Shares of GoTo have suffered as a lockup on its major shareholders’ stakes expired at the end of November, freeing early backers to reduce their holdings. The ride-hailing and e-commerce provider faces intensifying competition from rivals such as Grab Holdings Ltd. and a deteriorating global economy. GoTo is about six quarters away from a cash crunch, Aletheia Capital said, recommending investors sell the stock.
GoTo Group said it has enough funds to last until it reaches profitability, trying to alleviate investor concerns about its financial health following a 70% slump in its stock price.
“Our balance sheet is sufficiently healthy to take us to profitability,” Chief Financial Officer Jacky Lo told investors in an online meeting on Thursday. The Indonesian internet company expects “to be able to accelerate” its breakeven timeline, will curb expenses and is considering selling non-core assets, he said.
