Here’s why Blibli’s shares are up when everyone else’s are down

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Hello reader,

Do you invest in stocks? I haven’t gotten to that part of my investing journey yet, but some of my friends have.

There was a time when tech stocks were especially exciting, and as a result, I know folks who have bought shares in tech companies like Google, Facebook, and even regional firms like Grab and Sea Group.

As far as I can tell, investing in tech seems to be something of a rollercoaster ride. The outcome is oftentimes affected by factors outside of one’s control, like some bigshot across the world decided that the tech is problematic or something. It seems pretty stressful.

In today’s premium story, we look at an Indonesian tech company that has seen its share price go up in a time when its peers are down. Blibli may not be a big player in Indonesia’s ecommerce scene, but its stock market performance shouldn’t be overlooked.

Today we look at:

• Why Blibli is outperforming GoTo and Bukalapak on the stock market
• A pet care startup that’s raised series B money
• Other newsy highlights such as GoTo denying rumors of merger talks with Grab as well as Singtel Innov8 selling its shares in Vizzio back to the startup’s embattled founder

Premium summary

Up, up, and away

Image credit: Timmy Loen

Among all the major ecommerce platforms in Indonesia, Blibli has the lowest market share. However, in 2023, its shares on the Indonesia Stock Exchange increased by around 2.6%. While the increase isn’t significant, it still performed better than GoTo and Bukalapak, which declined by 8% and 18%, respectively. Let’s take a closer look.

• Owners and operations: Blibli focuses on its niche in the electronics category and provides customers with both an online and offline experience. Its stocks are primarily owned by parent company Djarum Group, an association that gives Blibli a stable reputation among the public. The ecommerce firm’s expansion last year was also mostly oriented toward monetization and not just “for the sake of growth.”
• The big picture: However, some experts say that the performance of Blibli’s shares does not reflect the company’s underlying fundamentals in 2023. He says that the decline in GoTo’s and Bukalapak’s shares more accurately reflects the state of the tech sector in the country last year.
• The power of travel: Blibli is now working toward profitability. Its marketplace as well as online travel agent (OTA) platform Tiket, which merged with Blibli in 2022, contributed most of the firm’s revenue. The inclusion of Tiket plays a crucial role in the company’s profitability, as the value in OTA products are larger compared to those in the consumer goods segment.

Read more: Why Blibli’s shares are outperforming GoTo, Bukalapak stocks

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