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Hello reader,
The science fiction writer Arthur C. Clarke had it right when he wrote that “any sufficiently advanced technology is indistinguishable from magic.”
After all, how many of us can even explain how smartphones work? Some of you probably have a stronger grasp on it, but I think I’m like most folks when something like ChatGPT enters the arena. We scratch our heads and go, “Must be magic.”
Clarke could have also been talking about the stock markets – sometimes, it sure feels like they move at the behest of supernatural forces. Share prices go up, down, side to side, and few people can divine why.
Take Grab (GRAB, Nasdaq), for example. Last week, the super app reported what it called a “strong set” of results for the fourth quarter of 2023, but its share price fell 8% in the trading session following the announcement. What gives? Shouldn’t a company that’s doing well perform better on the stock market?
Luckily, my colleague Simon has a better handle on the vagaries of the market than most. In today’s Big Story, he dives into the possible explanations for the discrepancy between Grab’s results and the market reaction. Spoiler alert: Magic is not a factor.
— Peter
THE BIG STORY
Image credit: Timmy Loen
Why Grab’s shares declined despite its ‘strong’ Q4 results
Grab’s shares have underperformed US-listed peers like Uber and DoorDash over the past year despite having similar growth prospects.
3 Trends to keep an eye on
Hot stocks, earnings reports, restructuring, pressure from activist investors, and more.
Photo credit: ximagination / 123RF
1️⃣ 1+1 = Sell to TikTok: Occam’s razor is a complex philosophical concept, but when broken down to its essence, it suggests that the simplest explanation is usually the best one. This could apply to GoTo’s (GOTO, IDX) decision to give up a majority stake in its ecommerce arm, Tokopedia, to short-video app TikTok.
2 Eye-popping facts
The one you didn’t see coming
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