Grab (GRAB) vs Rocket (RKT): Which is a better financial stock?

March 04, 2022 10:39 PM AEDT | By Raza Naqvi
 Grab (GRAB) vs Rocket (RKT): Which is a better financial stock?
Image source: © Solarseven | Megapixl.com
Highlights:
  • Grab Holdings (GRAB) stocks appears to be gaining attention after its release of financial results.
  • In Q4 2021, Grab Holdings' revenue was US$ 122 million, a decline from US$ 219 million in Q4 2020.
  • GRAB stock plunged to an all-time low on Thursday, March 3.

Stocks of Grab Holdings Limited (NASDAQ:GRAB) declined 37.3 per cent during the trading session on Thursday, March 3, as investors were left disappointed due to its financial results for the fourth quarter and fiscal 2021.

Grab Holdings develops delivery management, financial services, mobility, and enterprise software solutions through its subsidiaries. The company announced on March 3 that it posted a US$ 1.1 billion loss and a significant drop in revenue.

The loss and drop in revenues could be due to the promotional offers and high driver incentives offered by Grab Holdings.

A look at Grab's financial performance

In Q4 2021, Grab Holdings' revenue was US$ 122 million, a decline from US$ 219 million in Q4 2020. This reflected a decline of 44 per cent year-over-year (YoY).

The loss for fiscal 2021 jumped to US$ 3.56 billion compared to US$ 2.75 billion in 2020.

On March 3, the GRAB stock plunged to an all-time low of US$ 3.09 per share and reportedly wiped-off over US$ 7 billion from its market capitalization.

Also Read: As Snowflake (SNOW) stock plunges, is Salesforce a better option?

In Q1 2022, Grab Holdings expects its deliveries gross merchandise value (GMV) to be between US$ 2.4-2.5 billion. Meanwhile, it expects its mobility GMV to be in the range of US$ 0.75 to US$ 0.80 billion.

In the financial release, Grab Holdings mentioned that it is getting close to achieving the core food delivery segment adjusted EBITDA breakeven by the first half of 2023.

The performance of GRAB stock has been poor, and let’s take a look:

Grab stock                                                                                   ©2022 Kalkine Media® 

Bottom line

There are a lot of stocks from the financial services sector, and our search for a cheap financial stock brought us to Rocket Companies Inc. (NYSE:RKT), a provider of a wide array of financial services.

At market close on March 3, stocks of Rocket Companies closed 1.3 per cent higher at US$ 13.98 apiece.

In Q4 2021, Rocket Companies' revenue was US$ 2.6 billion, which represented 36 per cent increase from Q4 2019. Meanwhile, the company posted a profit of US$ 865 million in the fourth quarter of last year.

In Q1 2022, Rocket Companies expects to gain on sale margins of 2.8 to 3.1 per cent and closed loan volume between US$ 52 to US$ 57 billion.

Since the past week, the RKT stock surged about 21 per cent and 13.2 per cent in a month.

Also Read: What's next for investors as Vroom (NASDAQ:VRM) stock declines 46.5%?

Please note, the above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.