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Grab’s SPAC splash ends bad week for blank check combinations – TechCrunch


What goes up must come down. And what’s going on SPAC has to go splat? We will continue to work on this.

Either way, shares of super app Grab got the upper hand today after its SPAC suit was approved last night and started trading this morning. Grab’s share rose initially, before dropping sharply as the day progressed.

At the close of trading, Grab was worth $ 8.75 per share, down 20.53%, according to Yahoo Finance’s tally. Shares are still down 1.7% at the time of writing.

But Grab’s poor performance was just one of the beginnings spearheaded by PSPC today. Buzzfeed also encountered a buyout buzzsaw while trying to secure its PSPC deal, while its staff were in open revolt and its leaders have tried to bring them into compliance by threatening to cut their wages – that will certainly fix the problem.

And there was more. MetroMile, the neo-insurance company that went public via a SPAC, today hit a new 52-week low at $ 2.27 per share before recovering. Since the 52 weeks of the company high was just over $ 20 a share, its declines on that side are legendary.

There are other SPAC blood splatters on the walls of public markets. Desktop Metal shares are below $ 6 after hitting $ 34.94 last year. This is another SPAC combo that has largely deflated after consumption. Who else? Lordstown: Today it is worth $ 4.14 per share, up from $ 31.56 last year.

The list goes on. There will be PSPC winners. SoFi is still above the $ 10 per share mark by a good margin, for example, but weft.

But what about Grab?

When we analyzed Grab’s third quarter results this morning, we noted the decline in revenue and the increase in losses. These KPIs were pointing in the wrong direction.

Yet with effectively zero buyouts and the backing of PSPC held for three years, I presumed there was something in Grab that I was missing. There was none, as it turned out.

The growth method to avoid investor dissatisfaction is to post lots of increases in income, which makes even rising the losses appear to be lower, at least in terms of a percentage of income. Flat losses are better. And the fall in losses better, of course. But if the income is down while losses increase, so things are Wrong.

Not that Grab isn’t going to put it all together in time. It’s possible ! But going public with a falling top line and an increase in red ink was never going to be easy. Perhaps we should be less surprised that Grab has only managed to underperform as a public company so far.

Not a good week for PSPCs.




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