GOTO is one of the permanent elements of i.LQ45 Index in 2024. This means that the technology company's shares have a high market capitalization and good liquidity. It also makes GOTo stock one of the top rankings. blue chip stocks in indonesia
However, the low price (about R60 per share) has led many investors to question its quality. technology stocks This one. Before discussing whether GOTO stocks are worth buying or not. Please remember that this article is for educational purposes only. and does not invite or encourage investors to buy or sell certain shares.
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About GOTO
GOTO is the stock code for PT GoTo Gojek Tokopedia Tbk, which once operated two large startups in Indonesia, Gojek and Tokopedia. The company was founded on the basis of the merger between PT Application Karya Anak Bangsa (Gojek) and PT Tokopedia.
PT Solusi Karya Anak Bangsa was founded by Nadiem Makarim in 2010, while PT Tokopedia was founded by William Tanuwijaya and Leontinus Alpha Edison in 2009. The two companies later merged. (merger in May 2021 and begin listing on the Indonesian Stock Exchange (BEI) in 2021) 2022.
The main business of this company is Motorcycle for hire online (Ride the hail) and online markets. However, GOTO also has other business lines, such as food delivery services. financial services and technology solutions for MSMEs with this broad line of business. It is therefore not surprising that before the merger in 2021, the company's valuation is expected to reach $18 million and become one of the largest technology companies in Indonesia.
How is GOTO Stock performing today?
Despite being included in the LQ45 index, it is undeniable that the GOTO share price has continued its downward trend since its debut. The technology company's shares were recently sold for IDR 67 per share or IDR 6,700 per lot. T
This is separate from investors' feelings about the company's ability to be profitable and operate sustainably in the future. Because despite being over 10 years old and still receiving funding from major institutional investors, GOTO is still recording losses.
For example, in the first quarter of 2024, this company had losses attributable to major shareholders of Rp 861.9 billion. Even in the previous quarter This company also lost 80.85 trillion rupiah.
However, if you look at the company's year-over-year development, GOTO has improved from a financial perspective. This company's revenue in March 2024 increased by 22.4% and losses decreased from 3.9 trillion to 861 billion.
If we look at it from a revenue perspective alone, GOTO is also experiencing financial improvement, increasing 30.28% YoY from 2022 to 2023. However, it seems that this company's journey to profitability is still quite far considering that Over the past 5 years, there has been a slight loss. This company continues to grow every year.
Factors affecting the GOTO stock price
In addition to the financial factors mentioned above, There are also a number of factors that could affect GOTO's stock price and performance:
1. Technical factors
It cannot be denied that one of the reasons for the rise and fall of GOTO stock price is technical factors. For example, many FOMO investors bought this company's shares when they first launched. Or a large number of stocks begin to be sold on the stock exchange after the lock-up period of old investors' shares ends.
2. Reference interest rate
At the beginning of 2024, many analysts predict that the GOTO stock price will increase amid concerns that the benchmark interest rate may fall (business– It should be noted that at the beginning of this year the Fed predicted that inflation in the United States would fall. Therefore, the standard interest rate in that country (federal funds rate) has the potential to fall.
This reduction in the US benchmark interest rate may have an impact on business and the economy in Indonesia. Especially companies that accept foreign investors such as GOTO. Normally, when the Fed reduces the FFR in the United States, Bank Indonesia, as the financial entity in this country, will also reduce the BI rate, resulting in financing costs (capital cost– that must be borne by GOTO will also be cheaper and cheaper.
However, in reality, until mid-2024, the FFR has not decreased and remains at the level of 5.25 bps. In fact, the BI Rate has gradually increased to 6.25, increasing the costs of servicing old debt and acquiring debt. New for GOTO, more than ever before.
3. World oil prices
One of GOTO's main businesses is online motorcycle taxi service and food delivery service (Gofood). Both of these lines of business are definitely dependent on fuel consumption (BBM), which means that if world crude oil prices increase, Fuel prices in Indonesia will also increase. Ultimately, if GOTO does not increase the transportation rates for people and goods along with higher oil prices. The number of Gojek partners will definitely decrease.
In 2024, there is the potential for global crude oil prices to rise following the conflict between Israel and Iran, which happens to be one of the world's crude oil producers and distributors. If the government and Pertamina fail to prevent an increase in the price of crude oil that does not affect the price of oil. It is impossible that GOTO's business will shrink.
Conclusion
GOTO is one of the largest technology companies in Indonesia and a component of the LQ45 index. However, the company still has a long way to go in its pursuit of profitability and business sustainability. This problem is made worse by the macroeconomic outlook for 2024, which does not appear to support this company's business.
Therefore, it can be concluded that GOTO is a good stock to buy if you are an investor with a high risk tolerance and focus on long-term investing. Investing in these stocks is not suitable for investors with a low risk level and only a 3-5 year market outlook.
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