GoTo Amidst Fading Confidence in 'Too Big to Fail'

Despite a brief surge post-Tokopedia's share divestment to TikTok, GoTo Gojek Tokopedia Tbk, or GoTo, finds its stock price again in a downward trail, approaching levels not seen since October last year. This decline precedes the impending opening of the lock-up period for Series B shares by the end of March, fueling fears among investors of further sell-offs by the company's founders.

Founder and multiple voting share (MVS) owner trio—William Tanuwijaya, Andre Soelistyo, and Kevin Aluwi—triggered a stock sell-off in the last quarter of last year. Andre intends to sell up to 10 percent of his shares, while William plans to offload approximately 15 percent in the medium term. Additionally, Kevin, who no longer holds a position in the company management, intends to continue selling off his Series A shares. These actions have raised doubts among retail investors about the founders' long-term commitment.

Amidst the market's jittery sentiment, GoTo management announced the forthcoming release of its financial report for the fourth quarter and full year of 2023 on Mar 19. A conference call, scheduled for the same day at 19:00 Jakarta time, aims to dissect the results and provide clarity to stakeholders.

During a virtual public expose event preceding the announcement, CEO Patrick Walujo emphasized the significant achievement of adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) in the fourth quarter of 2023, signaling the company's unwavering focus on operational efficiency across its business units, and assurance that founders stock releases not because of company's decreasing performance.

Following these disclosures, GoTo's stock, which had hit a four-month low of Rp 63 in Tuesday's trading, witnessed a rebound, closing at Rp 74 per share in Wednesday's session. While the year-to-date stock correction narrowed from 27.59 percent to 14.94 percent, the lingering substantial correction underscores the ongoing cautious stance of the market.