GoTo Shares Poised for Rebound Amid Ongoing Profitability Turnaround and Fintech Growth Potential

Southeast Asia's worst-performing tech stock, PT GoTo Gojek Tokopedia, is poised for a rebound as it achieves sustained profits and its fintech business provides significant upside potential. Analysts cite the company's financial discipline, buybacks, and ongoing profitability turnaround as reasons for optimism. Despite a $2.2 billion selloff, GoTo shares are expected to recover due to its solid operational footing and potential merger with regional rival Grab.

Southeast Asia's worst-performing tech stock, PT GoTo Gojek Tokopedia, is poised for a rebound as it achieves sustained profits and its fintech business provides significant upside potential. Analysts cite the company's financial discipline, buybacks, and ongoing profitability turnaround as reasons for optimism. Despite a $2.2 billion selloff, GoTo shares are expected to recover due to its solid operational footing and potential merger with regional rival Grab.

GoTo, formed via a merger of ride-hailing and food-delivery platform Gojek and e-commerce firm Tokopedia in 2021, reported its third straight quarterly profit on an adjusted basis in April. The company's adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) climbed to 393 billion rupiah ($24.2 million), versus a pro forma loss of 101 billion rupiah a year earlier. Net revenue jumped 37%, driven largely by the fintech business [1].

One driver of the improvement has been GoTo's fintech business, which saw revenue jump by 90% year-on-year last quarter, with monthly transacting users rising to more than 20 million. Mohit Mirpuri, a senior partner at SGMC Capital in Singapore, believes GoTo's fintech "scale and trajectory is just starting up" and will rival those of its competitors SEA Ltd. and Grab Holdings Ltd. in terms of momentum [1].

Another source of upside for GoTo's shares is the potential merger with regional rival Grab. While Grab is weighing a takeover of GoTo at a valuation of more than $7 billion, regulatory hurdles are considerable. Despite frequent denials, market chatter ratcheted up again last month when Grab's sale of convertible bonds fueled speculation it was building up a warchest for the acquisition [1].

Henry Wibowo, head of Indonesia research at JPMorgan in Jakarta, wrote in a research note last month that GoTo's share price is attractive at the current level and the recent pullback presents a good buying opportunity [1].

Much may hinge on GoTo's second-quarter results due this month. Investors will be looking for signs of further growth in the company's fintech business, progress on cost cuts from its decision to use the cloud services of Alibaba Group Holding Ltd., and any developments in the potential merger with Grab [1].

In the meantime, bulls are looking beyond the noise. "I do believe there’s room for a rebound even without a merger trigger especially if the company continues to deliver on profitability, execution, and capital discipline," SGMC Capital's Mirpuri said [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-07-11/goto-shares-are-tipped-for-rebound-after-2-2-billion-selloff