Why Swiggy's stock is down despite big revenue jump
Swiggy's shares dropped 2.05% to ₹410.65 on Friday morning, even though the company pulled off a big 36% jump in annual revenue and saw sales climb nearly 13% last quarter.
So, what's behind the dip?
Losses mount for Swiggy
Despite all that growth, Swiggy's losses actually got bigger—over ₹3,100 crore lost this year alone.
Their earnings per share are still deep in the red, which may have some investors worried about whether Swiggy can turn things around with so much competition out there.
Blinkit beating Zomato has likely added to worries
Swiggy's recent stock rally was partly thanks to rival Eternal Ltd. (owner of Zomato and Blinkit) posting huge numbers—Blinkit even beat Zomato's food delivery for the first time.
That may have given folks hope for Swiggy's Instamart business too.
Investors may be staying positive ahead of next earnings report
Even with today's dip, many investors may be staying upbeat as Swiggy preps for its next earnings report on July 31.
Strong revenue is a good sign, but experts suggest it'll take more than sales growth to win in this tough market.