See the full story in the original article.
Original headline: Grab ( GRAB ) Reported $235 Million in Profit . Why Is Its Cash Flow Falling ?
Read the original on insidermonkey.com ↗
Related news
- Anthropic Reportedly Posted Quarterly Revenue Growth of 50% and Was Cash-Flow Positive. Here's Why It Might Not Be Enough to Impress Investors Before the Company's Massive IPO
Anthropic reportedly told investors at a private day that its revenue reached $16.8 billion for the three months ended Sept. 30, up 50% quarter over quarter, and that it was cash-flow positive and adjusted-profitable. That growth is slower than the 140% gain seen between the first and second quarters, and Jefferies had reportedly expected an annual revenue run rate of at least $80 billion. The company has delayed its IPO registration statement twice amid AI safety concerns and very heavy infrastructure spending. A Saxo Markets strategist says a valuation above $2 trillion would be about 30 times annualized Q3 revenue, making valuation the main debate. The article argues investors are now asking tougher questions about funding, cost of capital and returns, so these results may not impress them much.
- 3 Cash Flow Stocks To Watch In October 2026
US inflation reached 3.7% in September, driven by energy costs, which makes reliable cash generation more important for investors. The article covers three stocks screening as attractively priced on future cash flows, out of 92 additional companies the screen surfaced. Alphabet generates about $367.1 billion from Google Services and $77.6 billion from Google Cloud, where AI infrastructure and Vertex AI turn enterprise usage into recurring cash flows. Amazon's North America segment brings in about $453.7 billion and AWS $148.4 billion, with AWS growth reaccelerating to roughly 20% through 2025. The article notes that both companies' cash engines face a major AI infrastructure spending cycle that could reshape future margins.
- Goldman Sachs Picks Top African Gold Miners on Growth, Cash Flow Outlook
Goldman Sachs initiated coverage on Endeavour Mining and AngloGold Ashanti with Buy ratings, citing their organic growth, strong cash flow and shareholder returns, while both stocks trade at discounts linked to their jurisdictions. For Endeavour, Goldman set 12-month targets of GBP47 per share (EDV.L) and CAD90 per share (EDV.CN), based on 1x net asset value and 4.5x 2027 EV/EBITDA, and expects output to rise from 1.1 million ounces to about 1.5 million ounces by 2030. The Assafou project alone is expected to add 320,000 ounces a year, and the bank estimates shareholder distributions of about $1.8 billion over three years. For AngloGold Ashanti, targets are $104 per share (AU) and ZAR 1,720 per share (ANGJ.J), based on 1x NAV and 6x 2027 EV/EBITDA, with brownfield projects that could add 300,000 to 450,000 ounces a year by 2030, or 10% to 15% growth from the 2025 base.
- How Bad Would Outspending Its Cash Flow Be For Meta Stock?
Meta Platforms expects 2026 capital spending of $130 billion to $145 billion, after raising the bottom of its range from $125 billion in July, and plans to secure as much capacity as possible across 2026 and 2027. In the June quarter, capital spending consumed almost all of its $31.9 billion in operating cash flow, leaving free cash flow of $1.75 billion, down from $9.02 billion a year earlier; trailing-twelve-month free cash flow fell to $41.0 billion from $50.1 billion. If operating cash flow holds steady, spending at the top of the 2026 range would leave Meta about $15 billion short, though it held $90.3 billion in cash and short-term investments at the end of June. Total debt rose to $112 billion from $49.6 billion, and Meta is also partnering with BlackRock on a 1 gigawatt data center in El Paso, Texas. The article says the build stays affordable only while ad sales keep growing; Family of Apps ad revenue rose 27% to $59.4 billion, and the next report, expected around October 21, 2026, is the key checkpoint.
- Is Amazon Stock Poised to Gain as AI Boosts Cash Flow Prospects?
Amazon is turning its AI investments into revenue-generating products: AWS previewed new agent tools, and Bedrock added Claude Haiku 5.5 at roughly 75% lower cost than its predecessor. In Q2 2026, AWS's AI business and Amazon's Trainium and Graviton chip business each crossed a $25 billion annual revenue run rate, growing at triple-digit percentages, backed by multi-year commitments from Anthropic and OpenAI. AWS sales rose 37% to $42.2 billion in Q2, and its segment operating margin widened to 39.4% from 32.9%. However, Amazon raised its 2026 cash capex outlook to about $220 billion from $200 billion on higher memory costs, pushing trailing-12-month free cash flow to a $7.6 billion outflow, and expects capacity to fall short of demand through 2027. Microsoft and Alphabet face similar trade-offs, with Microsoft's free cash flow down 23% and Alphabet posting a negative $5.9 billion quarterly free cash flow.
- CoreWeave debt concerns : AI demand is strong , but can the data centre major cash flow justify its spending ? Explained
Investor concern over debt financing for AI infrastructure is spreading into tech stocks. CoreWeave shares fell 15.5% on Wednesday, then recovered to close 5.94% higher on Thursday, while Nebius and Iren also came under pressure. Investors are questioning whether CoreWeave can generate enough operating cash flow to fund heavy chip and data centre spending, given its heavily negative free cash flow. CEO Mike Intrator said the backlog more than supports all debt obligations, and Deutsche Bank said it exceeds $100 billion, with about two-thirds from investment-grade customers, reiterating its buy rating. Oracle's five-year CDS spread reached 282 basis points, a roughly 10% rise in one week, and a CDS spread around 1,000 basis points is generally seen as a sign of credit distress.
Related markets
Latest news
- Meta Earnings: What To Look For From META
Meta Platforms (NASDAQ:META) will report earnings this Wednesday after the market closes. Last quarter, revenue reached $60.8 billion, up 28% year on year and above analysts' expectations, though revenue guidance for next quarter slightly missed forecasts; daily active users hit 3.6 billion, up 3.4%. The market expects revenue growth of 23.6% this quarter, slowing from 26.2% a year earlier, and analysts have generally reconfirmed their estimates over the past 30 days. Over the last month, consumer internet stocks have gained 1.3% on average, while Meta is down 4.8%.
- An AI bust could come from places investors arent watching , an economist says
Concerns about an AI bubble are growing, and TS Lombard's Dario Perkins warns that investors may be overlooking other risks. Debt among smaller cloud providers, model developers and suppliers could reach $2 trillion by the end of 2027. Perkins does not see this as a systemic risk, but warns that earnings disappointments and canceled orders could ripple through the ecosystem, and that a chip glut could follow over-ordering. Much of the industry's revenue growth still comes from spending within the AI ecosystem rather than from businesses and consumers outside it. He also flags political backlash, noting that ordinary people dislike AI and nearby datacenters, and warns that one high-profile accident could turn AI toxic.
- Yen jumps after JGB auction draws big demand , euro finds relief
The yen rose 0.2% to 158.15 per dollar in Asian trading after a 20-year Japanese government bond auction drew bids of 5.84 times the amount sold, well above the 4.01 times at the previous auction, and the yield fell 6 basis points to 3.71%. A State Street strategist said the record demand suggests sidelined cash is returning and that JGBs are becoming a relative haven from political and fiscal volatility in Europe, particularly France. Anti-government protests in France prompted curfews in several cities, while Italy said it would send 500 troops after two days of unrest, and the euro rallied 0.2% to $1.1234. Elsewhere, bitcoin slipped 0.3% to $81,674.25 and ether edged down 0.2% to $2,393.21.
- Unemployment rate dips to 4 . 7 % - but vacancies hit five - year low
Vacancies fell by 21,000 to 691,000 in the three months to September, the biggest drop since the three months to March and the lowest since July to September 2014 outside the pandemic, while unemployment dipped in the three months to August. Payroll numbers were down 66,000 over the year to September. The ONS said the fall was mainly among smaller firms struggling with higher labour costs, following rises in employer national insurance, the minimum wage and workers' rights. A CBI survey found labour costs and regulations were making it harder to create jobs, and firms urged the Chancellor not to add to their burden in the October 28 Budget. ICAEW's Suren Thiru said the labour market is 'running on idle' and unemployment could climb above 5 per cent, while Shadow Chancellor Andrew Griffith blamed Labour's 'Jobs Tax' and red tape.
- CNBC Daily Open: Tech rebounds in the U.S., but Asia isn’t buying it yet
U.S. tech stocks rebounded as the Nasdaq Composite rose more than 1% on Monday, with Nvidia up 1.4% and Tesla up 3.8%. In Asia, however, tech shares fell on Tuesday, with South Korea's Kospi down over 4% and Japan's Nikkei 225 down 1.6%. Nvidia also unveiled plans to back four German AI startups as part of its nearly $10 billion European investment commitment. Jenny Lee of Granite Asia said Asian companies are reaching IPOs much sooner, often at four to five years old, while Jio Platforms' Indian IPO saw its anchor investor quota oversubscribed more than 30 times, aiming to raise up to 302 billion rupees ($3.2 billion). In Singapore, several agricultural stocks fell after Senior Minister K Shanmugam warned that companies would not escape responsibility for possible roles in the haze, noting seven firms had been questioned by the Singapore Exchange.
- NiSource (NI) Stock Looks Overvalued Against Its Dividend Outlook
NiSource has nearly doubled shareholders' money over the past five years, delivering a 97.6% total return, which raises the question of whether dividends can justify the current share price. The article highlights a new 20-year energy agreement with Microsoft, including customer-funded grid upgrades and long-term electric service for data centers, which may affect future capital needs and cash-flow visibility. Using a Dividend Discount Model with inputs of about $1.35 dividend per share, roughly 9.07% return on equity, a payout ratio slightly above 61%, and implied dividend growth of about 3.5%, the estimated intrinsic value sits meaningfully below the current share price of $41.95. The model still does not bridge that gap, suggesting income investors are paying a premium for a relatively steady payout with modest assumed growth.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.