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Understanding GoTo Shares and the Impact of Lock-Up Period on Investors

GoTo has become one of Indonesia’s most talked-about tech companies, especially since its IPO and the end of its lock-up period. With more than a quarter million shareholders, GoTo is the second most widely owned stock in Indonesia after Bank BRI. But what does the lock-up period mean for investors, and how should you approach GoTo’s future?

This article breaks down the concept of lock-up periods, examines real-world cases, analyzes GoTo’s financial performance, and shares practical strategies for investors who want to navigate this situation wisely.

What is a Lock-Up Period?

A lock-up period is a contractual restriction that prevents early investors, founders, and insiders from selling their shares immediately after an IPO. For GoTo, this period lasted eight months. After the lock-up expired, major shareholders such as Alibaba (8.84%) and SoftBank (8.71%) were free to sell their holdings.

Why Lock-Ups Exist

The main reason for lock-ups is stability. Imagine if large investors like Alibaba, SoftBank, or Telkomsel sold their shares on the same day as the IPO—prices would plummet due to oversupply. By delaying insider sales, companies maintain investor confidence and avoid panic selling in the market.

Examples from Other Companies

Looking at international cases helps investors understand possible outcomes:

• Zomato (India): When its lock-up ended in July 2022, shares dropped 20% within two days. Yet, Zomato remained the dominant food delivery service with 55% market share.
• Uber’s Exit: Uber sold its 7.78% stake in Zomato worth $392 million just 10 days after lock-up ended. However, 20 new institutional investors, including Fidelity and ICICI, stepped in, showing that one exit often means new entries.

Key takeaway: Short-term price drops don’t always reflect long-term business fundamentals.

GoTo’s Financial Performance

While GoTo is not yet profitable, its growth is undeniable:

• Revenue grew by 134% in the first nine months of 2022 compared to the same period in 2021.
• Losses increased by 75% (less than revenue growth), showing improved efficiency.
• Operating expenses rose 86%, but this was still below revenue growth, signaling better cost management.
• Layoffs of 1,300 employees reduced expenses, as salaries accounted for 37% of total costs.

Although losses are still large (over 20 trillion rupiah in 2022), GoTo’s trajectory shows signs of tighter cost control.

Comparing GoTo to Global Giants

Many compare GoTo to Amazon or Tencent due to its “one-stop shop” ecosystem. Like Amazon, which took six years after its IPO to turn a profit, GoTo may also need time to stabilize before delivering returns. This long-term perspective is essential for investors.

“Know what you own and know why you own it.” – Peter Lynch

Investment Strategies After the Lock-Up

So, what should investors do now that the lock-up has ended? Here are three principles to consider:

1. Moderate Your Expectations

GoTo is unlikely to generate profits or pay dividends in the near future. Even its management only targets a positive contribution margin by 2024.

2. Think Long-Term

Tech companies require patience. Amazon took decades to achieve dominance. GoTo may follow a similar long road before becoming profitable.

3. Diversify Your Portfolio

As Warren Buffett said, “Don’t put all your eggs in one basket.” Diversification across 3–6 well-researched companies spreads risks and increases resilience. You can mix GoTo with financial or consumer goods stocks that regularly pay dividends.

Final Thoughts

Investing in GoTo shares comes with both risks and opportunities. While short-term volatility is inevitable, the long-term story depends on GoTo’s ability to scale efficiently and compete globally. For investors, the smartest move is to stay informed, diversify, and set realistic horizons.

If you found this article helpful, share it with fellow investors or drop your thoughts in the comments below. Let’s build a smarter investing community together.

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Finance

References:

• Video: Lock-Up Saham GoTo Mau Selesai.. Kita Harus Apa?
• Channel: Saham dari Nol
• Watch the original source on YouTube