Zomato CEO on the stock price falling from ₹150 to ₹40 – When asked about his reaction to Zomato’s stock price falling from a peak of ₹150 to a record low of ₹40, CEO Deepinder Goyal told ET NOW, “My reaction was…this is not actually real. This doesn’t make sense.” Goyal said that neither the highs nor lows made sense. Zomato has been witnessing a vertical fall and slipped below the low made on a listing day which is not a good sign for any counter. There is a risk-off situation across the globe amid fear of tightening by the US Fed, where if we look at the trend then there is a sharp sell-off in growth stocks (new edge businesses), especially loss-making companies,” Santosh Meena, Head of Research, Swastika Investment Ltd said. He said many new-edge companies came out with unrealistic valuations amid euphoria in the market, but we know that only a few companies will survive in the long run. “I believe Zomato has the potential to perform in the long run. The recent price correction is leading to stock at a reasonable valuation, where aggressive investors can use this correction as a buying opportunity with a long-term view.” He added.
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