Is Getaround (GETR) a Buy After New Deal News?

By December 9, 2022, when Softbank-backed car-sharing company Getaround, Inc. (GETR) went public by merging with InterPrivate II Acquisition Corp., a Special Purpose Acquisition Company (SPAC), it was already late to the party.

Due to the fading appetite, relative to its peak in 2020 and 2021, for SPACs amid increasing interest rates and persistent downward market volatility, GETR’s shares tanked as much as 65% on its debut.

Six months on, GETR completed its acquisition of the assets of HyreCar Inc. (HYREQ), a premier gig car-sharing marketplace. With the acquisition expected to contribute up to $75 million of run-rate annualized Gross Booking Value, is the stock worth buying? Let’s find out.

Launched in 2011, GETR is the world’s first connected car-sharing marketplace which aims to simplify sharing of cars and trucks through its proprietary cloud and in-car Connect® technology and enable the shift away from car ownership. Today, the company has a presence across 1000 U.S. and European cities.

Which of the value-adjusted assets listed below would you prefer to let out for passive income if you have the scope?

  • Residential real-estate
  • Commercial real-estate
  • Multiple cars

According to its preliminary unaudited financial results for the fiscal year ending December 31, 2022, GETR’s total revenues are expected to come between $59 million and $60 million. The company expects its service revenue for the year to be between $57 million and $58 million and its cash and cash equivalent to be around $64.3 million.

Since the company is yet to file its annual report on Form 10-K, on April 26, GETR received a notice from the New York Stock Exchange (NYSE) regarding its non-compliance to the continued listing standard that requires the filing of all required periodic reports with the Securities and Exchange Commission (SEC). Continue reading "Is Getaround (GETR) a Buy After New Deal News?"