ComfortDelGro Corporation's stock plummeted 3.29% in early trading on Thursday, despite the transport giant reporting a 19% increase in net profit for the first quarter of 2025. This unexpected market reaction has raised questions about investor confidence in the company's future growth prospects.

According to the company's business update released on Wednesday, ComfortDelGro's net profit rose to S$48.3 million for the quarter ended March, up from the previous year. Revenue also saw a significant increase of 16.4% year-on-year, reaching S$1.2 billion. The company attributed this growth to contributions from last year's acquisitions and improved margins, with operating costs growing at a slower pace of 15%.

Despite these positive financial results, investors appear to be concerned about potential challenges facing the company. The sharp stock decline may reflect worries about increased competition in the ride-hailing market, particularly from companies like Grab. Although ComfortDelGro's management expressed confidence that its taxi drivers would remain loyal, the market seems skeptical. This reaction highlights the ongoing pressures faced by traditional transport operators in an evolving urban mobility landscape.