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Grab Jumps 48% in a Year: Should You Hold or Fold the Stock?

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Grab Holdings (GRAB - Free Report) shares have appreciated 48.1% in the trailing 12 months, outperforming the Zacks Computer & Technology sector’s return of 7% and the Zacks Internet - Software industry’s rise of 14.8%.

Grab is benefiting from strong growth in its On-Demand Gross Merchandise Value (GMV), expanding fintech offerings and increasing user engagement across its platform. 

GRAB is a leading provider of deliveries, mobility and digital financial services sectors in more than 800 cities across eight countries in Southeast Asia — Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Uber Technologies (UBER - Free Report) is a major shareholder, owning 13.2% of GRAB’s total ordinary shares as of Feb. 15, 2025.

In the fourth quarter of 2024, On-Demand GMV grew 20% year over year, or 19% on a constant-currency basis, to $5 billion. Will the momentum continue in 2025?

GRAB Outperforms Sector, Industry

 

Zacks Investment Research
Image Source: Zacks Investment Research

Let us analyze it further.

Grab Partners With AWS to Drive Growth in Southeast Asia

GRAB is strengthening its position across Southeast Asia by partnering with Amazon’s (AMZN - Free Report) cloud computing platform — Amazon Web Services (“AWS”) — to drive growth in mobility, deliveries and financial services.

In December 2024, Grab selected AWS as its preferred cloud provider to accelerate growth across its mobility, deliveries, and financial services verticals, including its digital banks. 

Leveraging AWS’ scalable, secure and cost-efficient cloud solutions, GRAB enhanced operational efficiency, reduced infrastructure costs and rapidly launched innovative services. 

AWS powered Grab’s AI initiatives, enabling real-time decision-making, personalized user experiences and improved driver productivity, supporting Grab’s expansion across eight Southeast Asia countries.

GRAB Benefits From Expanding Clientele

Grab’s growing clientele now includes major players like Amazon, BYD and OpenAI has been noteworthy.

GRAB’s partnership with OpenAI marks a significant step in leveraging advanced AI solutions to enhance user, partner and employee experiences in Southeast Asia.

This collaboration focuses on improving accessibility with text and voice capabilities, enhancing customer support through intelligent chatbots, and upgrading GrabMaps with automated, high-quality data extraction. Grab will pilot ChatGPT Enterprise for employees to boost productivity.

Further diversifying its portfolio in January 2025, GRAB partnered with BYD to bring up to 50,000 electric vehicles (EVs) to Southeast Asia, offering Grab’s driver-partners access to BYD’s EVs at competitive rates, alongside financing options and extended battery warranties. 

The collaboration aims to accelerate the region’s transition to zero-emission transport by integrating deep IoT technology to enhance driver experience, improve ride reliability and optimize navigation while expanding eco-friendly ride options for users across six Southeast Asia countries.

Earnings Estimate Revisions Trend Upward for Grab

GRAB expects 2025 revenues between $3.33 billion and $3.40 billion, indicating 19-20% year-over-year growth. 

The Zacks Consensus Estimate for 2025 revenues is pegged at $3.34 billion, implying a year-over-year increase of 19.57%.

The Zacks Consensus Estimate for 2025 earnings is pegged at 5 cents per share, which has decreased by a penny in the past 30 days. 

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

GRAB Trades at a Premium

The Value Score of F suggests a stretched valuation for Grab at the moment, which makes it a risky bet for risk-averse investors.

The GRAB stock is trading at a premium with a forward 12-month Price/Sales of 5.36X compared with the industry’s 5.08X.

Price/Sales F12M

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Grab: Hold the Stock for Now

GRAB's strong portfolio and expanding partner base serve as key strengths, positioning the company as a formidable player in Southeast Asia’s super-app ecosystem.

However, Grab faces intense competition in its deliveries segment from regional players like Foodpanda, ShopeeFood and Gojek in Indonesia, as well as single-market players, such as Deliveroo in Singapore, and Line Man Wongnai and Robinhood in Thailand.

The economic uncertainty in key Southeast Asia markets, driven by factors like inflation, changing consumer behavior and supply-chain disruptions, is impacting GRAB’s financial performance.

Grab carries a Zacks Rank #3 (Hold), which implies investors should wait for a more favorable entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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