1. Grab Holdings Limited (NASDAQ:GRAB)
Share Price as of July 12: $3.61
Number of Hedge Fund Holders: 37
Grab Holdings Limited (NASDAQ:GRAB) is a Singapore-based company known for its super-app that integrates ride-hailing, food delivery, and digital payment services. It is the top stock on our list of best NASDAQ penny stocks. It operates in eight Southeast Asian countries including Singapore, Malaysia, Indonesia, and Vietnam among others. The company’s mobility segment provides users with transportation options, while the delivery segment offers on-demand food and logistics services across the region.
The company has become a key player in Southeast Asia. A Momentum Works report indicates that Grab (NASDAQ:GRAB) controls 55% of the region’s total gross merchandise value (GMV) in food delivery platforms and has a larger share in the ride-hailing sector. Additionally, the Wall Street Journal reports that the company covers 63.5% of Indonesia’s ride-hailing market and 47.8% of the country’s food delivery market. We covered it in detail in our best Robinhood stocks article.
What makes Grab (NASDAQ:GRAB) an attractive investment prospect despite its unprofitability is its leading market position in Southeast Asia. The company holds a near monopoly status in the region, especially after its acquisition of Uber’s Southeast Asia operations in 2018, and in 2023 it announced the acquisition of Trans-cab, Singapore’s third-largest taxi operator. The acquisition is facing some regulatory hurdles, but if it goes through, Grab could completely dominate the Southeast Asian market, a region that comprises nearly 8.5% of the world’s population.
Moreover, the company has a strong cash position as it closed out the first quarter with $2.1 billion in cash, which is enough to sustain the company’s growth for the foreseeable future. Analysts are also looking at the stock in a favorable light as according to the consensus opinion of 26 analysts, the company stock is a Strong Buy with an average price target of $4.7, representing a 30.2% upside to current levels on July 12.
In the first quarter, 37 hedge funds had stakes in Grab Holdings Limited (NASDAQ:GRAB), with total positions worth $612.785 million.
While we acknowledge the potential of Grab Holdings Limited (NASDAQ:GRAB) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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