10 Most Promising Penny Stocks According to Hedge Funds

7. Grab Holdings Ltd. (NASDAQ:GRAB)

Share Price as of October 11: $3.63

Number of Hedge Fund Holders: 34

Grab Holdings Ltd. (NASDAQ:GRAB) is a leading Southeast Asian super app that offers services like ride-hailing, food delivery, payments, and financial services. It operates in 700 cities in 8 Southeast Asian countries.

In 2018, it acquired the Southeast Asian operations of Uber Technologies Inc (NYSE:UBER). Its digital banks segment is growing rapidly in Southeast Asia. Deposits and loans have increased significantly. It’s scaling the ecosystem, using AI, and investing in GenAI. It rolled out AI-powered DISH descriptions for automated engaging and descriptive text for menu items in 5 out of 8 markets at scale.

The company reported a 17.11% increase in Q2 2o24 revenue. The company’s 3 digital banks are fully operational, with deposits in GXS Bank in Singapore and Malaysia growing over 50% quarter-on-quarter to $730 million. GrabFin and its digital banks provided $2 billion in loans during the second quarter. Its near-monopoly position in Southeast Asia and growing user base have contributed to its recognition as one of the most innovative companies in the Asia-Pacific region.

It has seen a recent surge in its stock price, benefiting its institutional shareholders. The 4.3% increase has pushed its one-year return to a healthy 6.4%. Institutions, the largest shareholders, hold 42% of the company. The Top 9 Shareholders collectively own more than half the company. Insiders, owning 10% of the shares, have their interests aligned with shareholders. The General Public holds 21% while public companies and private equity firms collectively own the remaining 27% stake.

The company’s recent financial performance reinforces its bullish outlook. With a diverse investor base and positive sentiment from institutional shareholders, Grab Holdings Ltd. (NASDAQ:GRAB) is poised to capitalize on the region’s growing digital economy.