12 Best Penny Stocks to Invest in According to the Media

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1. Grab Holdings Limited (NASDAQ:GRAB)

Share Price (As of January 3): $4.81

Number of Hedge Fund Holders: 39

Grab Holdings Limited (NASDAQ:GRAB) operates a leading Southeast Asian super app that offers a wide range of on-demand services, including ride-hailing, food delivery, and financial services. In 2018, the company acquired Uber’s Southeast Asian operations, confirming its position as the market leader in the region. Grab has operations in multiple countries including Singapore, Malaysia, Thailand,  Vietnam, and Indonesia.

Grab Holdings Limited (NASDAQ:GRAB) is using AI and machine learning to enhance its route optimization and demand prediction. This has helped in improving user experience, optimizing logistics, and reducing operational costs. As a result, service efficiency and customer satisfaction have significantly improved, driving higher user retention and more frequent app usage.

In addition to that, Grab Holdings Limited is exploring one of the prominent growth areas in the region through its Digital Financial Services division. Southeast Asia presents a vast market opportunity for the company to cover financial services as the region is home to a notable unbanked population. Moreover, the financial services could be used for its other offerings such as ride-hailing and food delivery services. During the third quarter, the company posted revenue of $716 million, up by 16% year-over-year, while the net income was $26 million compared to a loss of $91 million in Q3 2023.

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 time frame. If you are looking for an AI stock that is more promising than GRAB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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