12 Best Technology Penny Stocks To Buy According to Hedge Funds

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1. Grab Holdings Limited (NASDAQ:GRAB)

Number of Hedge Fund Investors: 39

Stock Price as of December 23: $4.90

Grab Holdings Limited (NASDAQ:GRAB) is a leading Southeast Asian super app that provides a wide range of on-demand services, including ride-hailing, food delivery, and financial services. The company operates in multiple countries, including Singapore, Malaysia, Vietnam and Indonesia. The company earns revenue through transaction fees, delivery commissions, and financial services products such as digital payments and micro-loans.

Grab Holdings Limited (NASDAQ:GRAB) is focusing on cross-selling opportunities between its various services, particularly between food and mart. The company has observed that users who transact in both food and mart have a significantly higher order frequency and retention rate. To capitalize on this, Grab Holdings Limited (NASDAQ:GRAB) has been actively promoting mart services, which have been growing 1.7x faster than food in Q3. Additionally, the company is leveraging its strong brand and data insights to attract more users to dine out at physical stores, thereby expanding its total addressable market (TAM) and generating additional revenue through advertising.

Grab Holdings Limited (NASDAQ:GRAB) is continuously investing in artificial intelligence (AI) and data science to improve the efficiency of its operations and enhance the user experience. AI-driven targeting is also being used to optimize incentive spending, ensuring that resources are directed toward the most effective areas. Additionally, the company is leveraging its data insights to develop new products and services that meet the evolving needs of its users. Grab Holdings Limited (NASDAQ:GRAB) recently announced its FlexiLoan product, which offers flexible repayment terms. By leveraging its extensive data and sophisticated lending models, the company aims to offer financial services to users who are traditionally underserved by traditional banks.

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 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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