8 Best Large Cap Penny Stocks to Invest In

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1. Grab Holdings Ltd. (NASDAQ:GRAB)

Number of Hedge Fund Holders: 39

Share Price as of February 14: $4.96

Market Cap as of February 14: $19.64 billion

Grab Holdings Ltd. (NASDAQ:GRAB) operates a super-app platform across Southeast Asia, which includes Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. Its ecosystem connects driver and merchant partners with consumers, which provides access to mobility, delivery, digital financial services, and enterprise solutions through a single platform.

The company’s Deliveries segment is a powerhouse of growth. In Q3 2024, Deliveries GMV (gross merchandise value) reached $2,965 million, growing by 16% year-on-year. This acceleration from 14% growth in the previous quarter underscores the segment’s strong momentum. The company’s strategic emphasis on affordability and high-value services is attracting a broader customer base. The GrabUnlimited loyalty program continues to drive engagement, with subscribers spending 4x more and exhibiting 3x higher frequency compared to non-subscribers.

Cross-selling between GrabFood and GrabMart is also effective. Mart’s growth, outpacing Food by 1.7x, is boosting overall Deliveries performance. Notably, users who utilize both Food and Mart services demonstrate a 5x higher order frequency and a 2x higher retention rate, highlighting the synergy between these offerings. Grab Holdings Ltd. (NASDAQ:GRAB) is also actively expanding its merchant services, including facilitating dine-in options and providing advertising solutions. These initiatives not only enhance the platform’s value proposition but also contribute to the Deliveries segment’s growth.

While we acknowledge the growth potential of Grab Holdings Ltd. (NASDAQ:GRAB), our conviction lies in the belief that AI stocks hold great promise for delivering high 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: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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