We recently published a list of 13 Best Technology Penny Stocks to Buy Right Now. In this article, we are going to take a look at where Grab Holdings Ltd. (NASDAQ:GRAB) stands against other best technology penny stocks to buy right now.
Marta Norton, the chief investment strategist at Empower, appeared on CNBC’s ‘Squawk Box’ on March 26 to express her bullish outlook on small caps and emphasize that the market’s short-term trajectory depends on upcoming tariff decisions. The question is whether tariffs are short-term and less disruptive negotiating tools, or a disruptive and longer-lasting precursor to a shift in global trade that could address the trade deficit, and create extra revenue for the federal government. Norton explained that tariffs initially affect earnings and are then followed by the companies’ attempts to pass increased costs to consumers. However, this usually doesn’t happen due to demand elasticity and the general nature of consumers. Sectors like tech show minimal earnings revisions despite the potential cost and revenue impacts that come from retaliatory measures.
Norton advised investors to go for a balanced approach in 2025 and stated that there aren’t many areas where you can move in right now, but small caps are an exception to this sentiment. Small-cap stocks have transitioned from relatively cheap to absolutely cheap very recently. While small caps exhibit economic sensitivity, adding positions in them is relatively safer. Later, on March 29, Tony Wang, T. Rowe Price portfolio manager, joined ‘Closing Bell Overtime’ on CNBC to talk about the volatility in tech, and whether it’s a time for heightened caution or not. Wang noted that this volatility is more likely a buying opportunity than not. He observed that growth and momentum in the tech sector have been high in the past few years. The tech sector in particular recently saw two years of strong growth. He thinks that valuations haven’t yet reached capitulation levels.
Our Methodology
We sifted through the Finviz stock screener to compile a list of the top technology penny stocks that were trading under $5 as of March 28. We then selected the 13 technology stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A customer enjoying the convenience of a mobile financial services transaction.
Grab Holdings Ltd. (NASDAQ:GRAB)
Share Price as of March 28: $4.8
Number of Hedge Fund Holders: 57
Grab Holdings Ltd. (NASDAQ:GRAB) operates a superapp in Southeast Asia. It operates through four segments. These include Deliveries, Mobility, Financial Services, and Others. Its Grab ecosystem is a single platform with superapps for driver and merchant partners along with consumers, for mobility, delivery, and digital financial services.
The company focuses on using its ecosystem to drive cross-selling. For instance, customers who use both the Food and Mart services have a 4 times higher spending and 2.5 times higher frequency uplifts as compared to those only using the food delivery services. Retention rates are also twice as much for these customers. This drives high on-demand Gross Merchandise Value (GMV). The company reported a 20% year-over-year improvement in on-demand GMV in Q4 2024.
This is attributed to product and tech-led initiatives. Key examples of such initiatives include Saver Rides and Priority Deliveries. These features improve affordability and reliability and hence help attract and retain customers. Grab Holdings Ltd. (NASDAQ:GRAB) is also investing in the Southeast Asian market, which is potentially under-tapped.
Overall, GRAB ranks 1st on our list of best technology penny stocks to buy right now. As we acknowledge the growth potential of GRAB, our conviction lies in the belief that AI stocks hold great promise for delivering high 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: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
