Why Grab Holdings Ltd. (GRAB) Is Skyrocketing?

We recently published a list of 10 Stocks Outperform Broader Market on Wednesday. In this article, we are going to take a look at where Grab Holdings Ltd. (NASDAQ:GRAB) stands against other stocks that outperform broader market on Wednesday.

The stock market finished in the red territory on Wednesday as investors sold off positions to mitigate risks from a fresh round of tariffs due in the next few days.

The tech-heavy Nasdaq fell the hardest, down 2.04 percent, followed by the S&P 500, down 1.12 percent. The Dow Jones declined by 0.31 percent.

According to President Donald Trump, all cars made outside of the US would be slapped with a 25-percent tariff beginning April 2.

Meanwhile, let us take a look at the 10 companies across mixed sectors that defied a broader market downturn, having registered modest to strong gains during the trading session.

To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume.

A customer enjoying the convenience of a mobile financial services transaction.

Grab Holdings Ltd. (NASDAQ:GRAB)

Grab Holdings snapped a two-day losing streak on Wednesday, finishing 5.29 percent higher at $4.78 apiece as investors took heart from news that it was planning to raise $2 billion to acquire rival GoTo.

According to a report by Bloomberg, GRAB was in discussions to obtain a bridge loan worth the said amount, but it might also tap a bond or equity offering program.

The report added that GRAB’s capital-raising plan indicates that the acquisition was proceeding after some hesitation and that the company is currently undergoing due diligence about the structure of the acquisition which could be worth $7 billion.

“I will always be open to anything that is enhancing our shareholders’ return … in the long term,” GoTo CEO Patrick Walujo was quoted as saying in an interview with the Financial Times.

“This is something that we need to really consider. Because the other thing that’s unique about GoTo is that we are a national champion,” he added.

Overall, GRAB ranks 3rd on our list of stocks that outperform broader market on Wednesday. While we acknowledge the potential of GRAB as an investment, our conviction lies in the belief that some 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 as promising as GRAB but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.