When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Zacks.com users have recently been watching Grab (GRAB) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Grab's super-app dominates Southeast Asia with 43 million users, leveraging AI-driven features and loyalty bundles to enhance cross-service engagement and user stickiness. Financially robust, Grab boasts a cash-to-debt ratio of 15.3x, a quick ratio of 2.46x, and a gross margin of 42.5%. Despite competition, Grab controls 55% of the $375 billion Mobility and Delivery market, with impressive GMV and MTU growth driving operational leverage.
Despite macro concerns, Grab's stock has shown resilience, recovering to $4.8, after Trump's tariff pause and solid 1Q25 results & EBITDA guidance upgrade. Adjusted EBITDA reached a record $106M, marking the 13th consecutive quarter of improvement. Prior investment in new products like Saver Deliveries/FoodMart has started paying off, boosting MTUs to a new high. Some kitchen sinking in Financial Services (FS) with EBITDA losses expanded on increased NPL provisioning. Management sees no deterioration in NPL, suggesting potential write back in future quarters.
Grab has achieved consistent profitability with strong revenue, EBITDA, and user growth, despite seasonal headwinds and a challenging macroeconomic environment. The company's mobility and delivery segments are driving profitability, while financial services show significant growth potential but remain unprofitable. Management's confidence and strategic positioning suggest Grab can be resilient and even counter-cyclical during economic slowdowns, supporting user growth and retention.
Shares of Grab have rallied in 2025, while U.S. peers have lagged, and the company's recent Q1 earnings added additional enthusiasm for this rideshare leader. The company boosted its adjusted EBITDA outlook for the year and has so far cited no macro impact. We note, however, that the company is sustaining growth via higher incentive spending, particularly in its mobility segment, which is seeing more meaningful deceleration.
Grab Holdings Limited (NASDAQ:GRAB ) Q1 2025 Results Earnings Conference Call April 29, 2025 8:00 PM ET Company Participants Douglas Eu - Director of Investor Relations and Strategic Finance Anthony Tan - Chief Executive Officer, Co-Founder and Chairman Alex Hungate - President and Chief Operating Officer Peter Oey - Chief Financial Officer Conference Call Participants Pang Vitt - Goldman Sachs Alicia Yap - Citigroup Venugopal Garre - Bernstein Société Générale Piyush Choudhary - HSBC Wei Fang - Mizuho Securities Divya Gangahar - Morgan Stanley Mark Mahaney - Evercore Jiong Shao - Barclays Capital Operator Ladies and gentlemen, thank you for joining us today. My name is Nora and I will be your conference operator for this session.
Grab Holdings Limited (GRAB) closed at $4.79 in the latest trading session, marking a +0.63% move from the prior day.
In the closing of the recent trading day, Grab Holdings Limited (GRAB) stood at $4.76, denoting a -0.42% change from the preceding trading day.
Recently, Zacks.com users have been paying close attention to Grab (GRAB). This makes it worthwhile to examine what the stock has in store.
In the latest trading session, Grab Holdings Limited (GRAB) closed at $3.98, marking a -1.73% move from the previous day.
On this episode of After Earnings, Ann Berry sits down with Grab CFO Peter Oey. Grab is a leading super app in Southeast Asia, offering everything from ride-hailing to food delivery, grocery services, and digital payments. The company went public via a $40B SPAC in 2021, but its stock has since dropped 64% as it works toward profitability. Still, growth hasn't slowed; revenue rose 19% in 2024, and its digital bank, GXS, now holds $1.2 billion in deposits. We spoke with Peter about whether super apps can become profitable, and why Southeast Asia is worth watching.