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Grab Holdings – Uber’s Asian Peer Is Hedge Funds’ Favorite AI Penny Stock

We recently compiled a list of the 11 Best AI Penny Stocks to Invest in Now and in this article we will talk about one of our top picks.

Penny stocks can be very rewarding for investors who can tolerate a higher level of risk, but they do require meticulous research to identify the intrinsic value of the company and the hidden potential for growth opportunities. At Insider Monkey, we analyze thousands of companies through the prism of the hedge fund sentiment toward them, including stocks that are trading at very cheap prices. One stock that captured our attention among the best AI penny stocks to invest in now is Grab Holdings Ltd (NASDAQ:GRAB).

Grab Holdings Ltd (NASDAQ:GRAB) saw 37 hedge funds from our database holding its shares as of the end of March. This number was unchanged over the quarter, but the total value of shares held by these funds increased to $613 million from $561 million between January and March. The growth in the aggregate value of hedge funds’ positions can be attributed to a number of investors increasing their exposure to the company.

As of the end of March, the top shareholder of Grab Holdings Ltd (NASDAQ:GRAB) among the hedge funds in our database is Chase Coleman’s Tiger Global Management, which raised its position by 31% to 66.80 million shares. Other bullish investors include Ken Griffin’s Citadel Investment Group and Cliff Asness’ AQR Capital Management, which boosted their stakes by 232% and 308%, respectively, to 21.77 million shares and 13.06 million shares.

What To Know About Grab Holdings

Singapore-based Grab Holdings Ltd (NASDAQ:GRAB) provides delivery, mobility and digital financial services in Southeast Asia. The company has operations in eight countries, including Singapore, Thailand, Vietnam, Cambodia, Indonesia, the Philippines, Malaysia, and Myanmar. In 2018, Grab acquired the Southeast Asian operations of Uber Technologies Inc (NYSE:UBER).

For the latest quarter, Grab Holdings Ltd (NASDAQ:GRAB) reported revenue of $653 million, a 29% year-on-year increase on a constant currency basis. At the same time, the company’s first-quarter net loss narrowed down to $0.03 from $0.06 recorded a year-earlier. Even though the revenue managed to beat the estimates by $14.5 million, the net loss missed the expectations by $0.02.

On a segment basis, Grab Holdings recorded robust revenue growth across all three segments. Mobility saw an increase of 30% on the year to $247 million, while deliveries and financial services revenue grew by 24% to $350 million and by 56% to $55 million.

Following the results, several analysts reiterated their bullish stance on the stock. Barclays reiterated its ‘Overweight’ rating and raised the price target to $4.70 from $4.30, while analysts at Benchmark reiterated their ‘Buy’ rating and $6.00 price target.

Trading at 5.74 times its sales implies that Grab Holdings Ltd (NASDAQ:GRAB) is not cheap (by comparison for Uber Technologies Inc (NYSE:UBER) this ratio stands at 3.51). However, the company operates in emerging markets where the demand for its services (and its market share) will continue to improve. Moreover, it managed to narrow down its operating loss by $129 million to $75 million during the first quarter. It also posted a record EBITDA of $62 million and upped its 2024 EBITDA guidance to $250 million – $270 million range from $180 million – $200 million forecasted earlier.

Grab Holdings As an Under-the-Radar AI Play

Grab Holdings Ltd (NASDAQ:GRAB) commitment to applying artificial intelligence technology into its Core Business is what makes it one of the best AI penny stocks to invest in now. Between 2018 and 2019, the company invested $250 million on AI technology and is already reaping rewards. During the fourth-quarter earnings call, CEO Anthony Tan mentioned that Grab had built its own marketing tool powered by large language models (LLM) which allowed it to reduce content generation to just 90 minutes from 99 hours, while also improving the quality of content.

Moreover, Grab Holdings Ltd (NASDAQ:GRAB) is leveraging AI to help its customers get better food recommendations and its delivery drivers rely on Grab Maps, which uses AI to help them to easier identify the destination.

To further advance its AI presence, Grab Holdings Ltd (NASDAQ:GRAB) has recently announced a partnership with Microsoft Corporation (NASDAQ:MSFT)-backed OpenAI. Both companies will develop advanced AI solutions aimed at enriching the experience for Grab’s users, partners, and employees. Initially, Grab and OpenAI plan to focus on Accessibility, customer support, and mapping.

All in all, Grab Holdings Ltd (NASDAQ:GRAB) is definitely a stock that deserves a closer look for more risk-tolerant investors. If you want to explore other AI stocks under $5 that smart money is bullish on, check out our free report on the 11 Best AI Penny Stocks to Invest in Now.

If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

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