Is GRAB a good stock to buy? We came across a bullish thesis on Grab Holdings Limited on GabGrowth’s Substack. In this article, we will summarize the bulls’ thesis on GRAB. Grab Holdings Limited’s share was trading at $4.2100 as of April 2nd. GRAB’s trailing and forward P/E were 70.17 and 45.66 respectively according to Yahoo Finance.
Grab Holdings Limited operates the Grab superapp in Cambodia, Indonesia and internationally. The company offers delivery services on its platform, such as GrabFood, a food ordering and delivery booking service. GRAB reported a mixed Q4 2025, with revenue of $906M missing expectations by roughly 4%, largely driven by its affordability strategy, which prioritizes long-term user growth over short-term monetization. Despite the headline miss, underlying performance remained strong, with FY2025 adjusted EBITDA margin expanding to 16.4% and continued improvement across all segments.
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Key operating metrics were robust, including 21% growth in on-demand GMV and a 15% increase in monthly transacting users to 50.5M, while its financial services arm saw exceptional momentum, with its loan portfolio surging 120% YoY to $1.18B, moving closer to profitability.
The deliveries segment remained the largest contributor, benefiting from advertising growth and operating leverage, while mobility margins improved despite pricing pressures from affordability initiatives. Notably, management’s long-term strategy centers on expanding total addressable market through pricing tiers, increasing lifetime value via ecosystem integration, and leveraging AI to drive efficiency. These initiatives are already bearing fruit, with new products contributing nearly half of GMV growth.
Importantly, the apparent revenue weakness was largely optical, as increased partner incentives—up 40% YoY—acted as contra revenue and masked underlying demand strength. Meanwhile, Southeast Asia remains significantly underpenetrated, offering a long runway for growth, particularly in markets like Indonesia. The company also continues to scale high-potential verticals such as GrabMart and digital banking, while strategic investments and acquisitions aim to complete its financial ecosystem.
Looking ahead, management guided for 20% revenue CAGR and a tripling of adjusted EBITDA over three years, alongside strong free cash flow expansion. While concerns remain around capital allocation and consecutive revenue misses, Grab’s improving profitability profile, strong execution, and large market opportunity position it as a compelling long-term investment with favorable risk-reward.
Previously, we covered a bullish thesis on Grab Holdings Limited (NASDAQ:GRAB) by amitisinvesting in January 2025, which highlighted Grab’s super-app dominance in Southeast Asia, strategic Uber partnership, rising profitability, 42 million monthly transacting users, and a $500 million share buyback program. GRAB’s stock price has depreciated by approximately 11.18% since our coverage. GabGrowth shares a similar view but emphasizes Grab’s continued underlying growth despite a mixed Q4, affordability-led revenue strategy, and strong momentum in digital financial services.
Grab Holdings Limited is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held GRAB at the end of the fourth quarter which was 59 in the previous quarter. While we acknowledge the risk and 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 more promising than GRAB and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
