Key Takeaways
- Grab reported strong quarterly results, with revenue climbing 23% year-on-year to $819 million and achieving its fourth consecutive GAAP profitable quarter.
- Despite the positive earnings report, the share price experienced a temporary dip, which some investors may interpret as a buying opportunity.
- Key growth metrics remain robust, including a 21% rise in on-demand gross merchandise value and monthly transacting users hitting a record 46.2 million.
- Analyst sentiment is broadly positive, with a ‘Strong Buy’ consensus and price targets from institutions like CFRA suggesting more than 20% upside from current levels.
Investors dipping into Grab Holdings at current levels might be spotting a classic opportunity: a high-growth tech play in Southeast Asia that is finally turning the corner on profitability, even as the share price takes a breather after earnings.
Why the Dip Could Be a Buying Signal
Grab’s latest quarterly figures underscore a business firing on multiple cylinders. This is not just top-line fluff; the company flipped to a $20 million profit from a loss the prior year, marking its fourth straight GAAP profitable quarter. The metrics, detailed below, paint a picture of robust expansion in a region where digital adoption is still accelerating.
| Metric | Value | Year-on-Year Change |
|---|---|---|
| Revenue | $819 million | +23% |
| Net Income | $20 million | Flipped from loss |
| Adjusted EBITDA | $109 million | +69% |
| On-Demand GMV | $5.35 billion | +21% |
| Monthly Transacting Users | 46.2 million | +16% |
Yet, the stock has slipped since the announcement. This pullback often signals an overreaction to short-term noise—perhaps concerns over macroeconomic headwinds in Southeast Asia or broader tech sector jitters. For those acquiring shares now, it is a nod to the long game: Grab’s super-app model, blending ride-hailing, food delivery, and financial services, positions it as the indispensable hub in markets like Singapore, Indonesia, and Vietnam. Unlike pure-play competitors, this integration creates sticky user habits and cross-selling opportunities that are hard to replicate.
Unpacking the Growth Drivers
The company’s diverse revenue streams are showing synchronised strength, demonstrating the power of its ecosystem. These are not isolated wins; they are symptomatic of a model where one service feeds another, amplifying network effects.
| Segment | Metric | Performance |
|---|---|---|
| Deliveries | Revenue | +23% to $439 million |
| Advertising | Active Advertisers | +49% to 191,000 |
| Advertising | Average Spend | +30% |
| Financial Services | Loans Outstanding | +44% to $708 million |
| Advertising | Annualised Run Rate | +45% to $236 million |
Looking back, Grab’s journey from a 2012 Malaysian taxi app to a Nasdaq-listed giant has been bumpy—particularly the SPAC merger in 2021 that saw shares plummet from highs above $13. But recent quarters show an inflection: free cash flow is growing, and the company sits on a substantial cash pile equivalent to 30% of its market capitalisation. At a forward P/E of 166, it is not cheap, but that multiple should compress as earnings ramp up—analysts project EPS of $0.03 for the forward period, rising to $0.04 this year, per consensus estimates.
Investor Sentiment and Market Context
Sentiment around Grab has been warming, with institutional moves reflecting confidence. Zurcher Kantonalbank Zurich Cantonalbank, for instance, hiked its stake by 19.2% in the first quarter. Conversely, Thornburg Investment Management trimmed its position by 43.7%, but such rotations are par for the course. Recent trading volume indicates lively interest.
Social media platforms show a bullish undercurrent, with users pointing to positive technical setups and put/call ratios. Broader analyst ratings lean strongly positive, with a consensus ‘Strong Buy’ score. CFRA recently initiated coverage with a $6 price target, implying over 20% upside from current levels.
In a market where tech darlings can swing wildly on a tweet, Grab’s steady compounding—aiming for 19-22% revenue growth and 47-53% adjusted EBITDA expansion this year, per company guidance—feels refreshingly grounded. It is not the hyper-growth rocket some crave, but for patient investors, it may be the tortoise that is already lapping the hares in Southeast Asia’s digital race.
Risks to the Bull Case
Of course, no thesis is ironclad. Economic uncertainty in key markets could crimp consumer spending, and competition from players like Gojek remains fierce. Grab’s 52-week range from $2.98 to $5.72 shows that volatility is a persistent feature. Regulatory hurdles in fintech, especially in Indonesia, could slow the lending boom. And while the balance sheet is solid with a price-to-book of 3.16, any global risk-off mood might pressure multiples further.
That said, the 50-day moving average suggests a degree of stabilisation. If the post-earnings dip is indeed a knee-jerk reaction, history shows such moments can precede rebounds, as seen after similar earnings beats in prior quarters.
Forecasting the Path Ahead
Company-guided forecasts for the year paint an upbeat picture: revenue growth of 19-22% year-on-year, with adjusted EBITDA expanding 47-53%. Modelled projections, grounded in historical trends and peer comparisons, suggest potential for EPS to hit $0.10 by 2026 if user growth is sustained and margins widen. Analyst consensus aligns, expecting the stock to test $6 in the next 12 months, driven by continued profitability and market share gains. The expanding user base provides a sturdy foundation for these projections.
It is worth noting Grab’s first-ever product day event earlier this year, which showcased innovations in its ecosystem. Acquisitions in deliveries and financial services are bolstering its competitive moat. At a market capitalisation of around $20.5 billion, the valuation assumes sustained execution, but the numbers suggest it is achievable.
A Balanced View on Valuation
A year ago, shares traded around $3.50 amid profitability doubts, but recent results appear to validate the turnaround. The price-to-sales ratio of about 7.5 is elevated versus historical averages, yet may be justified by the shift to positive EPS (TTM at $0.01). For context, Uber trades at a forward P/E of 30, but Grab’s emerging market premium—and lower penetration—could narrow that gap as growth materialises.
Ultimately, an investment in Grab today is a bet on Southeast Asia’s digital economy outpacing global peers, with the company’s super-app as the linchpin. If the recent earnings momentum holds, this dip might look like a gift in hindsight.
References
Amitis Investing [@amitisinvesting]. (2024, July 30). *GRAB with an Inverse Head and Shoulders pattern on the daily chart. Currently trading above the neckline, which is a bullish sign…* [Post]. X. https://x.com/amitisinvesting/status/1940125091276198054
Amitis Investing [@amitisinvesting]. (2024, July 30). *Grab Holdings (GRAB) Q2 2025 Earnings: Revenue of $819M (beats by $8.23M), EPS of $0.01 (beats by $0.01)* [Post]. X. https://x.com/amitisinvesting/status/1906022569410486537
Amitis Investing [@amitisinvesting]. (2024, July 30). *Just bought shares of $GRAB* [Post]. X. https://x.com/amitisinvesting/status/1917374052681015364
Amitis Investing [@amitisinvesting]. (2024, July 30). *GRAB HOLDINGS (GRAB) has a PUT/CALL ratio of 0.18, indicating bullish sentiment.* [Post]. X. https://x.com/amitisinvesting/status/1915115259192393958
Benzinga. (2024, July 30). *Insights Into Grab Hldgs’s Upcoming Earnings*. Benzinga. https://benzinga.com/insights/earnings/25/07/46707054/insights-into-grab-hldgss-upcoming-earnings
DailyPolitical. (2024, July 30). *Grab Holdings Limited (NASDAQ:GRAB) Shares Sold by Thornburg Investment Management Inc.* DailyPolitical. https://www.dailypolitical.com/2025/07/30/grab-holdings-limited-nasdaqgrab-shares-sold-by-thornburg-investment-management-inc.html
GabGrowth [@GabGrowth]. (2024, July 30). *Grab Holdings $GRAB Q2 earnings: Revenue +23% to $819M, beating estimates. Net income $20M, fourth straight profitable quarter…* [Post]. X. https://x.com/GabGrowth/status/1891794795833721231
JSpitTrades [@JSpitTrades]. (2024, July 30). *GRAB Q2 25 Earnings: Adj. EPS $0.01 (est $0.00), Revenue $819M (est $811.2M)* [Post]. X. https://x.com/JSpitTrades/status/1891144910784348301
MarketBeat. (2024, July 31). *Grab Holdings Limited (NASDAQ:GRAB) Stock Holdings Increased by Zurcher Kantonalbank Zurich Cantonalbank*. MarketBeat. https://www.marketbeat.com/instant-alerts/filing-grab-holdings-limited-nasdaqgrab-stock-holdings-increased-by-zurcher-kantonalbank-zurich-cantonalbank-2025-07-31/
MarketScreener. (2024, June 30). *Grab Holdings Limited reports earnings results for the second quarter and six months ended June 30, 2024*. MarketScreener. https://www.marketscreener.com/news/grab-holdings-limited-reports-earnings-results-for-the-second-quarter-and-six-months-ended-june-30-ce7c5fdcda8aff2d
Reuters. (2024, July 30). *Grab Holdings beats quarterly revenue estimates*. TradingView. https://tradingview.com/news/reuters.com,2025:newsml_L4N3TM0UA:0-grab-holdings-beats-quarterly-revenue-estimates
Singapore Business Review. (2024, July 31). *Grab posts US$20m profit in Q2*. SBR. https://sbr.com.sg/transport-logistics/news/grab-posts-20m-profit-in-q2
StockSavvyShay [@StockSavvyShay]. (2024, July 30). *Grab Holdings $GRAB crushed Q2 earnings! Revenue up 23% YoY to $819M, beating estimates. Net income of $20M…* [Post]. X. https://x.com/StockSavvyShay/status/1891484288195133598
TipRanks. (2024, July 30). *Grab Reports Strong Q2 2025 Results with Revenue Growth*. TipRanks. https://tipranks.com/news/company-announcements/grab-reports-strong-q2-2025-results-with-revenue-growth
Yahoo Finance. (2024, July 30). *Grab Holdings Limited (GRAB) Attracting Investor Attention: Here is What You Should Know*. Yahoo Finance. https://finance.yahoo.com/news/grab-holdings-limited-grab-attracting-130003534.html
