Grab Holdings shares have extended their sharp decline this year, breaking below a closely watched support level and trading at their weakest point since 2023. The stock has lost 43% year-to-date and 53% over the past 12 months, a stark contrast to the broader market's gains over the same period.
The sell-off is not isolated. Uber Technologies, which holds a stake in Grab, has retreated to $70.8 from a record high of $101.8. Lyft has fallen to $15 from a peak of $89, while Didi Global has dropped to $3.67 from $18. The weakness across the ride-hailing and mobility sector reflects broader investor caution toward the group.
Business fundamentals remain solid
Despite the stock's poor performance, Grab's operating results have continued to improve. Second-quarter revenue rose 22% to $997 million, while gross merchandise volume climbed 21% to $6.5 billion. The company's fintech segment has been a standout, with loan growth surging 197% year-over-year to $2.3 billion, partly driven by its Superbank business in Indonesia, where it now owns more than 50% and serves over 6 million customers.
Profit reached $235 million, supported by finance income following the Superbank consolidation and a $66 million movement in income tax expense. Analysts expect annual revenue to grow 25% to $4.19 billion this year and to $5.19 billion next year, with the recent $1.49 billion acquisition of Atome Financial potentially pushing actual figures higher.
Valuation metrics suggest the stock may be undervalued. Its forward price-to-earnings ratio stands at 21, while its forward price-to-earnings-to-growth ratio is just 0.05, well below the sector median of 1.17.
Technical picture points lower
The weekly chart shows Grab shares have fallen below the lower boundary of an ascending channel. The stock is trading under both its 50-week moving average and the $3.20 support level, which marked its June 8 low this year. It also remains below the Supertrend indicator, a bearish signal.
These technical developments suggest the stock could continue falling, with the all-time low of $2.19 emerging as a potential target. That level represents roughly 27% downside from current prices. Whether Grab can stabilize depends on broader sector sentiment and whether the company's improving fundamentals eventually attract buyers.
This article is for informational purposes only and does not constitute financial advice.
