Is Grab A Buy Or A Bye?
πππGrab $Grab Holdings(GRAB)$
Grab is currently up 3% on Friday 's trading and in the past 5 days, it has risen 1.6%. Grab is up 13% year todate.
In order to access whether Grab is a Buy, let' s check out Grab's Q2 24 earnings results released on August 15 2024.
Grab's revenue grew 17% year over year or 23% on a constant currency basis to USD 664 million. Grab's On Demand Gross Merchandise Value (GMV) grew 13% year over year or 18% on a constant currency basis to USD 4.4 million. For those who are new to investing, Constant currencies basis are exchange rates used by businesses to offset the impact of fluctuations when preparing financial statements. Gross Merchandise Value (GMV) measures the total value of goods sold on a platform or market place over a specific period of time.
Grab achieved a new milestone in Q2 24 with users reaching a record high of 41 million Monthly Transactional Users (MTUs) while delivering continued profitable growth at scale.
Grab delivered robust top line growth across all of its business segments with On Demand GMV growing 18% year over year to reach another all time high. This was driven by on demand growth as Grab increased its On Demand transactions by 22% year over year and drive cross usage of its products.
Grab achieved its 10th consecutive quarter of Adjusted EBITDA growth and its 2nd quarter of positive Adjusted Free Cash Flow. Grab now expects to achieve its positive Adjusted Free Cash Flow for the full year of 2024.
Grab has improved its Adjusted EBITDA by USD 81 million year over year to USD 64 million. Operating loss improved by USD 121 million year over year to - USD 56 million.
Grab has harnessed the strength of the Grab ecosystem and continues to improve the usage frequency and reliability of its products and services.
Grab uses machine generated learning and Generative AI, leveraging its data to provide AI powered solutions such as generating highly realistic food images to increase sales opportunities for its merchant partners.
Grab also uses cutting edge technologies such as geolocation, push notifications and mobile payment systems to ensure that it remains competitive in the fast paced digital arena. Grab places paramount importance on mobile app security as it handles sensitive user data and financial transactions.
In September Grab made a decision to integrate more than 1000 electric vehicles into its Indonesian operations, reflecting the global shift towards sustainable transport.
Grab's choice to partner with BYD $BYD ELECTRONIC(00285)$
for EV procurement shows its focus on eco friendly initiatives. By expanding its electric vehicle fleet, Grab aims to improve efficiency and demonstrate leadership in Green technology adoption within the ride hailing sector.
In Q2 24, Grab continues to increase its active driver supply with total monthly active drivers increasing by 13% year over year and 5% quarter over quarter. Driver retention rates remained stable at 90%.
Revenue for Grab Financial Services Sector grew 54% year on year or 61% year on year on a constant currency basis to USD 60 million in Q2 24. This was due to increased contributions mainly from lending across GrabFin and Digibank and further optimisation of payments incentive spend.
Customer deposits in Grab's Digital Bank business grew strongly to USD 730 million in Q2 24 from USD 33 million in the same period last year and from USD 479 million in the prior quarter. The strong growth was mainly due to an increasing number of deposit customers in both GXS Bank and GXBank, its digital bank in Malaysia.
Grab's IPO price was USD 13 on December 2 2021. At the last closing price of USD 3.73, Grab is undervalued and oversold.
Wall Street Analysts are bullish on Grab with a Strong Buy rating, Target price ranging from USD 7.00 to USD 4.00 according to Tipranks. That represents an upside potential of 87% from the top end.
Grab has grown from strength to strength since its IPO in 2021 and represents a fantastic buy at the current price. Grab has the potential to become a multi bagger in the future.
Is Grab A Buy Or A Bye? I believe it's a Buy as it has lots of exponential growth ahead. In the short term, Grab's share price maybe volatile but with patience and time in the market, I believe Grab will be a Winner!
Go Long Go Strong Go Grab! ππππππππππ°π°π°
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