Okay so quite a few of you have asked me about Grab. And I understand why – Grab closed at US$2.81 this week. The lowest since mid 2023. And it is now down 59% since its high of 6.60 just late last year. Yet all 26 analysts covering Grab rate it a Buy, with an average target price of US$5.86 – double today’s price. I wrote about Grab in April at US$3.50–3.90, and my conclusion then was that “even if I am right, I don’t make a lot of money”. And personally, I hold grab shares with an average price of $3 – $4, so I am definitely down on this position. In this article, I wanted to discuss:

• Why does Grab keep falling when profits are growing 50%?
• What is priced in at US$2.81?
• Will I buy, hold or cut my Grab position?

Price action of Grab shares – multi year low on heavy volume Here’s the chart for reference. It’s just an absolute horror show....