Grab’s 2026 Selloff Had Reasons—But the Rebound Case Is Building

Key Points

• Grab Holdings is growing in Southeast Asia and is deeply undervalued relative to long-term forecasts.
• Analysts and institutions show strong conviction in their bullish posture.
• Free cash flow enables a buyback authorization that can help support price action.

Grab Holdings' NASDAQ: GRAB 2025 and early 2026 price pullback were not unwarranted, as merger and growth concerns emerged. However, trading at 40X this year’s earnings and approximately 2X the 2035 consensus, GRAB presents a deep-value opportunity in a stock poised to rebound. 

The price pullback was due to a merger with Indonesian ride-share competitor Go To, which has yet to be finalized, as well as potential for significant legislative change in Indonesia. Such changes would limit profit potential in one of Grab’s largest markets. 

Grab is well-positioned for growth in Southeast Asia, is profitable, and is outperforming expectations today. Economic growth is underpinned by industrialization, infrastructure investment, and a rapidly growing middle class with increasing access to digital communications.

These are strong tailwinds for growth, expanding the addressable market, increasing disposable income in that market, and broadening use and deeper penetration of Internet services. Near-term headwinds will pass.

Grab Has Strong Quarter, Authorizes Share Buyback

Grab had a strong Q4 2025, reporting revenue growth of 18.6% to $966 million. The top line outperformed consensus by a narrow 40 basis points and was underpinned by growth in all segments. Deliveries revenue, approximately half of the topline, grew by 16% year-over-year (YOY) on a constant currency basis, underpinned by a 21% increase in gross merchandise volume. Mobility, another growth pillar, grew by 15%, while the smaller Financial Services segment grew by 36%. 

Margin news was also good. The company’s quality improvements and revenue leverage resulted in significant gains, with adjusted EBITDA up 54%, operating profits versus losses, and adjusted free cash flow of $290 million, up 78%. The only bad news is that adjusted earnings came in at break-even versus the 1 cent expected, but this was offset by the guidance. The company targets low-20% revenue growth and accelerated, nearly 45% adjusted EBITDA growth in 2026. 

Grab’s board, in a sign of its confidence in cash flow and the growth outlook, authorized a follow-on $500 million in share buybacks. The $500 million is worth nearly 3% of the mid-February market cap and is expected to be used within the subsequent two years. The move not only reveals the board’s confidence but also provides a tailwind for price action. 

Analysts and Institutions Have Conviction in GRAB’s Future

Analyst data indicates strong conviction in the bullish stance. The seven analysts tracked by MarketBeat rate the stock a Buy, with six pegged at Buy or better, an 85% bias, and only one at Hold. They see this stock trading near $6.50, a 50% upside from early February support levels and a five-month high when reached.

Regarding the institutions, they collectively own 55% of the stock and have been aggressively accumulating. MarketBeat data shows a $3.60-to-$1 buy-side balance on a trailing 12-month basis, with early 2026 activity aligning with the trend. This is a strong support base and market tailwind capable of driving this price back to near-term highs. 

Grab’s stock price is set up to advance. While downside risk remains, the chart reflects oversold conditions and divergences that suggest bulls have regained control and can reclaim lost ground. The critical resistance targets are at $4.50 and $5, both of which are likely to spark volatility. Catalysts for the move include continued growth and improved profitability expected in upcoming earnings reports.