Grab (US:GRAB) Yahoo Finance·2025-11-04 20:12Core Viewpoint - Shares of Grab experienced a significant decline of 7.7% despite a strong third-quarter earnings report, indicating investor disappointment after a strong year for the stock [1][5]. Financial Performance - Grab reported a revenue growth of 21.9%, surpassing expectations, while earnings per share (EPS) of $0.01 met expectations and last year's figures [3]. - Adjusted EBITDA increased by 51% to $136 million, reflecting improved profitability and expanding margins [3][4]. - Management raised the lower end of its full-year revenue guidance to a range of $3.38 billion to $3.4 billion, while the upper end remained unchanged [4]. Market Reaction - The sell-off in Grab's stock is puzzling, as it had appreciated approximately 28% prior to the earnings release, and its valuation was considered high at over 8 times sales and over 53 times next year's earnings estimates [5]. - The broader tech sector faced pressure, with investors taking profits across AI stocks, which may have contributed to the decline in Grab's shares [2]. Investment Consideration - Grab's strong cash position, with approximately $5.3 billion in net cash, represents over 23% of its market cap, providing safety and potential for future investments [9]. - The Southeast Asian market shows promising growth prospects, making Grab an interesting option for investors seeking international exposure [7].