Grab Holdings (GRAB) Drops 3.5% on Rating Downgrade, Stretched Valuation

We recently published 10 Big Names Investors Are Dumping. Grab Holdings Ltd. (NASDAQ:GRAB) is one of the worst performers on Wednesday.

Grab Holdings snapped a nine-day winning streak on Wednesday, shedding 3.48 percent to close at $6.10 apiece as investors soured on a rating downgrade for its stock, while taking profits from the previous days’ gains.

Earlier in the day, investment firm HSBC downgraded Grab Holdings Ltd. (NASDAQ:GRAB) to “hold” from “buy” previously, but slightly raised its price target to $6.20 from $6 prior.

The latest closing price was just 29 cents shy of its highest 52-week price of $6.42.

According to HSBC, the revision was based on its concerns regarding the company’s valuation, with its stock price already surging by more than 70 percent over the past 12 months, outperforming the Nasdaq’s 26 percent gain during the same period.

HSBC said that current valuations appear to be stretched, with the stock already trading at 80x PE for 2026 estimates.

Last month, Grab Holdings Ltd. (NASDAQ:GRAB) announced a strategic investment in WeRide.

The investment is part of a strategic partnership between both companies to accelerate the deployment and commercialization of Level 4 Robotaxis and shuttles in Southeast Asia.

While we acknowledge the potential of GRAB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.