Grab Is Down 83.5% and Growing. Here's Why It Has the Makings of a Monster Stock for the Next Decade.
2026-10-25 19:30
•Keith Noonan •The Motley Fool
•• ••• Axe Cap view
Why Grab’s Collapse Could Signal a Rare Emerging Market Opportunity
Despite a steep 83.5% drop, Grab's strong revenue growth and profitability make it a compelling long-term play for investors watching emerging markets.
Grab’s stock may look wiped out, but its fundamentals tell a different story. With 22% revenue growth and a rare 23.5% net margin, this is not your typical unprofitable tech collapse. The ride-hailing and delivery giant is expanding into fintech and buy-now-pay-later services, areas where Southeast Asia’s 460 million addressable users offer huge potential. For South African investors, Grab is not just an exotic tech story; it’s a window into the next phase of digital growth outside saturated Western markets. The USD/ZAR exchange rate is important here — rand strength could dampen returns in local currency as Grab’s earnings are USD-based. Still, trading at just 21 times forward earnings and 2.7 times sales, the valuation feels reasonable. Watch Naspers and Prosus closely, as their exposure to Grab could help South Africans gain indirect access. Of course, risks include regulatory changes in Southeast Asia and broader global tech volatility. Be ready to hold through the noise. this is just our opinion and not financial advice
Buy Naspers or Prosus selectively for long-term exposure to Grab’s growth, but hedge currency risk by monitoring USD/ZAR closely. Avoid direct foreign currency bets unless comfortable with rand volatility.
- Naspers
- Prosus
- USD/ZAR
- Regulatory shifts in Southeast Asia
- Rand strength reducing USD returns
6/10
Grab, Southeast Asia's leading ride-hailing and delivery platform, has seen its stock plummet 83.5% from its lifetime high and fallen 47% in 2026. However, the company continues to demonstrate strong fundamentals with 22% year-over-year revenue growth to $997 million in Q2, net income of $235 million, and a 23.5% profit margin. Trading at 21x forward earnings and 2.7x sales with 54 million monthly active users, analysts suggest the stock could be a long-term winner despite macroeconomic risks associated with international investments.
Our take is based on reporting first published by The Motley Fool.