Grab Holdings shares advanced 2.6% in Thursday afternoon trading on Nasdaq, reaching $3.54 as investor sentiment was buoyed by a strong first-quarter profit and a $500 million share buyback program. The stock touched an intraday high of $3.55 before settling just below that level, giving the Singapore-based ride-hailing and delivery company a market capitalization of roughly $14.0 billion.
More than 35 million shares changed hands during the session, well above average daily volume, as traders positioned ahead of Friday's Juneteenth market closure. Nasdaq has announced that its U.S. equities and options markets will be closed on June 19 for the holiday, making Thursday the only full trading day of the short week.
Q1 performance and buyback
Grab's first-quarter results, released in May, showed revenue of $955 million, up 24% year-over-year. On-demand gross merchandise value reached $6.1 billion, also a 24% increase. The company reported net profit of $120 million, while adjusted EBITDA climbed 46% to $154 million. CEO Anthony Tan described the quarter as a "strong start to 2026," and CFO Peter Oey highlighted the company's "disciplined capital allocation."
The $500 million buyback, which allows Grab to repurchase its own shares, has been a key talking point for investors focused on capital returns. However, the stock continues to face headwinds from the company's 2026 revenue forecast of $4.04 billion to $4.10 billion, which fell short of Wall Street expectations when it was issued in February.
Valuation and competitive landscape
Analysts remain broadly bullish on Grab, though the stock's valuation remains a subject of debate. The company is working to integrate ride-hailing, food delivery, advertising, and lending into a single profitable platform across Southeast Asia, where price sensitivity among consumers remains a challenge.
In the broader market, U.S. delivery peer DoorDash rose about 4.3% on Thursday, while Sea Limited—the Singapore-based owner of Shopee and digital financial services—ticked up 0.2%. Grab's gain fell between these two, reflecting a mix of company-specific catalysts and broader sector momentum.
Analyst ratings and risks
Several analysts continue to recommend the stock. DBS' Sachin Mittal maintains a Buy rating with a $5.93 price target (as of May 21), Phillip Securities' Helena Wang holds Buy and a $7 target (May 11), and China Renaissance's Yiwen Zhang upgraded to Buy with a $5 target on May 7.
Key risks include rising fuel prices, increased discounting to maintain demand, and softer discretionary spending, all of which could pressure margins. Regulatory uncertainty also looms: Grab's planned $600 million acquisition of Delivery Hero's Foodpanda Taiwan business—its first expansion outside Southeast Asia—is expected to close in the second half of 2026, subject to regulatory approval.
Thursday's gain appears to be a tactical rebound rather than a fundamental rerating. The focus now is on whether Grab can convert transaction growth into sustainable cash flow without relying heavily on discounts, especially after the holiday-shortened week.
