Prominent Singaporean entrepreneur Adam Khoo cast doubt on Grab Holdings Ltd.’s GRAB investment potential Tuesday, even as the Southeast Asian super-app’s shares rose 8.16% to $5.30, adding to its 51.86% gain over the past year.
What Happened: “I live in Southeast Asia and personally use the GRAB app everyday for transport and ordering food. But I will not invest in the stock because I think it does not have a strong economic moat,” Khoo wrote on X, offering a ground-level perspective of the company’s market position.
He emphasized the platform’s limited pricing power, noting how easily users switch to competitors like ZIG, GoJek, or Food Panda when prices increase.
Khoo’s skepticism about Grab’s potential as a “multi-bagger” investment stems from its confined growth prospects beyond Southeast Asia, where it currently operates in eight countries.
What Happened: His assessment aligns with recent analyst sentiment, as 14 analysts maintain a consensus price target of $5.14, below current trading levels.
The Singapore-headquartered company, valued at $20.99 billion, has built a comprehensive platform offering services from ride-hailing to financial services since its 2012 founding.
However, recent ratings from HSBC, Bank of America Securities, and China Renaissance, averaging $5.25, suggest limited upside despite the stock’s strong momentum, supporting Khoo’s thesis about the company’s growth constraints.
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