Stock Market Today, Nov. 9: Grab Holdings Jumps on Record Adjusted EBITDA and Q3 Revenue Beat

On November 9, Grab Holdings (GRAB) experienced a significant rise in its stock price, closing at $3.44, an increase of 0.88%. This gain was driven by several factors, including revenue that exceeded estimates, record adjusted EBITDA, and plans for AI infrastructure development. The trading volume was notably high, with 88.9 million shares traded, about 42% above the three-month average of 62.6 million shares.

Founded in 2020, Grab's stock had dropped by 71% since its IPO. The S&P 500 and Nasdaq Composite also saw gains on this day, closing at 7,550 and 25,253, respectively, both with gains of 2.35% and 2.74%. Among competitors, Uber Technologies increased by 3.76% to $71.17, while Lyft dropped by 1.93% to $16.76.

The company's optimism was further fueled by its announcement of a joint agreement with SoftBank Group to develop artificial intelligence infrastructure in Malaysia, marking one of the largest AI facilities in the region. This development added to investors' positive outlook on Grab's Q3 earnings release on November 3.

On November 3, Grab reported a Q3 revenue of $1.1 billion, a 27% year-over-year growth, and recorded a record adjusted EBITDA of $237 million, a 73% year-over-year increase. Adjusted free cash flow nearly doubled year-over-year to $533 million on a trailing twelve-month basis. The company had also raised full-year guidance during this period, contributing to the latest stock rerating following the beat on earnings and outlook.

However, Grab encountered a setback last month when its attempt to acquire Taiwan-based Foodpanda from Delivery Hero was rejected by the Taiwanese government due to anticompetitive concerns. While this move resulted in a $60 million breakup fee for Grab and retained $550 million in cash, it also highlighted the competitive nature of the food delivery market, dominated by giants like Uber and Foodpanda.