This $3.93 Penny Stock is the Next Super App

Imagine one app on your phone. It gets you to work, orders lunch, pays your bills, and gives you a loan. It's a super app, and it already exists, and almost nobody in America has ever heard of it. This super app is a tiny $3.93 penny stock with a potential to be the next Google, Uber, and JP Morgan combined. I'll show you how and why I'm buying this stock for as much as nine times return on my money. Nation, this is the most powerful kind of investing you can do. Finding companies that have already won somewhere, but before Wall Street notices. These small and penny stock companies are beating the market up 22% in the first 6 months of the year, easily above bigger company stocks. It's like finding Mercado Libre dominating e-commerce in Latin America and a stock worth 81 times your money in 15 years, or like Sea Limited dominating gaming and fintech in Southeast Asia and worth 10 times your money in just 5 years. And when I started digging through those small cap stocks a few months ago, Grab, ticker GRAB, kept showing up. And at first I thought, "Okay, just another ride-sharing company." Then I kept peeling back the layers and realized I just found the next super app, the one app on your smartphone that will become everything. Uber is a $150 billion company in mobility and delivery with its ride-share and Uber Eats. The Cash App has made Block a $47 billion company with the ability to send, receive, and request money. And PayPal has grown into a $40 fintech leader in lending. In America, these are four different companies and a $237 billion market value. In Southeast Asia, they're becoming one single company, but you can get the stock for just $3.93 per share and a $16 billion market value. So, what exactly is Grab, and why do I think this becomes one of the world's next great technology platforms? Uh the easiest way to think about this is imagine if Uber, DoorDash, Cash App, PayPal, and Google Ads all had a baby. Okay, imagine if they all merged into one company and instead of making you download five different apps, everything lived inside one app. That is Grab. Most people first discover the app because they need a ride. Just like Uber, they open the app, book a car, and then listen to the driver solve inflation, the border, and the NFL salary cap before they can get three blocks. Or you can ask the app to deliver you one pack of top ramen for dinner because that's how baller you roll. But where Uber starts there, it's just the front door for Grab. Once you've got millions of people opening the app every day for rides and delivery, now it becomes a flywheel with locked-in customers. Need groceries but you're glued to the couch for 16 hours watching a guy pressure wash driveways on YouTube? Grab's got you covered. Need to buy insurance at 3:00 a.m.? Grab has got you. It is all built into the same app and that's how Grab quietly became the dominant everyday app across Southeast Asia, serving more than 52 million users a month in eight countries. And that's where we see the potential upside for investors and an app revolution for all of us because the real story here goes beyond those rides and food delivery. It's what comes next. That's because every delivery creates another payment. Every payment creates another financial relationship. Once customers trust the app with their payments, Grab becomes a digital wallet, consumer loans, merchant financing, the entire financial ecosystem. Then comes advertising, a $32 billion market in Southeast Asia and $260 billion market in the United States. Once millions of consumers and businesses are using the same platform every day, advertisers pay big money to reach those customers at exactly the right moment. That ad revenue comes at a much higher profitability than the transportation or delivery, creating another engine for long-term growth. And that is why Grab is approaching a huge inflection point. Most investors, if they've ever even seen the stock, can still think they're buying a ride-sharing company. In fact, they're buying the foundation for a super app. The recent Foodpanda acquisition proves this out and strengthens that positioning, adding restaurants, merchants, and customers in a $40 billion market across Taiwan. Every new customer makes the platform more valuable for drivers, merchants, and advertisers, creating that flywheel that becomes impossible for competitors to match. And the amazing part here is the numbers suggest that transition has already started. Grab is no longer just growing because it's giving away either cheap rides or subsidizing food delivery like every app did during the cheap money bubble years. This is now a business doing almost a billion dollars in quarterly revenue, still growing fast, and now leveraging that up into profits. Revenue here jumped 24% in the first quarter to $955 million with gross merchandise volume, that GMV, the key metric for e-commerce, that total dollars spent on the platform, also growing 24% to 6.1 billion. That means customers are spending more across the platform, not just downloading the app and forgetting about it like the 12 fitness apps I've installed and used exactly once. A profits measured by EBITDA, that's earnings before interest, taxes, and depreciation, increased 46% to $154 million. Actual cash flow generation expanded at $489 million in the last 12 months. That is a critical shift. Grab isn't just growing anymore. It's starting to turn that growth into cash. But the real super app signal isn't its financial services. This is where Grab stops becoming an Uber and starts becoming something much bigger. Financial services revenue jumped 43% last quarter and the gross loan portfolio exploded 130% to $1.4 billion. Loan disbursals grew 67% and crossed the $1 billion for the first time in a single quarter. That's important because more loans means more interest income, one of the most profitable segments for the company. That's not a side project anymore. That is a financial layer of the app starting to scale. Think about how that creates the flywheel here. A customer uses Grab for rides, then food, then groceries, then payments, maybe insurance or a loan. A merchant uses Grab for delivery, then payments, then advertising. Every service adds another reason to stay inside this ecosystem. That's why 52 million monthly users matter so much. Grab isn't trying to acquire new customers from scratch for every product. It is cross-selling more services to people already using the app and doing it at a higher profitability for each one. And management is guiding for that momentum to continue with 2026 revenue guidance to as high as $4.1 billion, 22% growth from last year, and EBITDA profits higher than 700 million for 40% upside growth. So, what you realize is this isn't just another growth stock story. This is a regime change in mobile apps. Grab has already built to the user base, already built that habit, is now just layering higher margin businesses on top of that platform. Where this goes from here is much more than the investment upside, which I'm going to detail with price targets next, but in three possible scenarios for the company. The first here is the simplest. Grab continues doing exactly what it's doing today, dominating that Southeast Asia market. That's already a region of more than 700 million people with rising incomes, growing smartphone adoption, and one of the fastest-growing digital economies in the world. If Grab simply keeps adding users, expanding financial services, and growing advertising revenue, it still becomes one of the region's defining technology companies without ever leaving Southeast Asia. But, that's not actually my base case. My base case is that Grab eventually exports its super app platform. And think about it. Every major technology platform starts by dominating one market. Amazon mastered US online retail before expanding into Europe, Asia, and beyond. Spotify built its model in Scandinavia and Europe before becoming a global music giant. And that playbook is simple. Dominate one region, perfect the model there, and then expand. When you've created something with super app potential, why would Grab stop at just Southeast Asia? And in fact, it's already proving this expansion scenario. Starting in Malaysia, it moved quickly through the region over the next several years, and recently expanding its reach through the Foodpanda Taiwan acquisition, adding another major market, more restaurants, more merchants, and millions of additional users to the ecosystem. This is how platform businesses grow, one market at a time, and layering on that scale before moving on to the next. If Grab can prove that super app model works across multiple countries, there is no reason it stops in one region. But then the third scenario is where it becomes exciting for all of us. Imagine opening your phone in New York, Miami, or LA, and using the same app to order dinner, pay your rent, book a ride, or even get a loan. That is not science fiction. It's already happening every day across Southeast Asia. Now, this one does have the longest odds, but one nobody can ignore. What if Uber decides it's just easier to buy the future than build its own? Uber dominates mobility across the US, but robotaxis could reshape its economics over the next decade. But Grab has already built something that is insulated from this, a true consumer ecosystem combining transportation, delivery, payments, lending, and ads. Acquiring Grab wouldn't just add another region for Uber. It could instantly give the company a blueprint for becoming the first global super app. Oh, again, I think that international expansion is the most likely scenario here. Maybe after another year or two of expanding through its region, but which do you think is most likely? A Southeast Asia only, international expansion, or Grab eventually being acquired? So, let me know in the comments. Now, I don't own Grab shares just because I expect that acquisition as a sure thing. I own it because it could be an explosive return even without it. One thing that gives me more confidence in this investment is that I'm not the only one becoming more optimistic on Grab. Wall Street has started to catch on, but I actually think they're still thinking too small. Right now, analysts have an average one-year price target of $6.10 a share. That's about 55% upside from today's price. Even the most bearish analyst though still expects the stock to climb to $4.50, roughly 14% above where it trades today. And on that bullish end, the highest target sits at $8 a share, more than 100% upside over the next 12 months. Those are impressive numbers for a company that's already worth about 15 billion. But here's why I don't think even those targets tell the full story. Every one of those forecasts is only looking one year ahead. Analysts are trying to estimate next year's revenue, next year's EBITDA, and then next year's earnings. That's their job. But folks, some of the biggest investment winners in history weren't created because investors perfectly predicted the next year's earnings. They were created because investors recognized a business model that could become dramatically more valuable over the next decade or more. That's the opportunity here I think Grab represents. Again, if Grab simply continues executing, expands their financial services, grows its advertising business, and leverages that 52 million monthly transacting users, I think this market eventually stops valuing it like a ride-sharing company, starts valuing it like the next consumer tech platform. Oh, again though, my own base case goes beyond Southeast Asia. I believe the company eventually exports that super app model into additional international markets. If that happens, Grab isn't just competing for ride-sharing revenue anymore. It's competing across mobility, deliveries, payments, lending, and advertising. A combination of businesses that could support the company well over a $150 billion market cap. That is where you go from a 55% one-year return to average forecast into a nine times your money return over time. Now, that's not something that happens in 1 year or even the next two, but you get there with solid growth that develops over that time. But, don't think there aren't risks here. Okay, no investment with nine X potential is without risk. And in fact, the very thing that makes me most excited about Grab, that international expansion scenario, is also the biggest challenge to the investment case. That's because Grab has already proven it can build a dominant platform in mobility and deliveries, and it's extending that advantage into financial services and advertising. It doesn't have a competition problem because there's no single app that can compete with it. But, it could have a bigger problem in just getting the permission to operate that. That's where we start to see potential competitors seeing it coming. Banks, ride-share networks, delivery services, they're going to be pushing the government in their own markets to enforce every regulation possible to limit Grab in its expansion. Every country has its own transportation rules, banking regulations, digital payment laws. Expanding into new markets isn't as simple as just translating the app into another language. It's about getting through the layers of bureaucracy and the good old boys network of existing businesses. And that's where we see one of the reasons Grab has entered into new markets through those acquisitions, like Foodpanda in Taiwan, rather than just starting from scratch. But, it does mean that the biggest risk here is that regulatory pace. Not necessarily that I think Grab is going to be outright stopped from expanding, but that it will be slowed down. History shows us that consumers will gravitate to the products that save their time, lower costs, and make life easier. Grab has that with the super app model, creating value for users, merchants, and advertisers. So, that economic potential wins out in the end. It just isn't without a rocky road along the way. And while I think Grab is a stock investors can own for years, building to that real potential, there may also be a shorter-term opportunity developing. The company reports earnings August 10th, and I think Wall Street is still underestimating just how quickly this business is improving. Management has already guided for more than 20% revenue growth and 40% profit growth this year, but we're seeing clues form that could move even those expectations higher. First, Grab is beginning to benefit from the consolidation of its super bank business, which should further strengthen its financial services segment. Second, lower fuel prices could provide another tailwind here. Even when fuel costs were much higher, Grab's mobility business was up 32% last quarter. If those costs remain low, or profitability could improve even faster than analysts expect. And what's interesting here is the stock market doesn't appear to be expecting anything at all. Over the last two earnings reports, Grab shares moved less than 2% after reporting its earnings. Options pricing isn't expecting any move coming up. That tells me that investors have just become complacent. I think that's a big mistake and a big opportunity. Now, again, most investors should probably just focus on that long-term story. If this really does become the next great super app, nobody is going to complain about making several times their money over the next decade. But if I am right about this upcoming earnings report, there may also be an opportunity to profit from a much shorter-term move. And that's why I'm also using one of my favorite options strategies, the call spread. This is where you buy one call option, sell another one to offset some of that cost, and leverage a small upside in the stock to a much higher return. I can go into the options available for Grab expiring in January. And I'll buy the $3.50 strike calls for 91 cents each, while at the same time selling the $4.50 strike calls for 48 cents each. That means my total cost is just 43 cents a share, and I break even with the stock right at its current price. Understand, this is a much riskier strategy than just holding the stock for the long term. If the stock does fall over the next 6 months, I could lose that entire 43 cents per share if it falls below $3.50 a share. I don't think that happens. In fact, I think it's very likely the stock closes above that $4.50 strike price and I'll make $0.57 per share or a profit of 132% in just 6 months. That is more than double my money and the stock only has to go up 14% to get it. Now folks, I know options investing can seem like a foreign language, but if you're not using these to not only increase your returns, but also lower your risk and create income, you are missing out on one of the best investing tools. Options are how long-time Bow Tie brother George made $26,000 on SMCI, a return of 315% in just 2 weeks. And how Justin made a 380% return on a call option strategy in 1 week. I showed you right here on the channel in May how to use the same option strategy on Campbell's that made us a 366% return. To help you get started, I'm relaunching our ultimate options course. Over 3 hours of video, I start with the basics then walk you through 29 option strategies, when to use each, and how to set it up including a real-world example with shares of Tesla. The course also comes with a one-of-a-kind strategy finder to help you find the right option strategy and an options calculator to show you exactly what to expect. Right now, I'm relaunching the course at a 38% discount. Save $150 off. You're going to get all the basics to get you started, the strategy finder to make sure you're using the best strategy, the options calculator to show you exactly how much you can make, walk-throughs on all 29 strategies, and a 14-day money-back guarantee. And that $150 launch discount is only available with the coupon code and the link I'll leave in the description below. So, look for that or just scan the QR code here. Don't miss that $150 discount and get everything you need to start investing in options, all with a 14-day money-back guarantee. Don't forget to join the Let's Talk Money community by tapping that subscribe button and clicking the bell notification.