10 Best Growth Stocks To Buy Now According To Billionaire Ray Dalio

7. Uber Technologies, Inc. (NYSE:UBER)

Latest Fiscal Year Annual Growth Rate: 16.95%

Bridgewater Associates’ Q1 2024 Investment: $116 million

Uber Technologies, Inc. (NYSE:UBER) is the well known ride sharing and delivery services provider. Recent years have set it apart from rivals in both the food delivery and ride sharing space, as while rivals struggle to make a profit, Uber Technologies, Inc. (NYSE:UBER)’s 40% profit margin and 150% free cash flow growth during the first quarter have been the talk of the town. However, well known investors such as Ken Fisher have sold not only Uber Technologies, Inc. (NYSE:UBER) but also other stocks in the industry, hinting that perhaps there’s trouble brewing under the hood. While the moves could represent profit taking after a 62% share price jump over the past 12 months, it could also mean that investors are wary of the biggest threat to Uber Technologies, Inc. (NYSE:UBER) and the industry. This threat is legislation that forces the firm to treat its drivers as employees and leads to higher costs as Uber Technologies, Inc. (NYSE:UBER) is forced to pay higher salaries and provide benefits.

Fund RiverParkAdvisors is bullish on Uber Technologies, Inc. (NYSE:UBER) though. In its Q1 2024 investor letter, the fund shared:

UBER remains the undisputed global leader in ride sharing, with a greater than 50% share in every major region in which it operates. The company is also a leader in food delivery, where it is number one or two in the more than 25 countries in which it operates. Moreover, after a history of losses, the company is now profitable, delivering expanding margins and substantial free cash flow. We view UBER as more than a ride sharing and food delivery service; we also see it as a global mobility platform with 142 million users (by comparison, Amazon Prime has 200 million members) and the ability to penetrate new markets of on-demand services, such as package and grocery delivery, travel, and hourly worker staffing. Given its $5.4 billion of unrestricted cash and $4.8 billion of investments, the company today has an enterprise value of $165 billion, indicating that UBER trades at 21x our estimates of next year’s free cash flow.