10 Best TaaS Stocks to Invest in According to Hedge Funds

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

Number of Hedge Fund Holders: 136

Uber Technologies, Inc. (NYSE:UBER) is engaged in developing and operating proprietary technology applications. The company operates via 3 segments: Mobility, Delivery, and Freight. The company operates a multisided platform that connects riders seeking transportation with drivers providing their services. The company eliminates the need for vehicle ownership among consumers, providing flexible and cost-effective mobility options.

Wall Street analysts opine that Uber Technologies, Inc. (NYSE:UBER)’s mobility (ride-hailing) and delivery (food and retail delivery) businesses should continue to demonstrate resilience and expansion as a result of expected growth in gross bookings. Expansion of new verticals and into new markets (freight services and healthcare transportation), integration of advanced technologies (such as Al and data analytics, and AVs), and expansion of core ride-hailing business are some of the factors likely to support gross bookings.

Uber Technologies, Inc. (NYSE:UBER) remains focused on suburban areas, where it expects potential for increased service reliability and demand attraction. This strategy emphasizes capturing a larger share of the transportation market beyond urban centers. Furthermore, the company remains focused on its autonomous vehicle strategy. This has evolved from developing its own AV capabilities to establishing partnerships with leading AV companies. As a result, Uber Technologies, Inc. (NYSE:UBER) can potentially benefit from AV advancements without bearing the impact of cost and risk of in-house development.

Uber Technologies, Inc. (NYSE:UBER)’s extensive user base and platform should make it an attractive partner for AV technology providers planning to deploy their vehicles at scale. Raymond James initiated a coverage on the shares of Uber Technologies, Inc. (NYSE:UBER) on 24^th September. They gave a “Strong-buy” rating and a $90.00 price target.

While we acknowledge the potential of UBER as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than UBER but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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