10 Best Tech Stocks to Buy According to Brad Gerstner

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

Altimeter Capital’s Stake Value: $1,026,784,834

Number of Hedge Fund Holders: 130

Ride-hailing company Uber Technologies, Inc. (NYSE:UBER) ranks third on our list of the best tech stocks to buy according to Brad Gerstner. The stock accounts for nearly 16% of Altimeter Capital’s 13F portfolio.

Uber (NYSE:UBER) grew its gross bookings by 21% year-over-year and reported a 15% increase in customers. In the second quarter, the company expects a further 20% growth in gross bookings. Innovation is crucial to the success of Uber. Last year the company partnered with Waymo, to bring autonomous driving technology to UBER. Waymo provides autonomous vehicles to Uber for ride-hailing services. The company now offers autonomous deliveries in Phoenix, Arizona, Fairfax, Virginia, Miami, Los Angeles, Mountain View, California, and Tokyo in Japan. Uber Technologies, Inc. (NYSE:UBER) is also operating a pilot project in Phoenix, Arizona, and Las Vegas, for autonomous ride-hailing services.

While Uber’s (NYSE:UBER) management thinks autonomous vehicle (AV) technology holds promise, they believe the transition would be rather gradual and human drivers will co-exist with autonomous vehicles for a long time. However, as the technology matures and better models are built, AV fleet owners or individual car owners can achieve better returns on their investments by integrating their vehicles into Uber’s ecosystem, which offers a strong brand and established demand base. Uber stands to uniquely benefit from the growth of AV technology as it has worked to establish pricing, matching, routing algorithms, and payment systems, and these systems can increase the utility of autonomous vehicles in the ride-hailing industry.

At the close of Q1 2024, 130 hedge funds were bullish on Uber Technologies, Inc. (NYSE:UBER), with total stakes amounting to $10.18 billion. Wall Street analysts hold a consensus buy opinion on Uber. The stock grew by 20% year-to-date. Based on price targets from 52 analysts, the stock has a median price forecast of $88, representing an upside of 25% from its current price of $70.34.