3. Uber Technologies, Inc. (NYSE: UBER)
Pritzker’s Stake Value: $68,785,000
Percentage of Nicholas J. Pritzker’s 13F Portfolio: 19.86%
Number of Hedge Fund Holders: 130
Uber Technologies, Inc. (NYSE: UBER) develops and operates unique technological applications. The company was founded in 2009 and stands third on the list of 8 best stocks to buy according to billionaire Nicholas J. Pritzker. The shares of Uber surged 34.59% in the past 12 months.
On July 28, Uber (NYSE: UBER) and FTD announced an exclusive agreement to deliver on-demand flowers to Uber and Uber Eats customers across the United States. Uber’s collaboration with FTD is part of the company’s effort to expand its on-demand offerings beyond ride-sharing.
The hedge fund chaired by Nicholas J. Pritzker holds 1.26 million shares in Uber (NYSE: UBER) worth over $68 million. Tao Capital’s stake in Uber shares decreased by 40% in the past few months. Out of the hedge funds being tracked by Insider Monkey, Broad Peak Investment Holdings is a leading shareholder in Uber with 2.58 million shares worth more than $129 million. Based on our calculations, Uber (NYSE: UBER) ranks 11th in our list of the 30 Most Popular Stocks Among Hedge Funds.
RiverPark Advisors, LLC, in its quarter-four 2020 investor letter, mentioned Uber (NYSE: UBER). Here is what the fund has to say about Uber in its letter:
“UBER was also a strong contributor, as shares rallied following the approval of California’s Proposition 22 by voters, allowing the company’s California-based drivers to remain independent contractors (rather than become more expensive employees). We believe this news is not just about the 10%-15% of Uber’s revenue tied to California, but the influence this will have on other states reassessing driver pay. UBER also reported strong third-quarter results with Delivery Gross Bookings growing 135% year-over-year, which nearly fully offset a reduction in Mobility Gross Bookings, which were down 50% year over year. Total Gross Bookings for the quarter were down only 10% year over year as compared with down 35% last quarter.
Despite the COVID disruption, UBER remains the undisputed global leader in ride-sharing (44% of the Company’s third quarter revenue), with greater than 50% share in every major region in which it operates. The company is also a leader in food delivery (46% of revenue), where it is number one or two in the more than 25 countries in which it operates. We view UBER as more than just ride sharing and food delivery, but also as a global mobility platform with the ability to sell to its more than 100 million users (by comparison, Amazon Prime has 130+ million members) and penetrate new markets of on-demand services, such as grocery delivery, truck brokerage and worker staffing for shift work. At its current $96 billion market capitalization, UBER trades at only 6x next year’s revenue from its two core businesses. Additionally, the company has substantial, seemingly unrecognized, value in its several nascent development businesses and another $12 billion in equity stakes in synergistic businesses around the world.”
