1. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 129
Share Price as of October 26: $28.47
Uber Technologies, Inc. (NYSE:UBER) is one of the premier stocks for beginners to invest in. On October 19, Uber Technologies, Inc. (NYSE:UBER) announced that it has launched Uber Journey Ads, which will use first-party data and insights from Uber’s mobility and delivery businesses and place ads on the Uber and Uber Eats apps.
On October 24, Cowen analyst John Blackledge maintained an Outperform rating on Uber Technologies, Inc. (NYSE:UBER) but slashed the firm’s price target on the shares to $70 from $76. The analyst expects Uber Technologies, Inc. (NYSE:UBER)’s Q3 2022 Gross Bookings at the high end of the guidance, supported by the continuous recovery in Mobility and expansion of core EBITDA margins.
According to Insider Monkey’s data, Uber Technologies, Inc. (NYSE:UBER) was part of 129 hedge fund portfolios at the end of June 2022, compared to 144 funds in the preceding quarter. Ken Fisher’s Fisher Asset Management is the leading position holder in the company, with 24.5 million shares worth about $501 million.
Here is what RiverPark Large Growth Fund has to say about Uber Technologies, Inc. (NYSE:UBER) in its Q3 2022 investor letter:
“Uber was our top contributor for the quarter on better-than-expected 2Q results, and 3Q EBITDA guidance that was well ahead of Street estimates. The company reported 33% Gross Bookings growth from both the continued recovery of Mobility Gross Bookings, up 55% year over year, and the continuation of Delivery Gross Bookings growth, up 7% year over year. Overall, revenue grew 105% year over year to $8 billion, generating $364 million of adjusted EBITDA, up $873 million year over year. Management guided to 25%-30% gross bookings growth and adjusted EBITDA of $440-$470 million for 3Q. Significantly, FCF was positive at $382 million, up $780 million year over year, and remains on track to be positive for the year allowing the company to self-fund future growth.
UBER remains the undisputed global leader in ride sharing, with 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 solidly profitable with the expectation of substantial margin expansion and free cash flow generation to come. 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 120 million users (by comparison, Amazon Prime has 200 million members) and penetrate new markets of on-demand services, such as grocery delivery, truck brokerage (the company had $1.8 billion in Freight revenue for 2Q22), and worker staffing for shift work. Given its $10 billion of cash and investments against $9 billion of debt, the company today has an enterprise value of $57 billion indicating that UBER trades at only 1.5x next year’s estimated revenue.”
You can also take a look at 11 Best REIT Stocks To Invest In and Top Small Cap Stocks With Huge Growth Potential.
