In this article, we discuss the 5 best tech stocks to buy according to billionaire Ken Griffin. For Griffin’s investment philosophy and his comments on certain stocks, please see 10 Best Tech Stocks to Buy According to Billionaire Ken Griffin.
5. Uber Technologies, Inc. (NYSE: UBER)
Value: $518,494,000
Percent of Ken Griffin’s 13F Portfolio: 0.14%
No. of Hedge Fund Holders: 135
Uber is one of the best tech stocks to buy, based on billionaire Ken Griffin’s Q4 portfolio. Uber’s business Uber Eats is seeing record revenues worldwide as stay-at-home orders are continuing to fuel demand of the food delivery app. Recently, Jefferies initiated a Buy rating for the stock with a $75 price target. The firm believes Uber’s ride-sharing business will fully recover by 2023.
As of the end of the fourth quarter of 2020, Altimeter Capital Management owns 28.4 million shares of UBER worth $1.4 billion. UBER accounts for 13.4% of Altimeter Capital’s total portfolio. Uber ranks 12th in our list of the 30 Most Popular Stocks Among Hedge Funds.
In their Q4 2020 investor letter, RiverPark Advisors, LLC highlighted a few stocks and Uber Technologies Inc (NYSE:UBER) is one of them. Here is what the fund said:
“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.”
