5 Stocks to Buy Now According to Chet Kapoor’s Tenzing Global

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

Tenzing Global’s Holdings: $59.3 million

Percentage of Tenzing Global Portfolio: 20.06%

Number of Hedge Fund Holders: 143

Uber Technologies, Inc. (NYSE:UBER) is an American company known for its ridesharing application platform. Initially starting out as a service that connected riders with drivers, Uber Technologies, Inc. (NYSE:UBER) has diversified its services to several areas such as food delivery using aerial vehicles.

Uber Technologies, Inc. (NYSE:UBER) raked in $4.8 billion in revenue and -$1.28 in GAAP EPS for its Q3, beating analyst revenue estimates and missing the ones for EPS by a mile. Following the earnings results, Stifel reduced the company’s price target by $3 to $55, outlining that while the company is performing well, future estimates merit a small reduction.

Tenzing Global held 1.3 million Uber Technologies, Inc. (NYSE:UBER) during Q3 2021, which equaled $59.3 million and made up 20% of its portfolio. Of the 867 hedge funds part of a Q3 2021 Insider Monkey poll, 143 held a stake in the company.

Brad Gerstner’s Altimeter Capital Management is Uber Technologies, Inc. (NYSE:UBER)’s largest investor, through a $1 billion investment via 24.5 million shares.

ClearBridge Investments mentioned Uber Technologies, Inc. (NYSE:UBER) in its Q2 2021 investor letter, outlining that:

“The pandemic has also brought attention to the question of gig worker employment status for companies, including ClearBridge holdings Uber and Lyft. In the U.K., Uber proactively classified its drivers as “workers” ahead of final rulings from the British court system. The worker status in the U.K. is a designation between self-employed and employed status that entitles drivers to minimum wage, holiday pay and in some cases a pension.

ClearBridge has engaged with Uber on labor issues since its IPO, and we have given feedback over that time to the CEO, CFO, Chief Legal Officer and Investor Relations on labor relations as well as strategy and communications. Uber’s agreement on this designation is ahead of other competitors in the market and the legal mandate represents a step forward in the company’s thinking about labor. The agreement represents a short-term hit to earnings, yet in some ways it places Uber ahead of the market in its ability to balance labor and shareholder interests. Workers benefit from improved conditions, with new contributions amounting to roughly 3% of a driver’s earnings, while Uber establishes more certainty on costs and visibility into its regulatory environment and operation conditions in the future.”