In this article, we will discuss the 5 tech stock picks from Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management. If you want to read our detailed analysis of Immerman and Schiffman’s history, investment philosophy, and hedge fund performance, go directly to the 10 Tech Stock Picks from Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management.
5. Uber Technologies, Inc. (NYSE:UBER)
Immerman and Schiffman’s Stake Value: $211,649,000
Percentage of Andrew Immerman and Jeremy Schiffman’s 13F Portfolio: 4.55%
Number of Hedge Fund Holders: 135
Uber Technologies, Inc. (NYSE:UBER) is a ride-hailing firm that also provides package delivery, food delivery, freight transportation and couriers services. It was incorporated in 2009 and stands fifth on the list of 10 tech stock picks from Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management. Uber Technologies, Inc. (NYSE:UBER) currently has a market capitalization of $74.9 billion.
On September 13, Goldman Sachs analyst Eric Sheridan initiated coverage of Uber Technologies, Inc. (NYSE:UBER) with his “Buy” rating and gave his price target of $64.
Palestra Capital Management holds 4.22 million shares in Uber Technologies, Inc. (NYSE:UBER), worth $211.65 million, representing 4.55% of their investment portfolio. The hedge fund has increased its stake in Uber Technologies, Inc. (NYSE:UBER) by 5% in the second quarter of 2021. There were 135 hedge funds in our database that held stakes in Uber Technologies, Inc. (NYSE:UBER) in the second quarter of 2021, compared to 130 funds in the previous quarter.
RiverPark Funds, in its second-quarter 2021 investor letter, mentioned Uber Technologies, Inc. (NYSE:UBER). Here is what the fund said:
“UBER was our top detractor for the quarter. Delivery growth remains strong, and ride sharing has started to recover, though still down year over year (vs. pre-COVID results). Gross bookings grew 24% year over year, driven by 166% Delivery growth.
Despite the COVID disruption, 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 (64% of 1Q21 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 ondemand services, such as grocery delivery, truck brokerage and worker staffing for shift work. Its New Verticals (non-food delivery such as grocery, convenience, and alcohol) business hit a $3 billion annualized run rate in March, up 77% quarter over quarter.
UBER, at its current $91 billion market capitalization, trades at 4x next year’s revenue from its two core businesses. Additionally, the company has substantial, unrecognized, value in its several nascent development businesses and another $13 billion in equity stakes in synergistic businesses around the world.”
