5 Undervalued Stocks Hedge Funds Are Talking About

2. Uber Technologies, Inc. (UBER)

RiverPark Large Growth Fund, in its Q4 2021 investor letter, mentioned Uber Technologies, Inc. (NYSE: UBER) and discussed its stance on the firm. Uber Technologies, Inc. is a San Francisco, California-based transport company with a $71.8 billion market capitalization. UBER delivered a -11.64% return since the beginning of the year, while its 12-month returns are down by -36.75%. The stock closed at $37.05 per share on February 4, 2022.

Here is what RiverPark Large Growth Fund has to say about Uber Technologies, Inc. in its Q4 2021 investor letter:

“Uber: UBER shares were under pressure throughout 2H21 despite the fact that delivery growth remains strong and ride sharing has begun to recover. Gross bookings in the company’s most recently reported quarter doubled to 57% year over year, driven by 50% Delivery growth and 67% Rides 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 (56% of 3Q21 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.

UBER, at its current $85 billion market capitalization, trades at just over 3x next year’s revenue from its two core businesses. Additionally, the company has substantial, unrecognized, value in its several nascent development businesses and another $12 billion in equity stakes in synergistic businesses around the world.”

Our calculations show that Uber Technologies, Inc. (NYSE: UBER) ranks 7th on our list of the 30 Most Popular Stocks Among Hedge Funds. UBER was in 143 hedge fund portfolios at the end of the third quarter of 2021, compared to 139 funds in the previous quarter. Uber Technologies, Inc. (NYSE: UBER) delivered a -21.49% return in the past 3 months. In January 2022, we also shared another hedge fund’s views on UBER in another article.