We recently published a list of Top 10 Trending Stocks as AI Hype Fades. In this article, we are going to take a look at where Uber Technologies, Inc. (NYSE:UBER) stands against other top trending stocks as AI hype fades.
The US stock market took a major hit recently due to tariff-related uncertainties and a broader concern about AI stock valuations. Jeff Sonnenfeld, Yale School of Management senior associate dean for leadership studies, recently talked about the latest data showing a decline in CEO sentiment amid President Donald Trump’s tariff policies.
“We’re seeing with the CEO community, it’s not just the report you had this morning on the plunge in retail sentiment, the plunge in consumer sentiment, and CEO confidence indices by other indices such as Chief Executive Magazine. But we had 100 CEOs across sectors, 60% Republican, about 30% Democrat, 10% independent, and they were overwhelmingly discouraged. There’s a lot of goodwill that had been accumulated after the election. Even though most large CEOs didn’t support President Trump, they did rally and were encouraged to go down to Mar-a-Lago to talk about company-specific issues. The same thing happened in 2017. That goodwill dissipates quickly, and it’s happening right now. 85% think these tariff moves are a disaster, even though they’re in favor of tariffs. They want selective tariffs.”
With tariff deadlines fast approaching, it would be interesting to see how the market reacts to potential changes in President Trump’s policies and stance.
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For this article, we picked 10 stocks Wall Street analysts were discussing lately. With each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close up view of a hand holding a smartphone, using a ride sharing app.
Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Funds Investors: 136
Mark Mahaney from Evercore ISI recently made some bullish comments about Uber Technologies, Inc. (NYSE:UBER) during a program on CNBC:
“We didn’t have any at the beginning of this year, except for Uber. Uber was our top pick. I thought at 60 was the thing—it was way dislocated. Look, we had a two-and-a-half-year rally—super rally in the S&P 500, more so in NASDAQ, even more so in the internet large-cap names. That left very few compelling valuation startups at the end of the year. But, you know, you continue with a correction like this, you’re going to find really interesting aggressive price points. So I’m sticking with my two most interesting price points right here—Uber and Amazon.”
Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Uber Technologies, Inc. (NYSE:UBER) in its Q4 2024 investor letter:
“A rapidly evolving competitive environment for the nascent autonomous vehicle market caused investor angst for Uber Technologies, Inc. (NYSE:UBER) and the stock underperformed the market. On one hand, legacy auto provider General Motors announced plans to exit its robotaxi effort, Cruise, due to capital constraints and difficulty scaling the business. On the other end of the market, Alphabet, through its self-driving unit Waymo, announced plans to expand to different cities in the U.S. Waymo also announced entrance to the Japanese market through a partnership with local ride-hailing players, despite already having an established partnership with Uber. Tesla remains committed to building out its own autonomous fleet as well. The competitive environment may be shifting, but Uber still remains in the pole position due to its scale, at over 100 million customers, along with dominant market share in many markets and significant cash flow generation that can be used to reinvest in growth opportunities.”
Overall, UBER ranks 5th on our list of top trending stocks as AI hype fades. While we acknowledge the potential of UBER, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UBER but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
