RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds released its “RiverPark Large Growth Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, markets performed well, and the S&P 500 index (“S&P”) and the Russell 1000 Growth Index returned 8.7% and 12.8%, respectively. The RiverPark Large Growth Fund Institutional and Retail shares also performed well in the quarter returning, 13.2% and 13.2%, respectively. The macroeconomic environment continued to support the portfolio beyond the company-specific news. In addition, please check the fund’s top five holdings to know its best picks in 2023.
RiverPark Large Growth Fund highlighted stocks like Uber Technologies, Inc. (NYSE:UBER) in the second quarter 2023 investor letter. Headquartered in San Francisco, California, Uber Technologies, Inc. (NYSE:UBER) develops and operates technology applications that operate through Mobility, Delivery, and Freight segments. On September 5, 2023, Uber Technologies, Inc. (NYSE:UBER) stock closed at $46.55 per share. One-month return of Uber Technologies, Inc. (NYSE:UBER) was 5.53%, and its shares gained 55.01% of their value over the last 52 weeks. Uber Technologies, Inc. (NYSE:UBER) has a market capitalization of $95.126 billion.
RiverPark Large Growth Fund made the following comment about Uber Technologies, Inc. (NYSE:UBER) in its Q2 2023 investor letter:
“Uber Technologies, Inc. (NYSE:UBER): UBER was a top contributor for the quarter following better than expected 1Q23 earnings and 2Q23 guidance. Gross bookings of $31.4 billion were up 22% year over year. Mobility gross bookings of $15 billion grew 44% over the last year driven by a combination of product innovation and driver availability. Delivery gross bookings, also $15 billion, were up 12% from last year and accelerated through the quarter. 1Q Adjusted EBITDA of $761 million, up $593 million year over year, significantly beat management’s $660-$700 million guidance and the company generated $549 million of free cash flow versus a loss last year. Management guided to continuing growth in 2Q Gross Bookings (13%-17% growth) and Adjusted EBITDA (of $800- $850 million).
UBER remains the undisputed global leader in ride sharing, with a greater than 50% share in every major region in which it operates. The company is also a leader in food delivery, where it is number one or two in the more than 25 countries in which it operates. Moreover, after a history of losses, the company is now profitable, delivering expanding margins and substantial free cash flow. 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 130 million users (by comparison, Amazon Prime has 200 million members) and penetrate new markets of on-demand services, such as package and grocery delivery, travel, truck brokerage (the company had $1.4 billion in Freight revenue for 1Q23), and worker staffing for shift work. Given its $4.2 billion of unrestricted cash and $5 billion of investments, the company today has an enterprise value of $84 billion, indicating that UBER trades at 20x next year’s estimated free cash flow.”
Photo by Paul Hanaoka on Unsplash
Uber Technologies, Inc. (NYSE:UBER) is in 9th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 144 hedge fund portfolios held Uber Technologies, Inc. (NYSE:UBER) at the end of second quarter which was 144 in the previous quarter.
We discussed Uber Technologies, Inc. (NYSE:UBER) in another article and shared the list of top growth stocks in Ken Fisher’s portfolio. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
