Cantor Fitzgerald’s Top Internet Stocks: Best Stocks To Buy According To $13.2 Billion Firm

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

Number of Hedge Fund Holders In Q2 2024: 145

Share Price Target Upside: 32%

Cantor’s Rating: Overweight

Cantor’s Share Price Target: $90

Uber Technologies, Inc. (NYSE:UBER) is one of the biggest ride sharing companies in the world. Its sizeable market share in the ride sharing market has allowed the firm to expand into tertiary markets such as food delivery where it is the second biggest player in terms of market share after DoorDash. Additionally, Uber Technologies, Inc. (NYSE:UBER), unlike Lyft, is also targeting two key high growth and technology driven initiatives that could bode well in the future. It has teamed up with Joby Aviation through a $125 million investment. Joby develops electric vertical take off and landing (eVTOL) aircraft, and Uber Technologies, Inc. (NYSE:UBER) has also teamed up with General Motors to use the latter’s autonomous cars to create a Robotaxi service. The latter deal could significantly improve Uber Technologies, Inc. (NYSE:UBER)’s margins, but it also comes with the risk of GM being an unreliable partner and choosing to part ways in the future. Cantor is wary of regulatory and technology risks for autonomous vehicles with respect to Uber Technologies, Inc. (NYSE:UBER), but it believes that the firm’s current market position can help it weather any such potential storms.

RiverPark Advisors mentioned Uber Technologies, Inc. (NYSE:UBER) in its Q1 2024 investor letter. Here is what the fund said:

“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 a ride sharing and food delivery service; we also see it as a global mobility platform with 142 million users (by comparison, Amazon Prime has 200 million members) and the ability to penetrate new markets of on-demand services, such as package and grocery delivery, travel, and hourly worker staffing. Given its $5.4 billion of unrestricted cash and $4.8 billion of investments, the company today has an enterprise value of $165 billion, indicating that UBER trades at 21x our estimates of next year’s free cash flow.”