Goldman Sachs’ Best Hedge Fund Stock Picks: Top 20 Stocks

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

Number of Hedge Fund Investors in Q2 2024: 145

GS’ Number Of Funds: 28

Uber Technologies, Inc. (NYSE:UBER) is a ride hailing services provider that has significantly expanded its business over the course of the past couple of years. The first mover in the multi billion dollar industry, Uber Technologies, Inc. (NYSE:UBER)’s hypothesis now rests on its ability to grow its product and service portfolio and capture new and upcoming markets such as self driving cars. Tesla’s plans for a Robotaxi, a service that enables Tesla owners to autonomously generate revenue from their cars by signing them up for ride hailing has captivated investors for years, and Uber Technologies, Inc. (NYSE:UBER)’s existing platform strength offers it a key advantage in this sector. On this front, the firm announced a partnership with GM in August to use the latter’s Cruise platform for an autonomous vehicle partnership. Expected to roll out in Uber Technologies, Inc. (NYSE:UBER)’s fiscal year 2025, the move carries the potential to expand revenues for the firm, but simultaneously, Uber Technologies, Inc. (NYSE:UBER) could also take brand damage if GM’s Cruise vehicles continue to struggle as they have in the past.  GM could also decide to move to an in house service in the future, and other growth initiatives by Uber Technologies, Inc. (NYSE:UBER) include its BUsiness service for high end users and Moto and UberX Share for others.

RiverPark Advisors mentioned Uber Technologies, Inc. (NYSE:UBER) in its Q1 2024 investor letter and shared:

“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.”