Goldman Sachs’ List Of Stocks That Hedge & Mutual Funds Love & Hate: 28 Stocks On The Mutual and Hedge Funds Radar

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

Number of Hedge Fund Holders In Q2 2024: 145

Category: Most popular with HFs and overweight among mutual funds

Uber Technologies, Inc. (NYSE:UBER) is the dominant player in the US ride sharing industry. According to Bloomberg, the firm commanded 76% of US ride sharing spending as of March 2024, for a wide lead over its closest rival Lyft’s share of 24%. Its commanding presence means that Uber Technologies, Inc. (NYSE:UBER) enjoys a wide moat both in terms of the number of users that it can reach and also through brand recognition. These advantages can prove to be quite important in the next phase of ride sharing, a.k.a., automation. Autonomous ride sharing is all the hype in the technology industry these days, and Uber Technologies, Inc. (NYSE:UBER) has already joined forces with General Motors to launch a program in 2025. The firm is also aggressively expanding and targeting growth markets such as urban air mobility and has piloted a New York airport shuttle service.

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.”