Goldman Sachs’ Top Growth Investors: 34 Stocks With The Highest Investment For Growth

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

Growth Investment Ratio: 85%

Number of Hedge Fund Holders: 145

Uber Technologies, Inc. (NYSE:UBER) is the most widely used ride-sharing service in the US. It commands 76% of the American market, which provides it with a wide moat and strong brand leverage. Since it’s primarily a ride-sharing company, Uber Technologies, Inc. (NYSE:UBER)’s hypothesis depends on its bookings. The dependence is despite the fact that the firm has diversified its business into other areas such as food delivery and eagerly invests in growth opportunities such as urban air mobility and autonomous ridesharing. Consequently, bookings play a key role in Uber Technologies, Inc. (NYSE:UBER)’s hypothesis as they signal to investors that the firm continues to hold market share. The role of bookings was clear following the firm’s third-quarter earnings when its shares fell by more than 7% after Uber Technologies, Inc. (NYSE:UBER)’s bookings for the quarter missed analyst estimates. Growth in US consumer confidence and tapering inflation could help with bookings moving forward.

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.”