Columbia Threadneedle Investments, an investment management company released its “Columbia Threadneedle Global Technology Growth Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The U.S. presidential election in Q4 2024 boosted U.S. equity markets, resulting in a strong year and overall positive year for global equities. The S&P 500 Index returned 2.41% during the quarter, and the index returned 25.02% for 2024. In the quarter, the fund returned 6.14% compared to the S&P Global 1200 Information Technology Index-net’s 3.72% return. Security selection drove the fund’s performance relative to the benchmark. In addition, you can check the fund’s top 5 holdings for its best picks for 2024.
In its fourth quarter 2024 investor letter, Columbia Threadneedle Global Technology Growth Strategy emphasized stocks such as Uber Technologies, Inc. (NYSE:UBER). Uber Technologies, Inc. (NYSE:UBER) develops and operates proprietary technology applications that operates through Mobility, Delivery, and Freight segments. The one-month return of Uber Technologies, Inc. (NYSE:UBER) was -7.08%, and its shares lost 5.69% of their value over the last 52 weeks. On March 10, 2025, Uber Technologies, Inc. (NYSE:UBER) stock closed at $73.06 per share with a market capitalization of $152.623 billion.
Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Uber Technologies, Inc. (NYSE:UBER) in its Q4 2024 investor letter:
“A rapidly evolving competitive environment for the nascent autonomous vehicle market caused investor angst for Uber Technologies, Inc. (NYSE:UBER) and the stock underperformed the market. On one hand, legacy auto provider General Motors announced plans to exit its robotaxi effort, Cruise, due to capital constraints and difficulty scaling the business. On the other end of the market, Alphabet, through its self-driving unit Waymo, announced plans to expand to different cities in the U.S. Waymo also announced entrance to the Japanese market through a partnership with local ride-hailing players, despite already having an established partnership with Uber. Tesla remains committed to building out its own autonomous fleet as well. The competitive environment may be shifting, but Uber still remains in the pole position due to its scale, at over 100 million customers, along with dominant market share in many markets and significant cash flow generation that can be used to reinvest in growth opportunities.”
A close up view of a hand holding a smartphone, using a ride sharing app.
Uber Technologies, Inc. (NYSE:UBER) is in 10th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 166 hedge fund portfolios held Uber Technologies, Inc. (NYSE:UBER) at the end of the fourth quarter compared to 136 in the third quarter. While we acknowledge the potential of Uber Technologies, Inc. (NYSE:UBER) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Uber Technologies, Inc. (NYSE:UBER) and shared the top stock picks from Mark Cuban’s stock portfolio. In addition, please check out our hedge fund investor letters Q4 2024 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.