We recently published a list of 10 Best Growth Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Uber Technologies, Inc. (NYSE:UBER) stands against other best growth stocks to buy according to billionaires.
Can the Stock Market Have a Big Rebound?
The stock market has been on a rollercoaster ride for the past few weeks as the sentiment has quickly shifted from post-election bullishness to being priced in for a slow-down or a recession. The volatility can be estimated by the 19% decrease in the S&P 500 from its recent all-time high. To talk about the current market volatility and the way forward, Fundstrat’s Tom Lee joined CNBC for an interview. He noted that the market is currently pessimistic as recent data shows that they have priced in a 60% probability of a recession, however, it is essential to note that if the tariff situation de-escalates then the probability of a recession isn’t that high. As a result, Lee thinks that there is a big window of opportunity for stocks to rebound, however, this rebound is contingent on the path of tariff de-escalation.
While addressing the concerns that if the market is in a bear market, Lee noted that if we define a bear market by stocks grinding and losing money, then this has been happening since December 2024. However, if you define a bear market as unleashing a type of financial tightening that leads to a recession, the current market does not fit that criteria. Lee acknowledged that it does feel like a bear market for an average person.
Lee also talked about the viable investor strategy under the current circumstances. Firstly, he highlighted that people are fighting two brains at the moment, one is a tactical brain, where people want to know if this is the bottom and be convinced by seeing the stocks rally on bad news. On the other hand, there is the investor or the long-term brain, which suggests that people should have confidence in the US companies to navigate this volatility. Lee noted that he is a buyer of this volatility as he thinks that the de-escalation of tariffs will take place, which will result in a big rebound for stocks.
Our Methodology
To compile a list of the 10 best growth stocks to buy according to billionaires, we used the Finviz stock screener, Seeking Alpha, and Insider Monkey’s Billionaire database. Using the screener we aggregated a list of growth stocks that have grown their top-line by more than 30% over the past 3 years and sorted them by market cap. Next, we cross-checked each stock’s sales growth from Seeking Alpha and ranked the stocks in ascending order of the number of billionaire investors. Please note that we have also included the hedge funds sentiment around each stock, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close up view of a hand holding a smartphone, using a ride sharing app.
Uber Technologies, Inc. (NYSE:UBER)
3-Years Sales Growth: 36.07%
Number of Hedge Fund Holders: 166
Number of Billionaires: 22
Value of Billionaire Holdings: $1,715,739,984
Uber Technologies, Inc. (NYSE:UBER) is an international mobility technology company that operates in mobility, freight, and delivery services. It has operations in more than 70 countries around the world. On April 9, Needham analyst Bernie McTernan maintained a Buy rating on the stock.
The analyst based his bullish sentiment on various factors including its competitive advantage of shorter wait times to book rides. McTernan noted the company has a pricing advantage over its customers which is reflecting its market share. While the analyst acknowledged that the weaker Dollar has led to increased estimates for the company, the overall market conditions remain robust.
During the fiscal fourth quarter of 2024, Uber Technologies, Inc. (NYSE:UBER) grew its gross bookings by 18% year-over-year, taking its revenue up by 20% to reach $12 billion. Moreover, Hardman Johnston Global Equity Strategy in its Q4 2024 investor letter noted that the company has a 65% market share across all its categories. The fund sees sustained revenue growth for the company driven by its expansion and product innovation. It is one of the best growth stocks to buy according to billionaires.
Hardman Johnston Global Equity Strategy stated the following regarding Uber Technologies, Inc. (NYSE:UBER) in its Q4 2024 investor letter:
“During the quarter, we initiated three new positions in Lennar Corporation, Bank of America Corp., and Uber Technologies, Inc. (NYSE:UBER). Uber is a leading platform company that facilitates ride-hailing, food delivery, and freight booking services, which each represent large and underpenetrated markets. Uber is active in more than 10,000 cities and approximately 70 countries globally, and Uber is a market leader with more than 65% market share in nearly all ride-sharing regions in which it operates. Uber should continue to benefit from secular tailwinds, product innovation, expansion, and network effects. The cross-selling of the Uber One membership program should drive both loyalty and engagement. International markets represent half the business and continue to be an important growth driver. Overall, we see sustained healthy topline growth for the company over the next three years with some insulation to global economic trends.”
Overall, UBER ranks 2nd on our list of best growth stocks to buy according to billionaires. While we acknowledge the potential of UBER to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UBER but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
