We recently published a list of 7 Best Money Making Stocks To Buy Now. In this article, we are going to take a look at where Uber Technologies, Inc. (NYSE:UBER) stands against other best money making stocks to buy now.
The US markets have been on a stellar run over the past couple of years, with two-year gains of 53%. This is the best performance for the broad market index since the 66% rally between 1997 and 1998.
READ ALSO: 15 Stocks ChatGPT Predicts Could Make You Wealthy in 10 Years and 12 Best S&P 500 Stocks to Invest in According to Analysts.
The stock market has benefited from waning inflation, declining interest rates, and a resilient economy that has avoided recession. While continued growth is projected for 2025, analysts also warn of the rally having gone too far, with a correction in the offing this year. Moreover, the looming threat of fierce trade wars is already taking a toll on investor sentiment.
The broad market index fell for the fourth successive day on Tuesday, February 25, slipping 0.47% amid heightened concerns about economic growth and global trade. According to CNBC, investors are turning to US bonds, with treasury yield dropping below 4.3% to touch the lowest level since December.
The US president has announced that tariffs on Canada and Mexico will begin next month, ending the month-long suspension. The new administration also recently imposed additional 10% tariffs on Chinese goods and continues to warn the European Union of similar import taxes, citing the bloc’s treatment of Washington.
Protectionist policies have sparked market concerns about which countries will be next on the American president’s list, leaving several large multinationals unsure of how to plan. Past trends show that the broad market index dropped by 5% on days when the US, under Trump’s first stint as president, announced tariffs in 2018 and 2019. The index fell by a cumulative 7% when other countries imposed retaliatory tariffs.
The recent consumer confidence survey for February has added to the negative mood, with results coming in weaker than economists’ estimates and registering the largest deterioration since August 2021. This is the third straight monthly decline, pushing the index to 98.3%, its lowest since June 2024.
Stephanie Guichard, senior economist of global indicators at The Conference Board, stated the following about the dip:
Of the five components of the Index, only consumers’ assessment of present business conditions improved, albeit slightly. Views of current labor market conditions weakened. Consumers became pessimistic about future business conditions and less optimistic about future income. Pessimism about future employment prospects worsened and reached a ten-month high.
Methodology
For this article, we sifted through screeners to identify stocks with a market cap of over $2 billion (mid-cap or above), whose ROE was greater than 30%, and ROI of more than 25%, as of the close of business on February 25. From there, we selected the 7 stocks with the highest number of hedge fund investors, based on Insider Monkey’s database of over 1,000 prominent hedge funds 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)
Market Cap: $156.57 billion
ROE: 60.08%
ROI: 31.26%
Number of Hedge Fund Holders: 166
Uber Technologies, Inc. (NYSE:UBER) is an American transportation company that provides ride-hailing services, food delivery, courier services, and freight facilities. It enjoys a dominant position in the US ride-hailing marketplace, with a remarkable 76% share.
The global shift toward convenience and ride-hailing is driving strong growth for Uber Technologies, Inc. (NYSE:UBER), with several prominent investors piling into the stock. David Tepper significantly raised Appaloosa Management’s stake in UBER last quarter by 98%. The growing trend of autonomous driving could further drive long-term gains for investors.
Uber Technologies, Inc. (NYSE:UBER) reported strong financial results during its Q4 2024 earnings call on February 5, with gross bookings growing 18% year-over-year. The company’s quarterly revenue was up 20% from last year to $12 billion. Net income for the quarter stood at $6.9 billion, or $3.21 per share, improving from $1.4 billion, or $0.66 per share in Q4 2023.
The company’s share price has risen by over 26% so far in 2025. Wall Street analysts maintain a consensus Strong Buy rating for the stock and anticipate a further 20% uptick, on average, in the share price.
Andrew Arons, Founder and Managing Partner at Synergy Advisory Management Group expects Uber Technologies, Inc. (NYSE:UBER) shares to hit an all-time high within the next six months. Here is what he stated on a recent program on Schwab Network:
I think Uber stock is going to hit all-time highs. I would say probably within the next six months, we’ll see it reach all-time highs. I wouldn’t be surprised if it hits 100 this year. So yeah, I think they’re moving in the right direction. They are one of those stocks attracting a lot of money, and a lot of money is starting to flow into Uber. They’re also making some really nice partnerships, and I think that’s going to propel the stock.
Investor sentiment around the stock remains robust. According to Insider Monkey’s database for Q4 2024, 166 funds held a stake in the company, up from 136 at the end of the third quarter. Uber Technologies, Inc. (NYSE:UBER) is among the best money making stocks to buy now.
Overall, UBER ranks 6th on our list of best money making stocks to buy now. While we acknowledge the potential of 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 time frame. 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.
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Disclosure: None. This article is originally published at Insider Monkey.