We recently published a list of 10 Stocks on Analysts’ Radar Amid Tariff Turbulence. In this article, we are going to take a look at where Uber Technologies (NYSE:UBER) stands against other stocks on analysts’ radar amid tariff turbulence.
Dan Niles, Niles Investment Management founder, predicted in a CNBC program earlier this month that unlike previous market crashes, the latest market volatility of 2025 could see a quick resolution because it was “self-inflicted.”
“Unlike prior drawdowns that you’ve seen, like the global financial crisis, you’re not going to fix the problem in a day because you’ve accumulated tons of bad mortgages. You’re not going to fix COVID because it’s a global pandemic in a day. You’re not going to fix the tech bubble meltdown because you overinvested for 5 years back in the late 1990s. This you can literally fix overnight if everybody, you know, resettles the tariffs because this is a self-inflicted wound.”
However, this does not mean Niles is bullish on the market in the long term. He still has valuation concerns and reiterated that he entered the year with cash as his biggest holding. Niles said his top five picks do not include any of the Mag. 7 companies, and he would remain cautious on valuations:
Asked about his preferences in the current market environment, the analyst warned investors to steer clear of high valuations and big promises that lie far into the future:
“I would focus on is which companies are generating a lot of cash, which ones tend to pick up market share during recessions. Those are the types of names that you want to be in because if you’re in stuff where, well, you know 10 years from now it’s going to be a big market, you’re going to get absolutely murdered if you get into a recession,” Niles said.
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For this article, we picked 10 stocks Wall Street analysts have been focusing on. With each stock, we have mentioned its hedge fund sentiment. 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).
Uber Technologies (NYSE:UBER)
Number of Hedge Fund Investors: 166
Jim Cramer in a recent program on CNBC discussed why the market reaction was wrong on Uber Technologies (NYSE:UBER)’s last quarterly results and explained the reasons why he remained positive on the company:
“Uber Technologies up more than 24% for the year, making it the fifth best performer in the S&P. About a month and a half ago, I stuck my neck out and defended Uber after it reported a widely panned quarter. Stock fell 7.5% in a single session. That seemed wrong to me. Turned out to be a very good call. It’s rallied quick 10 bucks in. Now, what made me confident enough to risk my neck on Uber? Well, in management’s own words, it was their quote “strongest quarter ever” end quote, with record tips, gross bookings, and adjusted EBITDA. Gross bookings were particularly impressive, up 21% year-over-year. I couldn’t believe why the stock was going down. Monthly active platform customers were up 14%. Total trips are up 18%. The rideshare business is booming. While Uber’s freight segment—that is their smallest, by the way—did have a gross bookings miss, the company’s two main businesses, mobility (meaning ride-sharing) and delivery (meaning Uber Eats), both beat expectations for gross bookings.
Even though there was some nitpicking on the guidance for the current quarter, I said that that it wasn’t enough to justify the stock’s vicious 7.5% selloff. Sure enough, over the next three days, Uber immediately shot up nearly 22%. Clearly, someone got it wrong when they were selling. The stock’s fared pretty well since then too.”
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 4th on our list of stocks on analysts’ radar amid tariff turbulence. While we acknowledge the potential of UBER, our conviction lies in the belief that under the radar 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 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.