Jim Cramer Talked About These 8 Stocks

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

Number of Hedge Fund Holders: 136

A caller noted that Uber Technologies, Inc. (NYSE:UBER) has been down and Cramer said:

“It is discouraging and I find that Uber, I personally think that a lot of it’s the chart, it looks like a terrible chart… People right now have decided that these companies are gonna get hurt by ride-sharing. I don’t believe that. I think that Uber’s attractive and it’s come down a lot and I do like it.”

Uber (NYSE:UBER) is a global leader in technology-driven mobility, delivery, and freight services, providing consumers with access to a range of transportation options and facilitating deliveries from various retailers. Despite facing recent challenges, including a pullback in stock value due to cautious near-term guidance and an ongoing Federal Trade Commission investigation into its Uber One subscription service, the company continues to see significant opportunities for growth.

The company has seen stronger growth in less dense areas, such as the suburbs and secondary cities, compared to core urban centers, particularly in Mobility and Delivery. The company started focusing on these areas with Delivery, where non-core cities make up the majority of the market and are growing faster than city centers. Management highlighted that this strategy is now expanding globally, and Uber sees significant growth potential in these less dense areas, which could drive growth for the core business in the next few years.

Additionally, Uber (NYSE:UBER) is working to increase user frequency, particularly through its Uber One membership program. As of the third quarter, over 25 million people have subscribed to Uber One, a 70% increase year on year. Members of the service also show significantly higher retention rates and tend to spend three times more than non-members.

More than 7.8 million people, including drivers, delivery workers, and shoppers, actively engage with its platform, further solidifying the company’s position as a key player in the transportation and logistics sectors.

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 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: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.