4. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders as of Q4: 166
Although Mark Cuban once had the opportunity to invest in Uber Technologies, Inc. (NYSE:UBER), he passed on it – a decision he regretted for at least nine years. Cuban had previously invested in Uber CEO Travis Kalanick’s first startup, Red Swoosh, but hesitated when Kalanick pitched the idea of Uber to him, citing concerns over regulatory battles with taxi associations and transportation authorities. After questioning Uber’s valuation, he never heard back from Kalanick, and the company was founded in 2009 and went on to revolutionize the transportation industry. Reflecting on his missed opportunity at the SXSW Conference in Austin, Texas in 2017, Cuban admitted that Kalanick’s willingness to challenge regulations ultimately led to Uber’s massive success. Acknowledging his mistake, Cuban emphasized that he now seeks bold, world-changing ideas, encouraging entrepreneurs to present disruptive innovations without fear of obstacles.
On February 05, 2025, Uber Technologies, Inc. (NYSE:UBER) reported its financial results for Q4 and the full year ending December 31, 2024, highlighting its strongest quarter to date. CEO Dara Khosrowshahi credited the company’s success to accelerated growth in monthly active platform consumers (MAPCs), trips, and gross bookings. He emphasized Uber’s ongoing innovation, particularly in autonomous vehicles, as a key driver of momentum heading into 2025. CFO Prashanth Mahendra-Rajah echoed this optimism, noting record-breaking demand in both Mobility and Delivery services. He stated that the company surpassed its three-year outlook for gross bookings, adjusted EBITDA, and free cash flow, and despite these strong fundamentals, the company still sees itself as undervalued, with plans to actively repurchase stock.
Uber Technologies, Inc. (NYSE:UBER)’s financial performance in Q4 2024 reflected this momentum, with trips increasing 18% year-over-year to 3.1 billion, averaging around 33 million trips per day. Revenue surged 20% from Q4 2023 to $12.0 billion, with Mobility and Delivery revenue climbing 23% to $10.7 billion. With strong demand across its services and a focus on long-term strategy, Uber continues to position itself for sustained growth in 2025 and beyond.
Ariel Appreciation Fund stated the following regarding Uber Technologies, Inc. (NYSE:UBER) in its Q4 2024 investor letter:
“During the quarter, we initiated three new investments, each in companies we have followed closely for a considerable time. At various points, we viewed them as missed opportunities; however, our experience with Mr. Market has taught us that patience often creates inevitable entry points. This quarter, some exciting opportunities presented themselves. The three investments are Amazon (NASDAQ: AMZN), Diageo (NYSE:DEO), and Uber Technologies, Inc. (NYSE:UBER). We will discuss each in detail below
At the halfway point of the year, Uber was one of the top-performing stocks in the S&P, and we couldn’t help but kick ourselves for having spent considerable time researching the company—demonstrating gen[1]uine interest—only to never invest a dime. By year-end, however, Uber’s stock had not only surrendered all its gains but had fallen even further. So, what changed? Hype, plain and simple. Specifically, hype surrounding fully autonomous vehicles (AVs).
While we are excited by the advancements toward full autonomy and have friends who rave about their experiences with Waymo, the narrative (there’s that word again!) surrounding the inevitability of AVs has become so pervasive that it’s taken on a life of its own in markets…” (Click here to read the full text)
