RiverPark Funds, an investment management company, released its “RiverPark Large Growth Fund” third quarter 2022 investor letter — a copy of which can be downloaded here. For the quarter, the RiverPark Large Growth Fund (the “Fund”) lost 3.3% – a bit better than the S&P 500 (-4.9% for the quarter) and about in line with the Russell 1000 Growth index (-3.6% for the quarter). Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.
In its Q3 2022 investor letter, RiverPark Large Growth Fund mentioned Uber Technologies, Inc. (NYSE:UBER) and explained its insights for the company. Founded in 2009, Uber Technologies, Inc. (NYSE:UBER) is a San Francisco, California-based technology company with a $56.1 billion market capitalization. Uber Technologies, Inc. (NYSE:UBER) delivered a -32.36% return since the beginning of the year, while its 12-month returns are down by -38.37%. The stock closed at $28.36 per share on October 25, 2022.
Here is what RiverPark Large Growth Fund has to say about Uber Technologies, Inc. (NYSE:UBER) in its Q3 2022 investor letter:
“Uber was our top contributor for the quarter on better-than-expected 2Q results, and 3Q EBITDA guidance that was well ahead of Street estimates. The company reported 33% Gross Bookings growth from both the continued recovery of Mobility Gross Bookings, up 55% year over year, and the continuation of Delivery Gross Bookings growth, up 7% year over year. Overall, revenue grew 105% year over year to $8 billion, generating $364 million of adjusted EBITDA, up $873 million year over year. Management guided to 25%-30% gross bookings growth and adjusted EBITDA of $440-$470 million for 3Q. Significantly, FCF was positive at $382 million, up $780 million year over year, and remains on track to be positive for the year allowing the company to self-fund future growth.
UBER remains the undisputed global leader in ride sharing, with greater than 50% share in every major region in which it operates. The company is also a leader in food delivery, where it is number one or two in the more than 25 countries in which it operates. Moreover, after a history of losses, the company is now solidly profitable with the expectation of substantial margin expansion and free cash flow generation to come. We view UBER as more than just ride sharing and food delivery, but also as a global mobility platform with the ability to sell to its more than 120 million users (by comparison, Amazon Prime has 200 million members) and penetrate new markets of on-demand services, such as grocery delivery, truck brokerage (the company had $1.8 billion in Freight revenue for 2Q22), and worker staffing for shift work. Given its $10 billion of cash and investments against $9 billion of debt, the company today has an enterprise value of $57 billion indicating that UBER trades at only 1.5x next year’s estimated revenue.”
Our calculations show that Uber Technologies, Inc. (NYSE:UBER) ranks 8th on our list of the 30 Most Popular Stocks Among Hedge Funds. Uber Technologies, Inc. (NYSE:UBER) was in 129 hedge fund portfolios at the end of the second quarter of 2022, compared to 144 funds in the previous quarter. Uber Technologies, Inc. (NYSE:UBER) delivered a 25.76% return in the past 3 months.
In October 2022, we also shared another hedge fund’s views on Uber Technologies, Inc. (NYSE:UBER) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.
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Disclosure: None. This article is originally published at Insider Monkey.
