2. Uber Technologies, Inc. (NYSE: UBER)
Number of Hedge Fund Holders: 135
Uber Technologies, Inc. (NYSE: UBER) is placed second on our list of 10 stocks Stanley Druckenmiller is dumping. The company owns and operates a ride hailing platform and is headquartered in California. Duquesne Capital first owned a stake in the ride-hailing company during the third quarter of 2020. It sold off the entire stake it had in the firm during the second quarter of 2021. The fund paid an estimated average price of $48.69 per share for the holding. At the end of June, the shares were trading at $50.12.
On August 23, investment advisory Mizuho reiterated a Buy rating on Uber Technologies, Inc. (NYSE: UBER) stock with a price target of $72, noting the firm had a strong case in a regulatory appeal, an application for which is due in the next two months.
Out of the hedge funds being tracked by Insider Monkey, California-based investment firm Altimeter Capital Management is a leading shareholder in the firm with 24 million shares worth more than $1.2 billion.
RiverPark Advisors, LLC, in its Q4 2020 investor letter, mentioned Uber Technologies, Inc. (NYSE: UBER). Here is what the fund has to say in its letter:
“UBER was also a strong contributor, as shares rallied following the approval of California’s Proposition 22 by voters, allowing the company’s California-based drivers to remain independent contractors (rather than become more expensive employees). We believe this news is not just about the 10%-15% of Uber’s revenue tied to California, but the influence this will have on other states reassessing driver pay. UBER also reported strong third quarter results with Delivery Gross Bookings growing 135% year-over-year which nearly fully offset a reduction in Mobility Gross Bookings, which were down 50% year over year. Total Gross Bookings for the quarter were down only 10% year over year as compared with down 35% last quarter.
Despite the COVID disruption, UBER remains the undisputed global leader in ride sharing (44% of the Company’s third quarter revenue), with greater than 50% share in every major region in which it operates. The company is also a leader in food delivery (46% of revenue), where it is number one or two in the more than 25 countries in which it operates. 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 100 million users (by comparison, Amazon Prime has 130+ million members) and penetrate new markets of on-demand services, such as grocery delivery, truck brokerage and worker staffing for shift work. At its current $96 billion market capitalization, UBER trades at only 6x next year’s revenue from its two core businesses. Additionally, the company has substantial, seemingly unrecognized, value in its several nascent development businesses and another $12 billion in equity stakes in synergistic businesses around the world.”
