Top 5 Stocks to Invest in According to John Smith Clark’s Southpoint Capital Advisors

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

Southpoint Capital Advisors’ Stake Value: $270.6 million

Percentage of Southpoint Capital Advisors’ 13F Portfolio: 4.68%

Number of Hedge Fund Holders: 135

Inaugurated in 2009 and rooted in San Francisco, California, Uber Technologies, Inc. (NYSE: UBER) places second on our list of top stocks to invest in according to John Smith Clark’s Southpoint Capital Advisors.

As of the second quarter, 135 hedge funds out of the 873 funds tracked by Insider Monkey held stakes in the company worth $10.4 billion in contrast to the 130 hedge funds with $10.5 billion worth of stakes in the previous quarter. With a stake of $1.2 billion, Brad Gerstner’s Altimeter Capital Management is the company’s biggest stakeholder.

Here is what RiverPark Funds has to say about Uber Technologies, Inc. in its Q2 2021 investor letter:

“UBER was our top detractor for the quarter. Delivery growth remains strong, and ride sharing has started to recover, though still down year over year (vs. pre-COVID results). Gross bookings grew 24% year over year, driven by 166% Delivery growth.

Despite the COVID disruption, 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 (64% of 1Q21 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 ondemand services, such as grocery delivery, truck brokerage and worker staffing for shift work. Its New Verticals (non-food delivery such as grocery, convenience, and alcohol) business hit a $3 billion annualized run rate in March, up 77% quarter over quarter.

UBER, at its current $91 billion market capitalization, trades at 4x next year’s revenue from its two core businesses. Additionally, the company has substantial, unrecognized, value in its several nascent development businesses and another $13 billion in equity stakes in synergistic businesses around the world.”