UBS’ Top Tech Based Disruptive Stocks For 2030: Top 29 Stocks

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

Number of Hedge Fund Holders In Q2 2024: 145

Uber Technologies, Inc. (NYSE:UBER) is the largest ride sharing services provider in the US. The firm holds 76% of the US ride sharing spending according to Bloomberg, and coupled with Lyft’s 24%, the duo effectively controls the entire US market. This lends Uber Technologies, Inc. (NYSE:UBER) with significant advantages, particularly in terms of user reach, network coverage, and lower costs. These enable the firm to entrench itself in the market to make it harder for newer firms or entrants to eat its share. Uber Technologies, Inc. (NYSE:UBER) also benefits from a strong willingness to diversify and evolve. The firm has stakes in urban air taxis, it operates a food. delivery business, and has teamed up with GM to start an autonomous ride sharing service. If it is successful with autonomous ride sharing and air taxis, Uber Technologies, Inc. (NYSE:UBER) could further increase its competitive moat.

RiverPark Advisors mentioned Uber Technologies, Inc. (NYSE:UBER) in its Q1 2024 investor letter. Here is what the fund said:

“UBER remains the undisputed global leader in ride sharing, with a 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 profitable, delivering expanding margins and substantial free cash flow. We view UBER as more than a ride sharing and food delivery service; we also see it as a global mobility platform with 142 million users (by comparison, Amazon Prime has 200 million members) and the ability to penetrate new markets of on-demand services, such as package and grocery delivery, travel, and hourly worker staffing. Given its $5.4 billion of unrestricted cash and $4.8 billion of investments, the company today has an enterprise value of $165 billion, indicating that UBER trades at 21x our estimates of next year’s free cash flow.”