1. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 166
3-Year Revenue Growth: ~28.4%
% Increase on a YTD Basis: ~31.09%
Uber Technologies, Inc. (NYSE:UBER) is engaged in developing and operating proprietary technology applications. Analyst Brian Nowak from Morgan Stanley maintained a “Buy” rating on the company’s stock and has a price objective of $95.00. The analyst’s rating is backed by a combination of factors demonstrating the company’s strong growth trajectory and operational efficiency. Uber Technologies, Inc. (NYSE:UBER)’s platform continues to experience strong growth, mainly in its Mobility and Delivery segments. Notably, in Q1 2025, the mobility segment’s adjusted EBITDA saw an increase of 19% YoY, while that of the delivery segment increased by 45% YoY.
The analyst has noted the company’s ability to balance growth with profitability. Furthermore, the early positive signals from Waymo’s utilization on Uber Technologies, Inc. (NYSE:UBER)’s platform in Austin aid the analyst’s positive views. Elsewhere, Bank of America Securities analyst Justin Post reiterated the bullish stance on the company’s stock, giving a “Buy” rating. The analyst believes that overall business trends remain healthy. Uber Technologies, Inc. (NYSE:UBER)’s stable trip growth and expanding EBITDA margins exhibit strong underlying business fundamentals. Also, the company’s management gave a positive outlook, demonstrating stable pricing and steady volume growth, which are likely to support the long-term demand, says Post.
Optimist Fund, an investment management company, published its Q1 2025 investor letter. Here is what the fund said:
“Uber Technologies, Inc. (NYSE:UBER) – Uber posted its strongest quarter yet, with gross bookings rising 18% year-over-year to $44.2 billion and revenue growing 20% to $12.0 billion. Adjusted EBITDA jumped 44% to $1.8 billion, fueled by record demand across both Mobility and Delivery, while free cash flow reached $1.7 billion. Exceeding its three-year financial targets, the company heads into 2025 with accelerating momentum and emerging upside from autonomous vehicles. Uber’s growing free cash flow profile is attracting broader investor attention—including a recent investment from renowned value investor Bill Ackman. Our investment thesis remains intact.”
While we acknowledge the potential of UBER as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than UBER but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
