In this article, we discuss the 5 best cash app stocks to invest in. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Cash App Stocks to Invest In.
5. Uber Technologies, Inc. (NYSE: UBER)
Number of Hedge Fund Holders: 130
Uber Technologies, Inc. (NYSE: UBER) established its digital wallet service Uber Money in 2019, and the ride-hailing app is ranked sixth among the 10 best cash app stocks to invest in. Uber Money is a digital wallet that allows users to manage and move their money and see their earnings and spending history.
In the first quarter of 2021, Uber Technologies, Inc. (NYSE: UBER) reported an EPS of $0.45, beating estimates by $0.80. The ride-hailing company’s first-quarter revenue came in at $2.90 billion, down 11% year over year. The stock has gained 29% in the past twelve months.
On August 2, Gordon Haskett analyst Robert Mollins initiated a Buy rating on Uber Technologies, Inc. (NYSE: UBER) with a $65 price target, citing the company’s performance in the rides and deliveries area restaurant and grocery delivery services.
At the end of the first quarter of 2021, 130 hedge funds in the database of Insider Monkey held stakes worth $10.5 billion in Uber Technologies, Inc. (NYSE: UBER), down from 135 in the previous quarter worth $10.1 billion.
“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.”