2. Uber Technologies, Inc. (NYSE:UBER)
P/E Ratio: 81.09
Quarterly Revenue Growth: 15.44%
Number of Hedge Fund Holders: 129
Based in San Francisco, California, Uber Technologies, Inc. (NYSE:UBER) operates as a technology platform connecting consumers with independent ride service providers, offering a range of transportation options including public transit, bikes, and scooters. Moreover, Uber provides on-demand food delivery, freight services, business fleet solutions, and same-day delivery, catering to more than 142 million monthly active platform consumers across 70 countries.
In a significant move on February 14, Uber Technologies, Inc. (NYSE:UBER) announced its inaugural share repurchase program, authorizing its Board of Directors to buy back up to $7 billion of the company’s common stock.
As revealed by Insider Monkey’s Q4 2023 database encompassing 933 hedge funds, 129 had acquired and retained shares of Uber Technologies, Inc. (NYSE:UBER). Among them, D. E. Shaw’s D E Shaw emerged as the largest hedge fund shareholder, with an investment valued at $886 million.
Uber Technologies, Inc. (NYSE:UBER) was mentioned in RiverPark Advisors’ fourth quarter 2023 investor letter:
“Uber Technologies, Inc. (NYSE:UBER): UBER was a top contributor in the quarter following better than expected 3Q23 earnings and 4Q23 guidance. Gross bookings of $35.3 billion were up 21% year over year. Mobility gross bookings of $17.9 billion grew 30% over last year driven by a combination of product innovation and driver availability. Delivery gross bookings of $16 billion were up 16% from last year and continued to be strong throughout the quarter. 1Q Adjusted EBITDA of $1.1 billion, up $576 million year over year, was better than management’s guidance of $1 billion, and the company generated $900 million of free cash flow, up from $358 million last year. Management guided to continuing growth in 4Q Gross Bookings (23.5% growth) and Adjusted EBITDA (of $1.2 billion).
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.1 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 $5.2 billion of unrestricted cash and $5.1 billion of investments, the company today has an enterprise value of $128 billion, indicating that UBER trades at 21x our estimates of next year’s free cash flow.”
