5 Best Self-Driving Car Stocks To Invest In

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

No of Hedge Fund Holders: 144

Uber Technologies, Inc. (NYSE:UBER) is actively engaged in several initiatives to explore autonomous technology and services. In Houston, Texas, as well as in Los Angeles and Mountain View, California, Uber Technologies, Inc. (NYSE:UBER) is conducting tests for autonomous delivery services. These tests involve using all-electric sidewalk robots and autonomous cars to deliver food to the local community. Furthermore, Uber Technologies, Inc. (NYSE:UBER) is running a pilot program in Las Vegas, where customers have the opportunity to ride an all-electric autonomous vehicle.

Uber Technologies, Inc. (NYSE:UBER) was mentioned in the Q1 2023 investor letter of RiverPark Advisors. Here’s what the firm said:

“Uber Technologies, Inc. (NYSE:UBER): Uber was a top contributor in the quarter following better-than-expected 4Q results and 1Q guidance. Gross Bookings grew 19% year over year to $31 billion, driven by 31% Mobility Gross Bookings growth and 6% Delivery Growth Bookings growth. 4Q Adjusted EBITDA of $665 million, up $579 million year over year, significantly beating management’s $600-$630 million guidance. Management guided to continuing growth in 1Q for Gross Bookings (20%- 24% growth) and Adjusted EBITDA (of $660-$700 million).

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 solidly profitable with the potential for substantial margin expansion and free cash flow generation to come. 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 131 million users (by comparison, Amazon Prime has 200 million members) and penetrate new markets of on-demand services, such as package and grocery delivery, travel, truck brokerage (the company had $1.5 billion in Freight revenue for 4Q22), and worker staffing for shift work. Given its $4 billion of unrestricted cash and $5 billion of investments, the company today has an enterprise value of $70 billion, indicating that UBER trades at 1.6x next year’s estimated revenue.”