4. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 146
Quarterly Revenue Growth: 11.40%
Uber Technologies, Inc. (NYSE:UBER) is one of the best cheap beginner stocks for 2024. In the fourth quarter of 2023, Uber Technologies, Inc. (NYSE:UBER) said there was a 22% year-over-year increase in gross bookings, amounting to $37.6 billion. Trips during the quarter experienced a 24% year-over-year growth, totaling 2.6 billion, equivalent to an average of around 28 million trips per day. On February 7, Uber reported a Q4 GAAP EPS of $0.66 and a revenue of $9.9 billion, exceeding Wall Street estimates by $0.49 and $140 million, respectively.
According to Insider Monkey’s third quarter database, 146 hedge funds were bullish on Uber Technologies, Inc. (NYSE:UBER), compared to 144 funds in the earlier quarter. Brad Gerstner’s Altimeter Capital Management is the biggest stakeholder of the company, with 13.3 million shares worth $613.35 million.
RiverPark Advisors made the following comment about Uber Technologies, Inc. (NYSE:UBER) in its Q3 2023 investor letter:
“Uber Technologies, Inc. (NYSE:UBER): UBER was the top contributor in the quarter following a better-than-expected 2Q23 earnings report and 3Q23 guidance. Gross bookings of $33.6 billion were up 16% year over year. Mobility gross bookings of $17 billion grew 25% over last year driven by a combination of product innovation and driver availability. Delivery gross bookings of $16 billion were up 12% from last year. 2Q Adjusted EBITDA of $916 million, up $552 million year over year, significantly beat Street estimates of $845 million and the company generated $1.1 billion of free cash flow. Management guided to continuing growth in 3Q Gross Bookings (17%-20% growth) and Adjusted EBITDA (of $975-1,025 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 profitable, delivering expanding margins and substantial free cash flow. 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 130 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, and worker staffing for shift work. Given its $4.3 billion of unrestricted cash and $4.4 billion of investments, the company’s enterprise value of $95 billion equates to just over 20x next year’s estimated free cash flow.”
