5 Best Tech Stocks To Buy Now According To Billionaire Laffont

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

Billionaire Phillipe Laffont’s strategy of adding to his existing Uber Technologies position appears to be working. This is because shares of the ride-sharing company rose almost 5% in 2021, extending the six months gains to 60%. Uber was representing 4.04% of Coatue Management’s 13F portfolio at the end of the fourth quarter, up 78% from the previous quarter.

RiverPark Advisors stated in the fourth quarter investor letter that Uber’s businesses will grow in the years ahead. Here is what RiverPark Advisors said:

“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.”