5 Good Stocks To Invest In Right Now

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

Number of Hedge Fund Holders: 144

An Outperform rating and a $58 price target were reiterated on shares of Uber Technologies, Inc. (NYSE:UBER) on September 5 by Brad Erickson at RBC Capital.

Uber Technologies, Inc. (NYSE:UBER) is an industrial company based in San Francisco, California. It develops and operates proprietary tech applications for ride-sharing services.

We saw 144 hedge funds long Uber Technologies, Inc. (NYSE:UBER) in the second quarter, with a total stake value of $7.7 billion.

Here’s what RiverPark Advisors said about Uber Technologies, Inc. (NYSE:UBER) in its second-quarter 2023 investor letter:

“Uber Technologies, Inc. (NYSE:UBER): UBER was a top contributor for the quarter following better than expected 1Q23 earnings and 2Q23 guidance. Gross bookings of $31.4 billion were up 22% year over year. Mobility gross bookings of $15 billion grew 44% over the last year driven by a combination of product innovation and driver availability. Delivery gross bookings, also $15 billion, were up 12% from last year and accelerated through the quarter. 1Q Adjusted EBITDA of $761 million, up $593 million year over year, significantly beat management’s $660-$700 million guidance and the company generated $549 million of free cash flow versus a loss last year. Management guided to continuing growth in 2Q Gross Bookings (13%-17% growth) and Adjusted EBITDA (of $800- $850 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, truck brokerage (the company had $1.4 billion in Freight revenue for 1Q23), and worker staffing for shift work. Given its $4.2 billion of unrestricted cash and $5 billion of investments, the company today has an enterprise value of $84 billion, indicating that UBER trades at 20x next year’s estimated free cash flow.”