In this article, we will look at Buy, Sell, or Hold? Jim Cramer’s Take on 5 Callers’ Stocks as Crude Oil Prices Climb. Please visit Buy, Sell, or Hold? Jim Cramer’s Take on 18 Callers’ Stocks as Crude Oil Prices Climb, if you’d like to see the extended list and methodology behind it.
5. Uber Technologies, Inc. (NYSE:UBER)
Jim Cramer gave top insight on Uber Technologies, Inc. (NYSE:UBER), sharing a game plan of what to buy, sell, and hold right now. A club member asked for Cramer’s take on the stock, and he said:
I think that Uber represents long-term great value because they are a monopolist when you think about it. Sure, I know we do have Lyft, but worldwide, they are the go-to, and they have, look, they’re in everybody’s app, you know, they’ve got the app. They are well known wherever you go… By the way, I feel the same way about DoorDash, another one that I really like, and Airbnb, and you know that because in the book I talk about these brand-name companies that came public in the last six or seven years.
Uber Technologies, Inc. (NYSE:UBER) operates technology platforms that connect users for mobility, delivery, and freight services. The company provides ridesharing, food and retail delivery, and digital freight logistics. Cramer discussed the company’s partnership with NVIDIA during the March 18 episode, as he stated:
Now that we’re back from California, I want to go over one big story from NVIDIA’s GTC extravaganza. It’s really not getting any attention at all, especially today with the market so bad. Earlier this week, NVIDIA announced it’s expanding its autonomous driving partnership with Uber. They plan to launch a global fleet of self-driving cars that run on NVIDIA software starting in San Francisco and LA. It’s going to be sometime in the first half of next year.
… Hardly anyone’s willing to give them the benefit of the doubt because when there are AI disruption fears, sellers shoot first and ask questions later. Personally, I don’t think these robotaxis are a real threat to Uber. For one thing, their presence is still tiny, but more importantly, Uber can just form partnerships with the autonomous driving companies. They don’t have to compete directly. This is a company with 202 million monthly active platform users. If you’ve got a robotaxi business, why not just plug it into Uber’s network?… He (Jensen Huang, CEO of NVIDIA) mentions Uber because… they’re now working with a growing roster of automakers to develop their own robotaxis that run on NVIDIA software with the plan to get them into 28 cities around the world by 2028. Not that far from here. And this finally seemed to resonate with investors. It’s why Uber stock caught fire earlier this week.
Now, some analysts have written up the news claiming that this NVIDIA news was very positive, and I couldn’t agree more. Of course, I’ve liked Uber for years. I still think the company can make plenty of money now by being the number one rideshare platform and the number two food delivery app. I still think they’ll be a major player in robotaxis, either through their own vehicles or someone else’s, because anybody can plug that technology into Uber’s rideshare network. But what changed this week is that Uber’s self-driving strategy now has the NVIDIA imprimatur. And with each new announcement, we can get more visibility into what the robotaxi strategy looks like. And that’s why the stock found its footing this week, and it’s just beginning.
Here’s the bottom line: Given that Uber’s still down almost 25% from its highs just last September, I think you’re getting a terrific buying opportunity here, particularly with this lousy market. At this point, Uber’s basically a value stock. It trades at 23 times this year’s earnings estimates. It’s rarely been this cheap since the company turned profitable in 2023. If, like me, you believe the robotaxi competition worries are overblown, then this might be your chance to pounce.
