Here’s What is Strengthening Uber Technologies’ (UBER) Position

Sands Capital, an investment management company, released its “Sands Capital Select Growth Strategy” Q1 2025 investor letter. A copy of the letter can be downloaded here. Select Growth Strategy primarily targets U.S. companies that are leading the way in crucial areas of positive structural transformation within the economy. U.S. growth equities, tracked by the Russell 1000 Growth Index, experienced their poorest quarterly performance since 2022, significantly lagging behind U.S. value equities, represented by the Russell 1000 Value Index, in the widest gap observed since 2001. The strategy slightly underperformed the Russell 1000 Growth Index in the quarter. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its first-quarter 2025 investor letter, Sands Capital Select Growth Strategy highlighted stocks such as Uber Technologies, Inc. (NYSE:UBER). Uber Technologies, Inc. (NYSE:UBER) develops and operates proprietary technology applications that operates through Mobility, Delivery, and Freight segments. The one-month return of Uber Technologies, Inc. (NYSE:UBER) was -0.14%, and its shares gained 30.36% of their value over the last 52 weeks. On May 30, 2025, Uber Technologies, Inc. (NYSE:UBER) stock closed at $84.16 per share, with a market capitalization of $175.993 billion.

Sands Capital Select Growth Strategy stated the following regarding Uber Technologies, Inc. (NYSE:UBER) in its Q1 2025 investor letter:

“Uber Technologies, Inc. (NYSE:UBER) reported strong quarterly results, with gross bookings up 21 percent year-over-year, driven by volume rather than pricing, and adjusted EBITDA increasing 44 percent. Investor debate around autonomous vehicles (AVs) continues to influence sentiment. Still, we believe a fragmented AV market—beyond current leaders Tesla and Waymo—will favor Uber, given the likely need for an aggregator (we view it as unlikely that consumers will use separate apps for each AV provider). Additionally, Uber has begun investing in AV fleets and maintenance depots, a move that could further strengthen its position within the evolving AV ecosystem.”

Jim Cramer Says Uber (UBER) “Stock Can Go Much Higher Over Multiple Years”

A close up view of a hand holding a smartphone, using a ride sharing app.

Uber Technologies, Inc. (NYSE:UBER) is in 10th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 145 hedge fund portfolios held Uber Technologies, Inc. (NYSE:UBER) at the end of the first quarter, which was 166 in the previous quarter. While we acknowledge the potential of Uber Technologies, Inc. (NYSE:UBER) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Uber Technologies, Inc. (NYSE:UBER) and shared Broyhill Asset Management’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.