Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets hit new all-time highs in Q4 2025, with the S&P 500 Index up 2.66% and the Bloomberg U.S. Aggregate Bond Index rising 1.10%. Value stocks outperformed growth stocks, and the U.S. economy showed resilience. Artificial intelligence was a major theme, with over 300 S&P 500 companies mentioning “AI” in earnings calls, boosting mega-cap tech stocks. However, concerns arose about AI revenue circularity, capital spending, and long-term investment returns. Against this backdrop, the Composite returned 1.45% pure gross of fees (0.95% net of fees), lagging the Russell 1000 Value Index’s 3.8% gain and the S&P 500 Index’s 2.66% gain. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Aristotle Capital Value Equity Strategy highlighted Uber Technologies, Inc. (NYSE:UBER) as one of the largest detractors during the period. Uber Technologies, Inc. (NYSE:UBER) is a multinational technology company that operates through mobility, delivery, and freight segments. On February 3, 2026, Uber Technologies, Inc. (NYSE:UBER) stock closed at $77.93 per share. One-month return of Uber Technologies, Inc. (NYSE:UBER) was -9.58%, and its shares gained 20.86% of their value over the last three months. Uber Technologies, Inc. (NYSE:UBER) has a market capitalization of $162.517 billion.
Aristotle Capital Value Equity Strategy stated the following regarding Uber Technologies, Inc. (NYSE:UBER) in its fourth quarter 2025 investor letter:
“Uber Technologies, Inc. (NYSE:UBER), a leading rideshare, delivery and shipping technology platform, was one of the largest detractors during the period. Trip volumes reached record levels, and gross bookings grew significantly year-over-year, yet the stock underperformed as investor focus shifted from growth to margin trajectory, regulatory risk and autonomous vehicle (AV) uncertainty. The primary near-term concern among market participants was management’s guidance around profitability. While results exceeded expectations on bookings and FREE cash flow, Uber signaled a deliberate moderation in margin expansion, as incremental profits are reinvested into affordability, cross-platform engagement and early AV initiatives. Regulatory concerns also resurfaced, particularly in Europe, where ongoing debates around driver classification and data protection continue to pose potential cost (and therefore margin) headwinds. At the same time, competitive anxiety around AVs intensified following Lyft’s expanded partnership with Waymo and continued investor focus on Tesla’s long-term robotaxi ambitions. Management acknowledged that autonomous initiatives will pressure near-term margins, as Uber invests to build supply and data infrastructure, even as utilization in early AV markets has been encouraging. Over the long term, however, our thesis remains intact. Uber’s global scale, deepening network effects, growing FREE cash flow and expanding cross-platform ecosystem position the company to compound value as profitability improves and new mobility technologies mature.”
Uber Technologies, Inc. (NYSE:UBER) is in 10th position on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 143 hedge fund portfolios held Uber Technologies, Inc. (NYSE:UBER) at the end of the third quarter, compared to 152 in the previous quarter. While we acknowledge the risk and potential of Uber Technologies, Inc. (NYSE:UBER) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Uber Technologies, Inc. (NYSE:UBER) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Uber Technologies, Inc. (NYSE:UBER) and shared the list of high growth technology stocks that are profitable. In addition, please check out our hedge fund investor letters Q4 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.
