In this article, we will look at Jim Cramer Broke Down 5 Stocks Amid Rising Inflation and a Recalcitrant Federal Reserve. Please visit Jim Cramer Broke Down 13 Stocks Amid Rising Inflation and a Recalcitrant Federal Reserve if you’d like to see an extended list and how we came up with the list of best value stocks.
5. Uber Technologies, Inc. (NYSE:UBER)
Uber Technologies, Inc. (NYSE:UBER) is one of the stocks mentioned during the show, as we cover everything Jim Cramer said about the market. Cramer highlighted the company’s partnership with NVIDIA, 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.
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. We recently mentioned Uber while discussing the best FAANG+ stocks to invest in. You can read more here.
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