Top 5 Stock Picks of Billionaire Nicholas Pritzker

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

Tao Capital Stake Value: $57,562,000
Percentage of Tao Capital’s 13F Portfolio: 15.33%
Number of Hedge Fund Holders: 143

Uber Technologies, Inc. (NYSE:UBER) is a San Francisco-based mobility-as-a-service firm that operates in more than 900 locations worldwide.

JPMorgan analyst Doug Anmuth decreased his price objective on Uber Technologies, Inc. (NYSE:UBER) to $68 from $72 on December 15 and maintained an “Overweight” rating on the stock.

Uber Technologies, Inc. (NYSE:UBER) remains the seventh-largest holding among hedge funds in the third quarter of 2021, and fund managers increased their net holdings. As of Q3 2021, 143 hedge funds have positions in Uber Technologies, Inc. (NYSE:UBER), compared with 135 in the previous quarter.

In its second-quarter 2021 investor letter, ClearBridge Investments mentioned Uber Technologies, Inc. (NYSE:UBER). Here is what the fund had to say:

“UBER was our top detractor for the quarter. Delivery growth remains strong, and ride sharing has started to recover, though still down year over year (vs. pre-COVID results). Gross bookings grew 24% year over year, driven by 166% Delivery growth.

Despite the COVID disruption, UBER remains the undisputed global leader in ride sharing, with greater than 50% share in every major region in which it operates. The company is also a leader in food delivery (64% of 1Q21 revenue), where it is number one or two in the more than 25 countries in which it operates. 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 more than 100 million users (by comparison, Amazon Prime has 130+ million members) and penetrate new markets of ondemand services, such as grocery delivery, truck brokerage and worker staffing for shift work. Its New Verticals (non-food delivery such as grocery, convenience, and alcohol) business hit a $3 billion annualized run rate in March, up 77% quarter over quarter.

UBER, at its current $91 billion market capitalization, trades at 4x next year’s revenue from its two core businesses. Additionally, the company has substantial, unrecognized, value in its several nascent development businesses and another $13 billion in equity stakes in synergistic businesses around the world.”