What Makes Uber Technologies (UBER) a Lucrative Investment?

Broyhill Asset Management, an investment advisor, released its first quarter 2025 investor letter. A copy of the letter can be downloaded here. Broyhill Partners appreciated 2.8% net of all fees and expenses in the first quarter, surpassing a -1.2% return for the MSCI All Country World Index. Volatility was the dominant theme in the first quarter, particularly among a few US technology companies that have come to influence the performance of passive indices. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first-quarter 2025 investor letter, Broyhill Asset Management highlighted stocks such as Uber Technologies, Inc. (NYSE:UBER). Uber Technologies, Inc. (NYSE:UBER) develops and operates proprietary technology applications that operate through Mobility, Delivery, and Freight segments. The one-month return of Uber Technologies, Inc. (NYSE:UBER) was 0.02%, and its shares gained 30.58% of their value over the last 52 weeks. On May 29, 2025, Uber Technologies, Inc. (NYSE:UBER) stock closed at $84.30 per share with a market capitalization of $176.286 billion.

Broyhill Asset Management stated the following regarding Uber Technologies, Inc. (NYSE:UBER) in its Q1 2025 investor letter:

“We initiated a new investment in Uber Technologies, Inc. (NYSE:UBER), the largest ride-share and food delivery provider globally. With investors increasingly focused on the threat from driverless technology, which we believe is at least years away from having any material impact on Uber’s business, we think the market is overlooking the incredible benefits of scale currently driving (pun intended) outsized growth in profitability and surging free cash flow. We expect CEO Dara Khosrowshahi to follow a similar playbook to the one he developed at Expedia, where he was a consistent buyer of stock, ultimately repurchasing nearly a third of the company’s shares outstanding during his tenure.”

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 the list of stocks Jim Cramer talked about. 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.