Andrew Pyle Uber UBER-N BUY Aug 29, 2024

We continue to like UBER. It's a large name, with a decent valuation of 22.6X forward earnings, forward growth epectations are decent, and analyst estimates continue to climb higher. We like its operating leverage, and it's now profitable with good free cash flow. 

In a hypothetical scenario, where we had a US model portfolio, we could see it being in either the Balanced or Growth model portfolio, with a slight tilt towards the Balanced model portfolio.
Unlock Premium - Try 5i Free   

Up 43% this year. A new deal will double rides in Abu Dabai. Expects revenues +16% and EPS +32%.

They're now a cash flow machine. The shares are at an all-time high, but cash flow, earnings and revenues are growing faster than the share price. So, it's getting less expensive in terms of valuation.

Let it go after Q4 results. Concerned that it was reaching saturation in major urban markets. Talked about aggressively pursuing suburban market share, which is harder to serve and likely not as profitable. Slowing growth YOY. Major question marks about fledgling freight business.

He bought more because he didn't hold a large enough position. He expects it to reach $100. He may add even more.

Was in it before and has been waiting to re-enter. He just took a 1% position. Expects it to break $100 soon. Waymo is a plus.

Waymo's self-driving is here and will see hockey stick-shaped growth.

New CEO in 2017 vowed to increase profitability, and it's materialized in operating margins, earnings, and cashflow. Thinks that will continue. Rapidly getting into self-driving, which apparently will dominate the space over the next number of years. Stock has a long way to go over next 5 years.

Financial metrics on mobility, delivery, and even on freight come in around mid-60s on that rule of 40. 12-month price target of $112. No dividend.

Chart shows fairly clear upward move. True leader in its nascent industry, has quickly become a very big part of our society. Stock's down today on news that LYFT has done a deal with Waymo for autonomous vehicles in Nashville. One-day news is just noise.

See his firm's blog under Insights at goodreid.com.