Jim Cramer - Mad Money Uber UBER-N BUY ON WEAKNESS Feb 05, 2025

The rides and Uber Eats are growing rapidly. Advertising boasts 175 million active users of the Uber app, and they can still capture more of the ad potential. Their freight division should be set aside; it's distraction. Also, their self-driving business will be exciting for Uber.

Tariffs have taken a bit of a back seat, so now focus is returning again to robotics and robotaxis. Only 3 are in that race -- UBER, Waymo, and TSLA. He particularly likes Waymo, and then TSLA. 12-month price target is $115.

Can continue to deliver solid topline growth. Good company, though he has questions about it and is watching. Worried about robotaxis. Waymo seems to have some serious traction right now. UBER has the distribution and the software. 

The fundamentals are excellent. It will break $100 and will be up for many years.

Is very mispriced. The market feels that if Tesla succeeds in self-driving cars, it will put Uber out of business. No, won't happen. Nearly 20% of Uber's fleeting is autonomous now. Uber is outgrowing their valuation (the PE is dropping). They recently joined the S&P. They have a fantastic future.

One of the themes that will come out of today's show is that he's looking for companies that have strong and growing cashflow. This name has gone from negative cashflow to positive. Classic company for this environment, with the ability to change prices tomorrow if costs go up today.

Fits his requirements of not having a ton of debt, having pricing power, strong market position. Technically, nice consolidation over the last year and has broken out. Now a nice pullback to a really good entry point. Large-cap growth still an important engine in this market.

Will be a permanent compounder. They had a good quarter. The buyback will happen.

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.
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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.