Uber (UBER)

(A Top Pick Aug 09/21, Down 44%) Has since sold shares of the company. Rising sharing and food delivery tough business models. Not sure on near term demand for non-essential service. Cost inflation weighing on companies ability to generate profit. Barely able to make a profit in strong market, let alone in poor market.

Business model of ride share and food business is unique. Recent market selloff presenting good buying opportunity. Cash flow and profits yet to be seen in company. Would buy other names given economic uncertainty. Wait to see whether company is able to generate profits.

It can still go lower, because he doesn't think their next quarter will be that good. Maybe wait another quarter.

(A Top Pick Aug 30/21, Down 42%) Covid delayed the reopening, but it will happen and Uber will deliver. Earnings are not expected until 2024. It's a high-growth, speculative stock.

It is losing money and the balance sheet is falling, so the bear market is not good for it. It is 5X Book Value and he has no target even on the downside.

They will be the leader in ride-sharing and are growing in food delivery. Management this week says it will focus on earnings and freezing hiring, which is what the market wants. Give it two quarters to see how they progress. They have the brand, but must digest higher labour and gas costs. He expects we're reaching peak inflation which will moderate in the second half of 2022.

Difficult stock to own lately, but thinks management is headed in the right direction. Company at the intersection of two trends (ride sharing & food delivery). Main question is whether company can be profitable (especially with rising interest rates). Ride sharing will normalize in society, creating opportunity for company. Technical issues still being worked out such as "time to destination" calculation, but should be normalized over time.

He's under water this, but Uber will benefit when there's more re-opening. Likes how they're merging gradually with the taxi industry. Their valuation is high, but the app is very good and he sees a return to being a favoured growth stock.

Shares are now attractive. Analysts are more positive on Uber. It's a reopening play. Its fuel surcharge buffers rising oil prices. He targets $50, a decent short-term gain.

They're partnering with taxi services in New York which will improve cash flow to keep that positive in coming quarters.

Uber now allowing traditional taxi cabs to use app. Company not profitable even though has been around for years. Would rather use product than invest in company. Don't buy.

A very good company, but it loses money. He doesn't recommend money-losers in this climate.

Stock's fallen below 200-day MA, which is also starting to fall. Concerns technically. Also concerned about labour shortages and what the pandemic holds. No profit until 2023, and he's shy on these types of names. Interest rates also a threat.

Since launching, this stock has been dead on the road, below its IPO price. But now 5 brokerages name of their top picks for 2022. He agrees. True, he's been avoiding tech stocks without earnings, and this outbreak isn't helping recruit drivers and is driving up fares. However, their last report in November beat expecations, even postivei earnings before EBITDA for the first time. Then, the Fed got hawkish and the market turned against unprofitable growth stocks like Uber. But Uber is now a well-rounded business for the first time; Uber Eats used to struggle and is in far better shape. Also, consolidation has transformed the industry. Uber Eats still lost money in 2020 despite revenues exploding. Recently Uber saw 97% revenue growth and the company nearly broke even before EBITDA. Ride-sharing depends on a return to normalcy. He expects us to beat Covid this year, so Uber will snap back. In Q3 last year, their ride-sharing revenue grew 62%, though the YOY comps were easy. He predicts better numbers after Omicron peaks. Also, Uber Freight will launch and this delivery service will contribute to the bottom line next year. The current supply chain crisis makes this service invaluable. Uver just bought a freight company that should enhance profitability, likely to break even by year's end. The street predicts $1.4 billion earnings before EBITDA, then $3.6 billion in 2023 then $5.5 billion in 2024. EPS should go positive in 2023. Since bottoming in December, share have held steady even though other tech companies are sinking. The reason was that last month the CEO revealed historically high bookings one week. It reports Feb. 9, which will be a catalyst. Uber trades at a cheap 3x sales. Still, Uber faces regulatory and Omicron risks, so the stock is no slam dunk.

Impressed with the last couple of quarters. Global footprint, positive cashflows. Questions the move into low-margin food delivery. On the verge of growth acceleration. First move advantage. Made it through the pandemic. Insider buying. Yet stock's done nothing. It's worth a shot if you're a risk-taker.