Uber (UBER)

It´s ways away from profitable, but its last earnings call was very good. If this can trade through its $45 price, he'll consider it. This has a long way to go, but technically it's getting better. Lot of sellers are built in, because they've been under water.

The fundamentals aren't there yet. He hasn't seen profits yet and they face unique challenges. For example, California wants Uber to treat drivers like employees, not contractors. Everybody uses Uber, including him, but that doesn't mean they'll make money.

An example of so much hype surrounding an IPO, but the IPO doesn't give guidance to indicate when the stock expects to make money. Also, Uber involved in so many things, massive and a disruptor. It reminds him of Alibaba, which struggled for a while after its IPO before it took off. Wait for Uber to hit the mid-$30s to buy as a long-term hold.

Another Amazon? He does not own it, nor participate in the IPO. It has influenced the IPO market and it is a disrupter. It is like Amazon as a disruptive force in the market, involving big data. However, he thinks it is lacking a financial model that will provide a long runway. The company has not defined when the business will actually become profitable.

Uber should've gone public a lot earlier and not during a bad market. You can't blame Morgan Stanley; there is IPO fatigue now. The Uber app is good and the company is working with companies like McDonald's. If Uber can do what Bezos did with Amazon, then that will enormous. There's a huge market for Uber in under-served areas outside big cities.