Uber (UBER)

It continues to grow, revenues growing around 17%, tapering to 14% in 3-4 years. Are expanding around the world. There is competition in good delivery. Has trimmed shares but likes it. 

There is lots of expansion here. It has traded down a bit because of too high expectations by the market regarding its latest quarter and this creates an opportunity. It is growing earnings (EBITA) at 31% year over year and will grow gross bookings at 17% year over year. Check the blog on his website for more information.              Buy 49  Hold 13  Sell 0

UBER reported revenue of $13.46 bln vs estimates of $13.27 bln. EBTIDA of $2.25 bln was essentially in-line. Operating profit missed estimates which led to some of the weakness in the shares. Monthly active platform consumers was up 17% and trip growth was up 22%. Starting in Q1 2026, they are going to switch their guidance format from EBITDA to EPS. Overall it looked like a strong quarter but expectations were high and profitability was maybe a little light in the quarter.
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UBER reported revenue of $13.46 bln vs estimates of $13.27 bln. EBTIDA of $2.25 bln was essentially in-line. Operating profit missed estimates which led to some of the weakness in the shares. Monthly active platform consumers was up 17% and trip growth was up 22%. Starting in Q1 2026, they are going to switch their guidance format from EBITDA to EPS. Overall it looked like a strong quarter but expectations were high and profitability was maybe a little light in the quarter.
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It's not just about self-driving cars. They have the market in intermediary service. It's a huge market and they're the brand name. Although there are some knocks on it such as a slightly higher debt load, they have a very nice buyback. You could buy more.

Core debate of autonomous driving is how does this play out between Waymo, TSLA, and all the other companies. Likes this name. Uber won't have to actually own the cars, but will enter into technology licensing with fleet management groups. Uber's platform essentially matches supply with demand. 

The bigger risk is that Waymo and TSLA won't need Uber's network, but Uber has more demand than both combined.

A story of growing cashflow, which will continue to grow. Mixed analyst estimates for next year. Long-run story is intact. Stock's behaving very well. But in general, his firm is reducing exposure to the consumer.

Technically, doing fine. Stock's moving higher, as is the 200-day MA. He worries about competition down the road, in particular autonomous vehicles such as Waymo. Diversified. Earnings growth for next few years somewhat muted. Trades at 30x PE, and it might get back to 15% growth, so the PEG is 2 (not exciting).

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The knock is that self-driving cars are going to be everywhere, and you don't need an intermediary service like this one. But they're doing not only mobility, but also delivery and freight. Good partnership announcements to get into robotaxis. Share buybacks.

Not expensive at 21x, growing visibly at 37%. Lots more to go.

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.

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.

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.

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.