Uber (UBER)

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.

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

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.

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

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

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.

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.

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

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. 

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.

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.