Uber (UBER)

Rumours last week that it may be looking to acquire EXPE. Had a good run, within 10% of price target. In the autonomous driving space he gravitates to GOOG, as it has Waymo and a heck of a lot more data.

It's now profitable. He bought it before this and before they entered the S&P 500. It has more room to run with many untapped opportunities, given that 100 million people use their app; is a massive opportunity in advertising. Uber Eats is gaining traction, and the Robotaxi by Tesla is promising. With driverless cars, Uber's market could explode.

He regrets not buying it, but can't dwell on that. Choppy, but on a pretty good trend. If you draw a linear regression line (in between the top and bottom), you can see the stock's going up. He got a fresh buy signal on this today. Could come back in the next month, but longer-term move looks quite positive. 

After 10 months, just now performing better than the S&P, and that's what you want.

A secular grower, will grow whether the economy's good or not. Really likes the technical setup, has a big base that's built over the last 10-12 months. In-app advertising is closing in on $1B revenue. Opportunity in autonomous vehicles and alternate types of delivery. Will grow cashflow and earnings significantly over the next 2-5 years. Market-share leader. No dividend.

They are blowing away former projections in free cash flow, $2 billion this year, but is $7.5 billion actually and $9.5 billion in 2025. The fundamentals are amazing. Definitely hold or own this. She doesn't like their 39x PE, but growth is so strong. She's trimmed it twice because it's such a huge holding for her.

Their advertising business is a hidden gem, an opportunity for ads given 100 million users on their app. Expects this to run much higher.

This has more upside than others in the tech space. Its partnership with Instacard expands its reach and it is looking for more partnerships. It trades at 23X 2026 and growing at a 50% compounded annual rate from 2024 to 2027. Also it is guiding to 20% growth in Q3 so there is lots of upside.
Buy 50  Hold 5  Sell 0

Company has been able to transition into profit generating company. Expansion into Uber Eats also going well. Will watch business going forward. Is a quality company, but does not own shares at this time. 

They were right to sell non-core assets and kept Uber Eats, a great service. The CEO, from Expedia, is going a great job, and generate a lot of fress cash flow. Changes like ordering an Uber ahead of time are smart. Will do well in the future.

Outlook is quite sound. Four weeks ago, everyone thought we were in the middle of a recession, which clearly is not the case. Strong growth opportunities into 2025, underpinned by a resilient economy. Good entry point for a company that, generally speaking, has the market to itself.

In some cases, 70x would be seen as too expensive, but it wouldn't detract him from UBER.

Getting into the robotics side of delivery. He's researching it right now, but not buying yet.

Self-driving cars will drive growth. Profits are pointing higher. He expects up to $10 billion free cash flow by 2026 that he expects they will spend on growing more. Revenues will grow double digits. If EBITDA is 25x, stock will double or triple from here. Regulatory is normalizing.

Stocks go up and then consolidate. Uber has done that. It is not making new highs and not breaking down. If it doesn't break down then buy. If it breaks out that's good.

They're doing very well. Don't wait for a pullback, because it may not happen. Buy partially, because it's rallying lately.

Not sure if this news is a huge positive for GM, but it affirms that driverless cars are a serious thing. Uber is expensive at 40x PE, but has 40% earnings growth forecast and mints free cash flow at 4.5% free cash flow yield. She's keep holding this.