Latest news with #UberTechnologies
Yahoo
a day ago
- Business
- Yahoo
Billionaire Chase Coleman Sold 94% of His Fund's Stake in Uber and Is Loading Up on a Skyrocketing Stock Whose Addressable Market Can 11X by 2032
Key Points Form 13Fs offer a way for investors to track the quarterly buying and selling activity of Wall Street's most-promising money managers. Profit-taking might not be the only reason billionaire Chase Coleman sent most of his fund's stake in Uber Technologies to the chopping block in the March-ended quarter. Meanwhile, Tiger Global's Coleman has eyes for an industry leader taking charge in the early stages of the quantum computing revolution. 10 stocks we like better than Microsoft › For some investors, earnings season is the pinnacle of data dumps on Wall Street. This is the six-week period each quarter where the stock market's most prominent and influential businesses lift the hood on their operating results. However, a strong argument can be made that the quarterly filing of Form 13Fs with the Securities and Exchange Commission provides equally invaluable information to investors. A 13F is a required filing by institutional investors who have at least $100 million in assets under management. What makes 13Fs so precious is they can clue investors into the stocks, industries, sectors, and trends that have piqued the attention of Wall Street's brightest money managers. While Warren Buffett tends to be the most-followed of all fund managers, he's not the only billionaire capable of delivering outsized returns or locating a good deal. Tiger Global Management's billionaire chief Chase Coleman is known for his love of small- and large-cap growth stocks, as well as his desire to pack his fund's portfolio with companies that can take advantage of Wall Street's next-big-thing trends. During the March-ended quarter, Coleman green-lit the sale of most of his fund's stake in ride-share colossus Uber Technologies (NYSE: UBER), and piled into into a skyrocketing tech stock whose addressable market in the next-hottest investment trend -- no, not artificial intelligence (AI) -- can 11X by 2032. Billionaire Chase Coleman slams the door on Uber Though Tiger Global Management's billionaire chief pared down or exited his fund's stake in 11 companies during the first quarter, the 2,446,700 shares of Uber Technologies that were sold is the biggest eye-opener. This worked out to a 94% reduction from Tiger Global's position at the end of 2024. The most logical of all reasons for this selling activity is simple profit-taking. While few money managers hold for the long-term these days, Tiger Global's average holding period is a little over two years and eight months. With Coleman's fund holding north of 5 million shares of Uber during the third quarter of 2023, and Uber stock effectively doubling since then, locking in gains may have been viewed as a wise idea. However, there might be more to Chase Coleman's selling activity in Uber than just benign profit-taking. Perhaps the biggest risk for Uber in the ride-sharing arena is steadily growing competition. Since David Risher took over as CEO of Lyft (NASDAQ: LYFT) in April 2023, all he's done is clamp down on unnecessary costs and shift his company from a cash-burner to a significant cash generator. With Lyft now profitable on a recurring basis and generating boatloads of cash flow from operations, it has a genuine opportunity to chip away at Uber's market-leading share. To build on this point regarding competitive pressures, Coleman may have also been anticipating downside pressure from robotaxis. Alphabet's autonomous ride-hailing service Waymo is rapidly expanding its service in Los Angeles and San Francisco, while Tesla recently unveiled a test service of its robotaxis in portions of Austin, Texas. Uber Technologies' valuation is a bit of an eyesore, as well. When 2023 began, Uber was valued at less than 2 times sales. As of this writing on July 20, it's now tipping the scales at nearly 4.3 times sales. Though its current price-to-sales (P/S) ratio is still less than half of its peak in 2021, it's roughly four times higher than chief rival Lyft. This issue is that Lyft appears to be a far better value than Uber, even with the latter providing sales channel diversification via Uber Eats and its logistics network. The final piece of the puzzle that may have enticed Chase Coleman to dump shares of Uber is the prospect of a U.S. recession taking place. Uber isn't time-tested in the sense that it hasn't navigated its way through an organic U.S. recession. This is yet another uncertainty that calls its somewhat premium valuation into question. This stock is up almost 1,000% in a decade, and Chase Coleman is gobbling up its shares On the other end of the spectrum, Tiger Global Management's billionaire investor purchased five new stocks during the first quarter and added to 14 existing positions. Though quite a few of these buys probably turned heads, the 896,700 shares of Microsoft (NASDAQ: MSFT) that Coleman bought stands out. This upped Tiger Global's stake in Microsoft by 17% since the end of 2024. Most investors have been piling into Microsoft because of its cloud computing and artificial intelligence ties. Azure is the world's No. 2 cloud infrastructure service platform by spending, based on estimates by Canalys. Incorporating generative AI solutions, and giving its subscribers the ability to build and train large language models, provides Azure with an opportunity to sustain a 30% (or greater) growth rate. But this might not be the only reason Coleman is loading up on shares of Microsoft, or why shares of the company have skyrocketed just shy of 1,000% over the trailing decade. In addition to AI, quantum computing has earned its time in the spotlight. This still-developing technology relies on specialized computers that use quantum mechanics to solve complex equations that traditional computers can't do. Quantum computing can potentially make AI algorithms more efficient, as well as aid with drug development, among other benefits. Based on an estimate from Fortune Business Insights, the global addressable market for quantum computing is expected to grow nearly 11-fold from $1.16 billion in 2024 to $12.62 billion by 2032. Note: Estimates are all over the map with quantum computing, with some foreseeing the cumulative economic impact of this technology approaching $1 trillion in a decade. Microsoft is among the companies on the cutting-edge of this next hot trend. Microsoft has developed a quantum processing unit known as Majorana 1, which is being integrated with a cloud-based compute platform that it's dubbed "Azure Quantum." While this is still in its very early stages, Microsoft's solutions can allow businesses to run quantum algorithms, as well as estimate what resources would be needed to scale quantum machines in the future. Though Microsoft isn't a quantum computing pure-play, it's clearly benefiting from the hype surrounding this technology. Something else noteworthy about Microsoft is its cash flow generation and pristine balance sheet. The company's legacy Windows and Office segments generate copious amounts of cash flow that it can redirect to faster-growing initiatives, such as cloud computing, AI, and quantum computing. Microsoft closed out the March quarter with almost $80 billion in cash, cash equivalents, and short-term investments, and it's generated over $93 billion in net cash from operations through the first nine months of fiscal 2025 (its fiscal year ended on June 30). Microsoft has the ability to take innovative risks that most other companies can't afford to. Should you buy stock in Microsoft right now? Before you buy stock in Microsoft, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Microsoft wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,023,813!* Now, it's worth noting Stock Advisor's total average return is 1,034% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Sean Williams has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Microsoft, Tesla, and Uber Technologies. The Motley Fool recommends Lyft and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Billionaire Chase Coleman Sold 94% of His Fund's Stake in Uber and Is Loading Up on a Skyrocketing Stock Whose Addressable Market Can 11X by 2032 was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
a day ago
- Business
- Yahoo
Uber Ads: The Hidden Gem Powering Uber's Next Growth Engine
Key Points Uber Ads is now a $1.5 billion run rate business. Advertisers benefit from high-intent, closed-loop attribution, which gives them a clear return on ad spend. If ad growth continues at this pace, it could become a meaningful driver of Uber's profitability. 10 stocks we like better than Uber Technologies › Uber Technologies (NYSE: UBER) has successfully reinvented itself. From a money-burning disruptor, it has now evolved into a profitable cash machine, generating over $6.9 billion in free cash flow in 2024. But beyond its core segments -- mobility and delivery -- Uber is quietly building something that could materially boost its top and bottom lines over time: Uber Ads. This ad platform, often overlooked by investors, is growing rapidly. And it might just be Uber's most underrated long-term growth engine. Why ads make strategic sense for Uber Uber isn't a media company, but it sits on something most advertisers dream of: daily intent. Millions of users open the Uber app each day to book rides, order food, or browse grocery deals. That gives Uber real-world behavioral data -- not just demographics or search keywords -- and it creates natural moments to serve ads. For instance, Uber can serve ads to users at the top of a food search on Uber Eats, before users place a ride order, during wait times while an order is en route, etc. For merchants -- from local restaurants to large consumer brands -- that's a compelling pitch. Instead of paying for vague impressions or passive clicks, advertisers can promote specific items or offers that show up when customers are already primed to make a purchase. Moreover, since Uber controls the full journey from impression to checkout, it can offer closed-loop attribution, giving advertisers a clear view of what types of spending drive actual sales. So whether it's a meal combo, a beverage add-on, or a location-based promo, Uber Ads helps advertisers convert and not just get attention. What the numbers say Uber Ads has gone from concept to scale in just a few years. In the first quarter of 2025, management said the business had surpassed a $1.5 billion annual revenue run rate, growing over 60% year over year, which makes it one of the fastest-growing parts of the company. Ads now appear across both mobility and delivery. Demand has been strongest in restaurant delivery, with advertising approaching 2% of delivery gross bookings. Meanwhile, mobility ads -- still early -- are growing even faster, driven by the global expansion of Journey Ads, which are ads served while customers are in transit. Uber hasn't broken out segment margins, but advertising likely carries one of the highest margins in the business, given its minimal incremental cost. As this segment scales, it could boost Uber's overall margin profile. What are the prospects for Uber Ads? At $1.5 billion, Uber Ads is not even 5% of Uber's 2024 revenue of $44 billion. But if current growth holds, it could account for a much larger share in the years ahead. What makes this business so compelling is that it can grow without adding new users or cities. Instead, Uber can unlock more value per user by introducing either of the following: New ad formats -- such as video, premium placement, and full-funnel analytics. For instance, restaurants might run short promotional clips during checkout, while merchants might pay to appear first in a search result. Subscription-based ad integrations -- such as sponsored promotions and exclusive offers for Uber One members. Imagine: "Uber One members get 25% off your next McDonald's order." It's a win-win for users, brands, and the platform. As Uber expands further into groceries, convenience, and autonomous delivery, its ad inventory -- and monetization surface -- will continue to grow. This strategy mirrors Amazon's ad strategy: layering high-margin advertising on top of a high-frequency transaction platform. Uber doesn't have Amazon's scale, but it has a unique advantage: real-world location and intent data, which traditional digital platforms can't easily match. And with the global digital advertising market projected to reach $1.2 trillion by 2030, Uber needs only a small slice to build a massive business. What it means for investors Uber is evolving from a ride-hailing app to a multisided platform with multiple monetization layers. Uber Ads is a clear example of that evolution. It's high-margin, scalable, and tied directly to core use -- all while operating in the background of Uber's existing services. If execution continues, it could become a multibillion-dollar earnings engine, helping Uber deepen margins and smooth out volatility from the core services, mobility and delivery. For long-term investors, it's worth keeping a close eye on this hidden gem. Should you invest $1,000 in Uber Technologies right now? Before you buy stock in Uber Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Uber Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,023,813!* Now, it's worth noting Stock Advisor's total average return is 1,034% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Lawrence Nga has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool has a disclosure policy. Uber Ads: The Hidden Gem Powering Uber's Next Growth Engine was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Automotive
- Yahoo
Can Lucid Motors Stock Hit $7 in 2025?
Lucid Group's (LCID) biggest headline this year is its blockbuster robotaxi deal with Uber Technologies (UBER) and Nuro. The announcement sent shares soaring on July 17, and brought renewed attention to Lucid's positioning in the autonomous ride-hailing space. Benchmark analyst Mickey Legg described the move as a 'clear strategic win." The analyst also raised his price target to an ambitious $7. More News from Barchart Nvidia Stock Warning: This NVDA Challenger Just Scored a Major Customer Dear QuantumScape Stock Fans, Mark Your Calendars for July 23 Should You Buy the Post-Earnings Dip in Lockheed Martin Stock? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Yet, skeptics caution that Uber or Nuro will own and operate the fleet, which limits Lucid's ability to generate recurring revenue from autonomous services. There are also concerns about execution risk, as Lucid must ramp deliveries sharply to hit its annual target of 20,000 units. Will Lucid be able to navigate these headwinds and hit that ambitious $7 mark? Or is the price target an idealistic stretch that depends on perfection across multiple fronts? About Lucid Stock Lucid is a U.S. electric vehicle (EV) and technology company headquartered in Newark, California. The company, which began delivering luxury EVs in late 2021 and entered the robotaxi space with its Gravity SUV, has a market capitalization of $8.6 billion, placing it among the mid-tier publicly traded automakers. Over the past year, Lucid stock has experienced notable volatility. It began 2025 on a negative note amid concerns over production and delivery. However, the launch of the robotaxi partnership with Uber and Nuro has marked a major inflection point, with LCID stock surging 36% on July 17, its strongest one-day move in over two years. Looking at recent trends, the stock climbed from around $2.30 in mid-July to well above $3 before settling back into the high $2/low $3 range. Over the past month, LCID stock has gained 43%. On a year-to-date (YTD) basis, shares are up just 3.6%. While Lucid seems to be gaining momentum lately, its sky-high valuation raises eyebrows. Priced at 11.48 times sales, LCID stock trades higher than many industry peers. Lucid's Bottom Line Is Still in the Red Lucid released its first-quarter 2025 earnings report on May 6, revealing a 36% year-over-year (YOY) rise in quarterly revenue to $235 million, supported by a record 3,109 vehicle deliveries, a 58% increase from a year ago. The company produced 2,212 units during the quarter and exited with about $5.76 billion in total liquidity. Operationally, Lucid achieved progress, with gross margin improving to -97%, up substantially from -134% in Q1 2024. However, the company remained unprofitable, reporting a non-GAAP net loss of $0.20 per share, compared to a $0.27 loss in the prior-year quarter. Adjusted EBITDA losses narrowed only modestly to $563.5 million. Lucid reaffirmed its full-year 2025 production guidance of approximately 20,000 vehicles, with capital expenditures projected at about $1.4 billion. Analysts expect the company's loss per share to improve 26% YOY to $0.92 in fiscal 2025, then narrow another 29% to a $0.65 per-share loss in fiscal 2026. What Do Analysts Expect for Lucid Stock? Benchmark raised LCID stock's price target to $7 from $5, maintaining a 'Buy' rating after Lucid unveiled the strategic partnership with Uber and Nuro. Under the deal, Lucid will deliver 20,000 Gravity SUVs equipped with Nuro's autonomous driving tech over six years, with the initial vehicles expected to launch in 2026. Uber's subsidiary, SMB Holding, will invest $300 million through a private placement priced at the 30-day volume‑weighted average, with an 18-month lock-up, closing in Q3 2025. However, not everyone is on board with LCID. Some analysts adopt caution, maintaining 'Neutral' or 'Hold' ratings with more conservative targets. Cantor Fitzgerald, for instance, has a 'Neutral' rating with a $3 price target. While it acknowledged Lucid's technological edge and strong liquidity, the firm cited concerns over ongoing high negative margins and potential capital needs if expansion stalls. Stifel also has a 'Hold' rating on Lucid stock with a $3 price target. LCID stock has a consensus 'Hold' rating overall. Of the 13 analysts covering shares, two advise a 'Strong Buy,' nine suggest a 'Hold,' one analyst gives the stock a 'Moderate Sell' rating, and one rates LCID as a 'Strong Sell.' Lucid now trades above its average price target of $2.86. However, Benchmark's Street-high target of $7 signals that shares could rise as much as 124% from current levels. On the date of publication, Subhasree Kar did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Bloomberg
2 days ago
- Automotive
- Bloomberg
Uber Tests Option in the US to Match Female Riders and Drivers
Uber Technologies Inc. is piloting a new ride type in the US that will match female riders and drivers, expanding access to a safety feature it already offers in some international markets. The service will launch in Los Angeles, San Francisco and Detroit over the next few weeks, the company said in a statement Wednesday. Riders will see a new on-demand ride option called 'Women Drivers' alongside the existing UberX, Comfort, UberXL and Black offerings. Customers can reserve such a trip in advance, or set their preference in the app settings to increase the likelihood of being matched with a woman driver.
Yahoo
3 days ago
- Business
- Yahoo
What Makes Uber Technologies (UBER) an Investment Bet?
Aristotle Capital Management, LLC, an investment management company, released its 'Value Equity Strategy' second quarter 2025 investor letter. A copy of the letter can be downloaded here. Although the U.S. equity market started with volatility in the second quarter, it rebounded with strength, with the S&P 500 Index rising 10.94% during the quarter. The composite returned 4.88% gross of fees (4.75% net of fees) in the first quarter, outperforming the 3.78% return of the Russell 1000 Value Index and underperforming the 10.94% return of the S&P 500 Index. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its second quarter 2025 investor letter, Aristotle Capital Value Equity Strategy highlighted stocks such as Uber Technologies, Inc. (NYSE:UBER). Uber Technologies, Inc. (NYSE:UBER) develops and operates proprietary technology applications that operate through Mobility, Delivery, and Freight segments. The one-month return of Uber Technologies, Inc. (NYSE:UBER) was 6.95%, and its shares gained 34.59% of their value over the last 52 weeks. On July 21, 2025, Uber Technologies, Inc. (NYSE:UBER) stock closed at $91.16 per share, with a market capitalization of $190.631 billion. Aristotle Capital Value Equity Strategy stated the following regarding Uber Technologies, Inc. (NYSE:UBER) in its second quarter 2025 investor letter: "Founded in 2009 and headquartered in San Francisco, California, Uber Technologies, Inc. (NYSE:UBER) is a global technology platform that facilitates the movement of people, goods and services across a wide range of markets. What began as a simple ride-hailing app has evolved into a multi-segment leader operating in more than 70 countries, connecting millions of consumers, drivers, couriers and merchants worldwide. A close up view of a hand holding a smartphone, using a ride sharing app. Uber Technologies, Inc. (NYSE:UBER) is in 10th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 145 hedge fund portfolios held Uber Technologies, Inc. (NYSE:UBER) at the end of the first quarter, which was 166 in the previous quarter. While we acknowledge the potential of Uber Technologies, Inc. (NYSE:UBER) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Uber Technologies, Inc. (NYSE:UBER) and shared the list of stocks Jim Cramer recently discussed. Brasada Capital Management established a position in Uber Technologies, Inc. (NYSE:UBER) in Q2 2025, viewing it as a high-quality business, undeservingly discounted by the market due to short term concerns. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey.
