RiverPark Funds’ Top Q3 Performer: Uber Technologies (UBER)

RiverPark Funds, an investment management company, released the “RiverPark Large Growth Fund” in its third quarter 2022 investor letter — a copy of which can be downloaded here. For the quarter, the RiverPark Large Growth Fund (the “Fund”) lost 3.3% – slightly better than the S&P 500 (-4.9% for the quarter) and roughly in line with the Russell 1000 Growth index (-3.6% for quarters). Try to take some time to review the top 5 fund holdings so you can get an idea about their best stock picks this 2022.

In its Q3 2022 investor letter, RiverPark Large Growth Fund mentioned Uber Technologies, Inc. (NYSE:UBER) and explained its insights for the company. Founded in 2009, Uber Technologies, Inc. (NYSE:UBER) is a technology company based in San Francisco, California with a $56.1 billion market capitalization. Uber Technologies, Inc. (NYSE:UBER) delivered -32.36% return since the beginning of the year, while its 12-month return is down -38.37%. The stock closed at $28.36 per share on October 25, 2022.

Here’s what RiverPark Large Growth Fund had to say about Uber Technologies, Inc. (NYSE:UBER) in its Q3 2022 investor letter:

Uber our top contributor for the quarter with better-than-expected 2Q results, and 3Q EBITDA guidance that came in well ahead of Street estimates. The company reported 33% Gross Bookings growth from both the continued recovery of Mobility Gross Bookings, up 55% year over year, and the continued growth of Delivery Gross Bookings, up 7% year over year. Overall, revenue grew 105% year over year to $8 billion, generating $364 million of adjusted EBITDA, up $873 million year over year. Management guided for 25%-30% gross bookings growth and adjusted EBITDA of $440-$470 million for 3Q. Notably, FCF was positive at $382 million, up $780 million year over year, and remains positive for the year allowing the company to self-fund future growth.

UBER remains the undisputed global leader in ride sharing, with over 50% share in every major region where it operates. The company is also a leader in food delivery, where it is number one or two in more than 25 countries where it operates. Furthermore, after a history of losses, the company is now solidly profitable with the expectation of significant margin expansion and free cash flow generation to come. We see UBER as more than ride sharing and food delivery, but as a global mobility platform capable of selling to its more than 120 million users (by comparison, Amazon Prime has 200 million members) and penetrating new market of on-demand services, such as grocery delivery, truck brokerage (the company had $1.8 billion in Freight revenue for 2Q22), and worker staffing for shift work. With its $10 billion in cash and investments against $9 billion in debt, the company now has an enterprise value of $57 billion implying that UBER is trading at just 1.5x next year’s estimated earnings.”

Our calculations show that Uber Technologies, Inc. (NYSE:UBER) is ranked 8th on our list of 30 Most Popular Stocks in Hedge Funds. Uber Technologies, Inc. (NYSE:UBER) was in 129 hedge fund portfolios at the end of the second quarter of 2022, compared to 144 funds in the previous quarter. Uber Technologies, Inc. delivered. (NYSE:UBER) of 25.76% return in the last 3 months.

In October 2022, we also shared the views of another hedge fund on Uber Technologies, Inc. (NYSE:UBER) on another article. You can find other investor letters from hedge funds and prominent investors in our hedge fund investor letters 2022 Q3 page.

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Disclosure: None. This article was originally published on Insider Monkey.

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