A few weeks ago, I wrote a post proclaiming MOT’s stock picks for 2022. It has been one of our most popular posts to date. You can read it by clicking here. As a continuation, I’m diving a bit deeper into some of our picks to give our drop-dead gorgeous members some insight into the company, the stock, and anything else I feel is relevant to this blog.
If you are interested in UBER, which you should be according to Max and Boot, then keep reading.
A Quick Refresher On Why We Like UBER
“They’re a tech giant who will turn their first profit this year, and it’s only uphill from there.” – Max 💰
“The CEO came out and provided an update on the future for UBER. He reassured us that we are basically back at the pre-pandemic level and probably surpassed that. Also mentioned that they would be pulling out from unnecessary investment and focus more on the core and profitability.” – BootyTrades 🍑
UBER Company Profile
Date Founded: 2009
Headquarters: San Francisco, California
Sector: Technology
Industry: Software—Application
Full-Time Employees: 24,700
Mission Statement Excerpt: “We are a tech company that connects the physical and digital worlds to make movement happen at the tap of a button for everyone, everywhere. Because we believe in a world where movement should be equally accessible for all. So you can move safely. In a way that’s sustainable for our planet.” Read the entire mission statement here.
Why UBER Is A Great Portfolio Add
To put in terms any Californian would understand, UBER is HELLA buyable right now. Since hitting a high of $64.05 per share in December 2020, UBER has dropped down into the $30 per share range, and we believe that it is set up for a strong rebound. The significant decline in UBER’s stock price is likely part of the greater tech stock reset because the industry as a whole was producing record highs during the pandemic.
With UBER, we are investing in the future of mobility, delivery, and freight. The sharing economy is growing. As car prices increase, car ownership will inevitably decline. People will continue to look for better options for short-distance travel. That is where UBER, LYFT, buses, and trains come into play. Rideshares are more convenient and more private than trains and buses. Those two factors, plus their general affordability, give rideshares an edge for growth as time goes on.
In the delivery market, Uber Eats has the second largest market share. As of March 2021, DoorDash has a market share of 55 percent, and Uber Eats held the second-highest share, with 22 percent, according to Statista. Grubhub is a distant third with around 15% of the market share.
In 2021, Morgan Stanley’s transportation research team put a value of $3.5B on Uber Freight.
UBER’s presence and market share in multiple industries give it a great chance to succeed.
UBER vs. LYFT
If you believe in the future of the 5 trillion dollar mobility market, you are likely to invest in either UBER or LYFT. They are trading around the same price right now, so why UBER over LYFT? UBER is already larger and has more growth potential than LYFT.
According to Google Finance, UBER’s market cap as of writing this article is 67.32B vs. LYFT’s 12.65B.
UBER is in over 70 countries, while LYFT is only in two.
UBER Freight is in a 3.8 trillion dollar market.
UBER Delivery is in a 5 trillion dollar market.
LYFT is on in the mobility market.
In short, UBER is better positioned for growth than LYFT because it is a more prominent company in the rideshare market and has gone into other industries that offer tremendous opportunities.
Key Takeaways
In our opinion, UBER’s stock price is undervalued given that the company’s rideshare bookings and profitability have reached pre-pandemic levels, its delivery is sustaining growth and breaking even, and its freight business has tons of potential. UBER is a BUY.
