Growth stock investing is not my forte. I’m a macro guy first and a value guy second. But Uber (UBER) is a growth stock that is just too good to pass up.
UBER is divided into two segments: Mobility and Delivery. Mobility is the cars that take you from one place to another. Delivery delivers food like DoorDash. Combined the two segments had $34 billion in Gross Bookings in 3Q23 – an all time high. And UBER guided 4Q23 Gross Bookings to $36.5-$37.5 billion. In addition, UBER is approaching real profitability. Adjusted EBITDA should be ~$4 billion this year and sustainable GAAP profitability is just around the corner.
While UBER is expensive and has had a great run – and there will be pullbacks – I believe the company has turned the corner and will be one of the great growth stocks of the next decade. I’ve been it since August 1, 2023 at $47 (see blog link) and I intend to hold for many years to come. In fact, I suspect UBER could be the next trillion dollar company.
UBER reports 4Q23 earnings Wednesday morning.