Past performance does not predict future results. Informational only, not investment advice.
Macdonald Andrew (See Remarks at Uber Technologies, Inc) reported an open-market purchase of 70,000 shares of UBER at an average $75.83, roughly $5,308,064, in a Form 4 filed 2026-09-08.
Uber is undervalued at 12-15x forward earnings despite strong fundamentals: 20%+ YoY bookings growth, 33% EBITDA growth, and expanding margins. The autonomous vehicle overhang is overblown; Uber is positioned as the demand aggregation layer that AV operators will need, and a valuation mismatch exists—Uber trades at a discount to Lyft despite higher scale and diversification, with significant optionality from advertising, Uber for Business, and the Delivery Hero stake not yet priced in.
Uber presents compelling long-term returns potential driven by EPS growth, with scenario analysis suggesting 15-32% 5Y CAGR by 2031 depending on multiple expansion. The combination of improving margins and durable growth fits the GARP framework well.
Uber has become a world-class asset-light cash generator ($10B+ TTM FCF on minimal capex), trading cheaply at 2.8x sales versus its historical 4.1x average. The company's $10B+ robotaxi commitment and €14.2B Delivery Hero acquisition, funded by enormous FCF, represent capital-efficient strategic bets on future growth, with AV partnerships already scaling meaningfully.
Author is bullish on Uber before earnings, taking a leveraged call position with 22x multiplier, betting on a significant upside move around the earnings event.
Uber masked weak mobility segment growth by cutting prices and raising eats prices to meet revenue targets. The mobility side is price-sensitive and declining, while eats is being squeezed; this suggests deteriorating consumer health and reliance on price-conscious riders and drivers.
Author holds UBER as part of a $2M portfolio that has appreciated significantly. Despite expecting near-term market pulldown, maintaining long stock position while hedging with covered calls.
End of results.