Uber Technologies: Recent Underperformance Serves Up An Early Christmas Gift (NYSE:UBER)

Editor's note: Seeking Alpha is proud to welcome Jack Dupuy, CFA as a new contributing analyst. You can become one too! Share your best investment idea by submitting your article for review to our editors. Get published, earn money, and unlock exclusive SA Premium access. Uber Technologies: Recent Underperformance Serves Up An Early Christmas Gift Summary Uber Technologies is undervalued at 14.7x forward earnings, with current underperformance offering a compelling buying opportunity. Q3 results show strong momentum: trips and gross bookings are up 22% and 21%, respectively, with 20% y/y revenue growth and 33% Adj. EBITDA growth. Significant white space remains-only 15% of top-market populations use Uber, and cross-selling mobility and delivery is a key growth lever. AV competition risk is overstated; UBER’s dual strategy of partnerships and building its own AV fleet positions it to capture future upside. Analyst’s Disclosure: I/we have a beneficial long position in the shares of UBER, GOOGL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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