Re-Iterating UBER $1 Trillion
Nine months ago I made the bold prediction that UBER (UBER) will one day be a $1 trillion company. Today I want to re-iterate that call in wake of their 3Q24 earnings report out this morning which has caused the shares to decline 6% in the premarket.
The report was excellent but perhaps Wall Street took issue with Gross Billings of $41.0 billion which were only +16% compared to a year ago and right smack in the middle of UBER’s guidance for the quarter three months ago. For me, it’s an opportunity to reacquire the shares I sold a few weeks ago when the stock surged in response to Tesla’s unimpressive robotaxi event.
As far as I’m concerned, everything continues to suggest that UBER is firing on all cylinders. Revenue +20%, Adjusted EBITDA $1.69 billion (an all time high), Free Cash Flow $2.1 billion (an all time high), GAAP Operating Income over $1 billion for the first time. 4Q24 guidance was similarly stellar calling for Bookings of $42.75-$44.25 billion, Adjusted EBITDA of $1.78-$1.88 billion – both all time highs.
To get to $1 trillion UBER shares would have to reach $464.16 from a close yesterday of $79.43. It’s not going to happen overnight but I believe patient investors will see it happen in the next decade.
Let Wall Street quibble with the quarter. It just provides an opportunity for investors with a longer term perspective to pick up shares in this juggernaut.
Disclosure: Top Gun is long shares of UBER.