What Makes Uber Technologies (UBER) a Lucrative Investment?

Burke Wealth Management, an investment management company, released its “Focused Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter was marked by significant volatility. Against this backdrop, the strategy returned +15.9% in the quarter compared to +10.9% for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Burke Wealth Management highlighted stocks such as Uber Technologies, Inc. (NYSE:UBER). Uber Technologies, Inc. (NYSE:UBER) develops and operates proprietary technology applications that operate through Mobility, Delivery, and Freight segments. The one-month return of Uber Technologies, Inc. (NYSE:UBER) was 6.83%, and its shares gained 33.30% of their value over the last 52 weeks. On August 22, 2025, Uber Technologies, Inc. (NYSE:UBER) stock closed at $96.79 per share, with a market capitalization of $201.848 billion.

Burke Wealth Management stated the following regarding Uber Technologies, Inc. (NYSE:UBER) in its second quarter 2025 investor letter:

"Uber Technologies, Inc. (NYSE:UBER): We added Uber to the portfolio at a 4% weighting in May. Uber is the world’s leading platform in both mobility and delivery. My guess is that all of you reading this letter have used Uber at some point in your lives and I am certain that those of you with college aged children have seen more than your fair share of Uber Eats charges on the old credit card bill. From a financial profile, Uber checks all of the boxes we look for in an investment: revenue driven profit growth, strong free cash flow, fortress balance sheet. Still, despite these obvious positive attributes, the stock is a real battleground based on your view of two key questions that will determine the long-term future of this business: Is autonomous driving a benefit or detriment to Uber? And what is the ultimate competitive balance in Delivery? Of these two, the autonomous driving question is the most pressing and most controversial so we will start there…” (Click here to read the full text)

Uber Technologies, Inc. (NYSE:UBER) is in 10th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 152 hedge fund portfolios held Uber Technologies, Inc. (NYSE:UBER) at the end of the second quarter, which was 145 in the previous quarter. While we acknowledge the potential of Uber Technologies, Inc. (NYSE:UBER) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Uber Technologies, Inc. (NYSE:UBER) and shared the list of best IT stocks to buy for the long term. Uber Technologies, Inc. (NYSE:UBER) was a standout performer of RiverPark Large Growth Fund during Q2 2025. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.