Sands Capital Select Growth Strategy Sold Uber Technologies (UBER) due to Heightened Uncertainty

Sands Capital, an investment management company, released its “Sands Capital Select Growth Strategy” Q2 2025 investor letter. A copy of the letter can be downloaded here.  U.S. large-cap growth equities recovered from a sharp sell-off in early April by delivering strong returns in the second quarter. The quarterly performance was driven by muted inflation, strong corporate earnings, and improving sentiment around artificial intelligence (AI) and global trade. The portfolio returned 27.7% in the quarter, outperforming the benchmark Russell 1000 Growth Index's 17.8% gain. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its second-quarter 2025 investor letter, Sands Capital Select Growth Strategy 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 3.70%, and its shares gained 35.82% of their value over the last 52 weeks. On September 15, 2025, Uber Technologies, Inc. (NYSE:UBER) stock closed at $98.85 per share, with a market capitalization of $206.144 billion.

Sands Capital Select Growth Strategy stated the following regarding Uber Technologies, Inc. (NYSE:UBER) in its second quarter 2025 investor letter:

"We sold Uber Technologies, Inc. (NYSE:UBER) after a holding period of more than five years. After initiating the investment in February 2020, Uber navigated a pandemic-related slowdown and grew bookings by over 150 percent. As the business scaled, our investment thesis played out, with profitability expanding across both the mobility and delivery segments.

More recently, however, the return potential has been tempered by concerns that autonomous vehicles could disrupt ride-hailing. While our research indicates that Uber is well positioned to aggregate supply from multiple autonomous transportation providers, the future of mobility remains highly uncertain. Given the heightened uncertainty, we reallocated capital to higher-conviction opportunities."

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 tech stocks to buy for the long term. Uber Technologies, Inc. (NYSE:UBER) contributed to Brown Advisory Large-Cap Growth Strategy's performance in the 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.