After Prolonged Monitoring, Polen Focus Growth Strategy Initiated a Position in Uber (UBER)

Polen Capital, an investment management company, released its “Polen Focus Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The equity market continued its strong performance in the third quarter of 2025, driven by enthusiasm for generative AI and strength in the semiconductor sector. In the quarter, the focus shifted to positive economic surprises, fiscal policy optimism, and better-than-expected corporate earnings. In the quarter, the strategy returned 3.34% (gross) and 3.14% (net) compared to 10.51% for the Russell 1000 Growth Index and 8.12% 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 third-quarter 2025 investor letter, Polen Focus 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 -3.83%, and its shares gained 13.08% of their value over the last 52 weeks. On October 13, 2025, Uber Technologies, Inc. (NYSE:UBER) stock closed at $94.08 per share, with a market capitalization of $196.196 billion.

Polen Focus Growth Strategy stated the following regarding Uber Technologies, Inc. (NYSE:UBER) in its third quarter 2025 investor letter:

"Additionally, we acquired a new position in Uber Technologies, Inc. (NYSE:UBER) during the quarter. We have followed Uber for many years and believe their scale, network effects, growth opportunities and market position, combined with their current valuation make a compelling investment thesis. They have become one of the most recognizable consumer brands in the world and anticipate nearly $200bn in booking transactions for 2025. Over the past three years, they have compounded revenues at 36%, EBITDA at 69% and FCF margins have gone from negative to mid-teens. While the threat of autonomous vehicles looms and is likely weighing on the valuation, we believe that threat is many years away and so view that risk as low, and we expect Uber to compound earnings at ~20% p.a. over the next five years. In fact, we think the fastest way for autonomous vehicle companies to scale is to partner with a large and highly utilized platform like Uber who has dominant market position where it competes."

Uber Technologies, Inc. (NYSE:UBER) is in the 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 Clearbridge Global Value Improvers Strategy's views on the company. In addition, please check out our hedge fund investor letters Q3 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.