Uber Technologies (UBER) was the Worst Performer: NewBridge Large Cap Growth Equity

NewBridge Asset Management, an investment management company, recently released its Q4 2025 letter for “NewBridge Large Cap Growth Equity Strategy”. A copy of the letter can be downloaded here. Equity markets continued their upward momentum in the fourth quarter, driven by resilient economic growth and solid corporate returns. In the fourth quarter, large-cap growth outperformed, while in the third quarter, small-cap and value equities exceeded the growth strategy. The NewBridge Large Cap Growth Strategy generated a positive return in the quarter, but lagged behind the benchmark, the Russell 1000® Growth Index. Most portfolio companies exceeded quarterly expectations, but a few faced declines. The biggest challenge was the contrasting returns between Uber Technologies, Inc., held in significant amounts, and Tesla, Inc., which was not owned by the portfolio. The market environment was generally favorable for the portfolio in the fourth quarter. The firm remains confident in its industry-leading companies, which are poised to deliver attractive financial results despite potential market volatility. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, NewBridge Large Cap Growth Equity Strategy highlighted Uber Technologies, Inc. (NYSE:UBER). Uber Technologies, Inc. (NYSE:UBER) is a multinational technology company that operates through mobility, delivery, and freight segments. Uber Technologies, Inc. (NYSE:UBER) shares traded between $60.63 and $101.99 over the past 52 weeks. On January 26, 2026, Uber Technologies, Inc. (NYSE:UBER) stock closed at $81.98 per share. One-month return of Uber Technologies, Inc. (NYSE:UBER) was 0.59%, and its shares lost 14.98% of their value over the last three months. Uber Technologies, Inc. (NYSE:UBER) has a market capitalization of $170.963 billion.

NewBridge Large Cap Growth Equity Strategy stated the following regarding Uber Technologies, Inc. (NYSE:UBER) in its fourth quarter 2025 investor letter:

"The portfolio’s biggest challenge during the quarter was the contrast in the returns from Uber Technologies, Inc. (NYSE:UBER) and Tesla, Inc. The portfolio held a significant position in Uber, while it did not own Tesla. Uber was down nearly 19% during the quarter, while Tesla was up over 60% over the same period. As each company vies for future autonomous vehicle ridesharing revenue, the nearly 80% quarterly spread in stock returns seemed overdone given the time it will take Tesla to get to scale. Uber Technologies, Inc. was the worst performer. As outlined above, Uber has been stuck on the wrong side of the “Trump trade” that has favored Tesla. Uber treaded water in November, as perceived competition from Tesla’s full-self-driving efforts may crimp Uber over time. Unfortunately, this belief continued in December and was exacerbated by Waymo’s (Uber’s autonomous vehicle [AV] partner in Phoenix and Austin) decision to not partner with Uber in Miami in 2026. We believe that Uber will have a seat at the AV table, as its network platform is the world’s largest. In the meantime, it is hard to prove or disprove how successful potential competitors will be. For example, time is the key here, as Tesla’s ability to get to scale will likely take years. We believe that fundamentals at Uber remain attractive, but it has been fighting a perceived advantage that Tesla may or may not hold in the coming years."

Uber Technologies, Inc. (NYSE:UBER) is in 10th position on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 143 hedge fund portfolios held Uber Technologies, Inc. (NYSE:UBER) at the end of the third quarter, compared to 152 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 stocks to buy according to Billionaire Bill Ackman. In addition, please check out our hedge fund investor letters Q4 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.