Do You Believe in the Upside Potential of Uber Technologies (UBER)?

Optimist Fund, an investment management company, released its first quarter 2025 investor letter. A copy of the letter can be downloaded here. The first quarter was characterized by significant volatility, influenced by geopolitical tensions and uncertainties in global trade policy. While these macroeconomic factors caused short-term market fluctuations, they do not alter the firm’s long-term investment strategy or expectations for returns. The fund returned -4.9% in Q1 compared to -7.5% for its benchmark. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first-quarter 2025 investor letter, Optimist Fund 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 13.86%, and its shares gained 22.85% of their value over the last 52 weeks. On May 8, 2025, Uber Technologies, Inc. (NYSE:UBER) stock closed at $82.30 per share with a market capitalization of $172.103 billion.

Optimist Fund stated the following regarding Uber Technologies, Inc. (NYSE:UBER) in its Q1 2025 investor letter:

"Uber Technologies, Inc. (NYSE:UBER) – Uber posted its strongest quarter yet, with gross bookings rising 18% year-over-year to $44.2 billion and revenue growing 20% to $12.0 billion. Adjusted EBITDA jumped 44% to $1.8 billion, fueled by record demand across both Mobility and Delivery, while free cash flow reached $1.7 billion. Exceeding its three-year financial targets, the company heads into 2025 with accelerating momentum and emerging upside from autonomous vehicles. Uber’s growing free cash flow profile is attracting broader investor attention—including a recent investment from renowned value investor Bill Ackman. Our investment thesis remains intact."

Uber Technologies, Inc. (NYSE:UBER) is in 10th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 166 hedge fund portfolios held Uber Technologies, Inc. (NYSE:UBER) at the end of the fourth quarter compared to 136 in the third quarter. While we acknowledge the potential of Uber Technologies, Inc. (NYSE:UBER) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we covered Uber Technologies, Inc. (NYSE:UBER) and shared the list of stocks on Jim Cramer’s radar. In addition, please check out our hedge fund investor letters Q1 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.