Uber: 27% Below IPO Price, 12% Net Cash, Torque To Post-Pandemic Recovery

Summary

  • UBER trades 27% below its IPO price of 2019.
  • The company used the pandemic to dramatically reduce fixed costs - the company generated an Adjusted EBITDA profit in the latest quarter.
  • The company has net cash and equity investments equal to 12% of the market cap.
  • I project substantial upside moving forward from current levels.
  • Looking for a portfolio of ideas like this one? Members of Best Of Breed get exclusive access to our model portfolio. Learn More »

Mid aged man sitting comfortably in his car

Dobrila Vignjevic/E+ via Getty Images

Unlike many other tech stocks, Uber Technologies Inc. (NYSE:UBER) has not seen its stock crushed over the past few months by nearly the same degree. On the flipside, UBER is still falling after peaking in

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This article was written by

35.11K Followers

Julian Lin is a financial analyst. He finds undervalued companies with secular growth that appreciate over time. His approach is to look for companies with strong balance sheets and management teams in sectors with long growth runways.

Julian is the leader of the investing group Best Of Breed Growth Stocks where he only shares positions in stocks which have a large probability of delivering large alpha relative to the S&P 500. He also combines growth-oriented principles with strict valuation hurdles to add an additional layer to the conventional margin of safety. Features include: exclusive access to Julian's highest conviction picks, full stock research reports, real-time trade alerts, macro market analysis, individual industry reports, a filtered watchlist, and community chat with access to Julian 24/7. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am long all holdings of the Best of Breed portfolio.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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