Uber's Uptrend: TD Cowen's Positive Outlook on the Company's Direction

In the dynamic world of technology stocks, some companies stand out as "best-of-breed," demonstrating resilience and strong management that makes them enduring investments. As interest rates rise, the market's reaction has been a decline in tech stocks, with notable drops in Salesforce, ServiceNow, Apple, Facebook, and Amazon. However, one company that has caught the eye of analysts is Uber, which has been on an uptrend following a positive outlook from TD Cowen.



Uber's core Mobility and Delivery businesses have been driving its financial growth, with rising margins contributing to its overall performance. The company's expansion into less dense markets with limited rideshare coverage, along with the growth of its Delivery operations, particularly in grocery and other verticals, has been a significant factor in its success. TD Cowen expects Uber's EBITDA to grow at a 40% rate from 2023 to 2026, with nearly 90% converting to free cash flow, supporting accelerating share buybacks.



Maintaining a balanced portfolio with both growth and value stocks is crucial in navigating the current market. While it may be tempting to sell strong, enduring companies like Amazon and Apple during market downturns, the author advises against it. These companies have proven management and the capability to manage challenges effectively. However, the author remains cautious about Facebook, citing potential advertiser pushback and content management issues as concerns.

In conclusion, Uber's positive outlook from TD Cowen, coupled with its strong financial performance and growth prospects, makes it an attractive investment opportunity. The company's ability to adapt and expand its business models, along with its robust management, positions it well for long-term success. While the author remains cautious about Facebook, the overall confidence in companies like Apple, Salesforce, and Amazon is reaffirmed. The author's personal investment holdings in these companies and the offered investment alert service reflect a commitment to informed market predictions and thoughtful asset allocation.