Uber Technologies (UBER): The Hedge Fund Darling Under $100 – Is It a Buy?
23min read 
Institutional investors are sending mixed signals about Uber Technologies (NYSE:UBER), but the stock’s positioning under $100—and its appeal to hedge funds—suggests intriguing opportunities for investors. With a target price of $90 set by Wells Fargo in early April 2025 and a median analyst target of $85, UBER is primed for growth. But does the stock’s performance and institutional activity justify its status as a top buy under $100? Let’s dissect the data.
Analyst Sentiment: Bullish but Cautious
Analysts have been cautiously optimistic about UBER. While the $90 price target from Wells Fargo’s Ken Gawrelski is the highest among recent estimates, other institutions like Goldman Sachs and Bank of America have also highlighted upside potential, with targets as high as $96 in late 2024. However, the stock’s $58.99 closing price as of August 2024 (up 30.5% year-over-year) indicates momentum, but it remains far below these targets.
Institutional Crosscurrents: Buy-Side vs. Sell-Side
The real story lies in the contradictory moves of major institutional investors:
- FMR LLC (Fidelity) slashed its stake by 57.1% in Q4 2024, unloading $3.37 billion worth of shares.
- Capital Research Global Investors, conversely, boosted holdings by 79%, adding $3.14 billion.
- EdgeWood Management LLC nearly exited entirely, selling 99.6% of its holdings.
The net result? Total institutional ownership remains high at 94.4% of outstanding shares, with Vanguard and BlackRock as top holders. A standout move came from Fort Washington Investment Advisors, which opened a $38.8 million position in Q1 2025—a clear vote of confidence.
Government Contracts: A Steady Revenue Stream?
UBER’s recent $289,829 in government awards—including military and non-emergency transport contracts—adds credibility. While these figures are modest, they signal diversification beyond ride-sharing and could stabilize cash flow.
Congressional Trading: A Cautionary Signal?
Members of Congress reported 10 transactions in UBER stock between January and March 2025, with four buys and six sells. Notably, Representative Josh Gottheimer sold up to $60,000 across four trades. While such moves don’t always reflect market fundamentals, they may hint at near-term uncertainty.
The Bottom Line: A Stock to Buy Under $100?
The data paints a compelling picture for UBER as a buy under $100, but with caveats:
1. Analyst Optimism: The $90 target implies a ~50% upside from its August 2024 price, supported by improving margins and expansion into delivery and freight services.
2. Institutional Split: While some funds are exiting, the $38.8 million new position and Capital Research’s aggressive buying suggest a strategic long-term play.
3. Valuation: At under $100, UBER trades at a P/E ratio of 22 (as of mid-2024), which is reasonable for a growth stock in a rebounding economy.
Conclusion
Uber Technologies is a high-conviction pick under $100, backed by analyst targets, institutional buying from key players like Capital Research, and government contract stability. Despite Fidelity’s retreat, the $90 price target and the stock’s 30.5% year-over-year growth underscore its potential. However, investors must weigh risks: regulatory hurdles, competition, and the possibility of further institutional sell-offs.
For now, UBER’s mix of growth, institutional support, and undervalued status makes it a top contender for aggressive investors. As Wells Fargo’s $90 target looms, the question isn’t whether to buy—it’s whether to act before others do.
Final Note: Always conduct your own research and consult a financial advisor before making investment decisions.
