$UBER - Transition to a complete Software Applications Company
Everyone is well aware that Uber ($UBER:NASDAQ) disrupted the transportation industry starting in 2009. Then called Ubercab, it was infamous for its management practices and regulatory troubles. However, since the arrival of its new CEO Dara Khosrowshahi, the company has become far more agreeable to investors and regulators. It turned profitable in 2023 and for 2024, had a net income of $2.8Bn on the revenues of $43.9Bn and stock has also risen ~4.5x since the lows of June 2022. Today, it has 180Mn monthly active users and a 40% share of global market - Nearest competitor is Didi with a 24% share. I started looking at Uber because of its high ROIC (consistently making money at more than its cost of capital). The PE also looks low due to earnings inflated by one time items. As I looked into it more and more, I found that it is an absolutely compelling business to invest in. As it stands today, it consistently ticks all the right boxes - Consistently growing gross bookings and ...