Uber: Navigating A Changing World (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• UBER has done a good job transitioning toward positive GAAP EBIT over the past 3 years. I believe there is ample scope for margin expansion to ~35% over the longer term.
• Will autonomous vehicle makers price Uber out of the market? Or collaborate to achieve faster scalability? I am tracking gross bookings to assess the risk scenarios.
• The Company's valuations are at a deserved premium vs. peers given its market-leading position. However, the extent of the premium is lower than normal, which is good for bullish arguments.
• Relative technicals vs. S&P 500 are in a bearish flow but near monthly support levels. I anticipate sideward price action ahead.
• Another wildcard is how Uber's bargaining power will evolve with competitors and with business partners. To assess this in concrete terms, I am tracking take rate/commission rate dynamics.

Read the full article here.