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• Panic Selling = Big Mistake ❌

• Copy Politician’s Trades 🧑‍⚖️

Panic Selling = Big Mistake ❌

Never sell just because everyone else is. If you do the same as everyone else, you’ll probably get the same results as them too. And that’s not good. I mean, look at the stats on the platform I’m using to build my $100,000 account.

Why am I telling you this?

Because Uber’s stock is in freefall down over 30% from October highs. So what’s going on here? One word. Robotaxis.

Investors are scared that the iRobot movie plot is going to start with taxis & drive uber off the map. I think the whole thing’s been overblown. If anything, it should be a good thing for Uber.

 Robotaxi’s Aren’t A Problem 🤖

Alphabet’s Waymo & Tesla are shoveling cash into robotaxi fleets. That’s cool & I’m all for it but Uber have a pretty fat moat in the taxi ranks.

Uber is already the go-to app for 160M+ riders. It’s a household name. It’s a verb. Would you want to be the guy in charge of convincing people to switch to a brand-new app for their rides? Nah. Me neither.

It makes way more sense to team up with Uber. Why? Because it’s cheaper & faster to slap your robotaxis on Uber’s platform than to burn billions building your own. They’ve already got a list of friends they’ve made that want to partner up with them.

Tesla & Waymo would need years (plus a whole bunch of cash) to even come close to Uber’s scale.

 Why this is a Good thing for Uber💡

Let me walk you through the equation. Stay with me.

Robotaxis join Uber’s platform = lower cost per mile = Lower ride costs = more people riding = higher gross bookings for Uber.

It’s a perfect example of using AI to improve efficiency, cut costs & boost the top line & profits.

Are you starting to see why I think a 30% sell off seems like a silly reaction but great for my pockets?

 Uber By The Numbers📈

Even in the midst of all this, Uber’s fundamentals keep getting stronger.

Recent earnings we’re a beat across the board & analysts have been quick to upgrade their expectations for the next time around.

• Fair value: ~$90 looks to be where the analysts have settled (that’d be a 50% gain from current price)

• 5-year expected returns: A juicy 25.8% CAGR.

• Recent performance: Gross bookings jumped 16% year-over-year in Q3, hitting $40.97B. (looks like they don’t even need the robotaxis to see their gross bookings grow 👀 ) Free cash flow? Up 133% year-over-year to $2.1B.

Try not to focus on the headlines. Uber’s fundamentals are thriving. Cash is flowing, bookings are growing & the user base is as strong as it’s ever been.

My Plan🚦 

I really think Robotaxis aren’t killing Uber. If anything, they push Uber into numbers that would’ve never been possible without them.

I get why it looks scary on the surface but that’s why I dive beneath it! Uber is way undervalued right now. Such a sharp, big discount are the kind of set ups I dream about.

$60/share is criminally cheap for Uber with the numbers they’ve been showing.

Orders are set for market open for ~1% of the account to go to Uber. If the stock keeps declining, I might even look to bump that up a little.

First target will be $90 but if I’m honest? I want to hold this for the long term. Robotaxi + Uber user base combo is super underrated right now & it’s going to produce some outrageous numbers down the line.

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That’s all! See you same time next week 👋 

P.S Hit reply & let me know what you thought of this weeks newsletter. All feedback is welcomed ❤️