Pershing Square Capital Management, L.P. on Uber Technologies
Thesis
UBER is a high-quality business positioned for rapid earnings growth, trading at a compelling valuation due to misplaced industry concerns. The medium-term outlook suggests continued teens-plus bookings growth and 30%+ EPS growth, incorporating planned AV investments. At only 21x NTM earnings, the stock is inexpensive, and we believe concerns around autonomous vehicles are misguided.
“High-quality business positioned for continued rapid earnings growth trading at a compelling valuation on misplaced industry concerns... Medium-term outlook positions UBER for continued teens-plus bookings growth and 30%+ growth in earnings-per-share... Newly issued non-GAAP earnings disclosure highlights how inexpensive UBER remains at only 21x NTM earnings”