The Steppe Eagle OEIC Ltd on Uber Technologies, Inc.
Thesis
Uber is viewed as a large global transportation platform spanning rides, delivery and freight, with more than $53 billion of annual sales and continued double-digit growth. The fund highlights profitability since 2023, free-cash-flow margins that have reached 15%, falling debt relative to assets and a strong global operating footprint. Its valuation work produces a broad value range, with $65-90 described as the more reasonable range, while the fund's average purchase price is $70.7. The manager considers Uber big and durable enough to merit about a 5% position as a staple-like holding. P(1) Harry Qelm Baabsman Steppe…
“Uber is big & strong, connected to tangible operations worldwide; it's worth 5% as some sort of staple.”
Key risks
- The sustainability of the current free-cash-flow margin is uncertain
- Potential shareholder dilution over the long term