Latest news with #AppaloosaManagement
Yahoo
25-06-2025
- Business
- Yahoo
Billionaire David Tepper Doubled His Stake In This Unstoppable Growth Stock
Uber's financial results have been strong in recent years. The company has significant opportunities and a strong moat. Penetration is still surprisingly low, providing room for further growth. 10 stocks we like better than Uber Technologies › Though some might think recent market volatility warrants staying away from equities for a while, plenty of investors disagree, including some famous names on Wall Street. Take David Tepper, billionaire founder and CEO of Appaloosa Management, a hedge fund. The successful money manager and his team decreased or closed their positions in several stocks during the first quarter. However, Tepper also made some notable buy decisions, including for Uber Technologies (NYSE: UBER). The hedge fund more than doubled its stake in the ride-hailing leader during the first period. Should investors follow Tepper's lead? Uber's stock is up 38% this year for a good reason. The company's business transformation continues, and it's showing up in its financial results. The ride-sharing leader has dealt with various issues in the past, including regulatory problems and persistent net losses, but things are now looking brighter than ever. Consider Uber's first-quarter results, during which its revenue jumped by 14% year over year to $11.5 billion. Trips and gross bookings increased by healthy amounts, and the company is now showing a profit on the bottom line. Net income was $1.8 billion, compared to a net loss of $654 million reported in the year-ago period. Free cash flow is also trending up; it soared by 66% in the period to $2.3 billion. Although Tepper didn't see these numbers before increasing his stake in the company by 113% during the first quarter, Uber has been delivering excellent results for some time now. His move looks smart in that broader context, and it seems even more so when we focus on the company's prospects. Some investors worried for a while whether Uber's model, which relies heavily on freelancers, could ever be profitable. The company has proved that it can, but can it sustain it for a while? In my view, it is still looking at huge growth opportunities, given the convenience of its services, significant demographic shifts, relatively low penetration rates, and its competitive edge. Let's address each point in turn. First, the company has disrupted the taxi industry because of its convenience. Getting a ride somewhere has never been easier. The company's food delivery option, Uber Eats, has the same selling points. That's why they are increasingly popular. Second, the data shows that younger generations, particularly Gen Z, are getting driver's licenses at lower rates than older generations did. So, they are less likely to own cars and drive. While there are likely many reasons for this -- it's hard to attribute this shift to Uber -- it still means there should be continued growth for the services it offers. Even people without cars need to go places, after all. Third, the company has surprisingly low penetration even in its most mature markets. As of the end of 2023, a little under 20% of people aged 18 and up took at least one trip per month in Australia. That percentage was lower in the U.K. and even lower in the U.S. Perhaps it won't reach 100%, but as management points out, modest growth in relatively advanced markets like the U.S. would lead to a significant increase in its annual gross bookings. Lastly, the business benefits from a network effect. The more drivers who are in its system, the more value the platform offers riders. The same dynamic applies to Uber Eats and the number of restaurants that are plugged into it. The network effect grants the company a strong moat. However, it has risks, which include stiff competition and the rise of self-driving vehicles. Management should be able to handle both, though. Having a moat is one of the keys to performing well despite competition. And even though it looks like self-driving cars will eat the company's lunch, we're still some way off from the significant adoption of that technology. Furthermore, Uber has partnered with major companies in this field and is already adapting to this shift -- one more reason its long-term prospects are attractive. Interested investors should follow Tepper's lead and purchase shares. Before you buy stock in Uber Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Uber Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $689,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $906,556!* Now, it's worth noting Stock Advisor's total average return is 809% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool has a disclosure policy. Billionaire David Tepper Doubled His Stake In This Unstoppable Growth Stock was originally published by The Motley Fool
Globe and Mail
25-06-2025
- Business
- Globe and Mail
Billionaire David Tepper Doubled His Stake In This Unstoppable Growth Stock
Though some might think recent market volatility warrants staying away from equities for a while, plenty of investors disagree, including some famous names on Wall Street. Take David Tepper, billionaire founder and CEO of Appaloosa Management, a hedge fund. The successful money manager and his team decreased or closed their positions in several stocks during the first quarter. However, Tepper also made some notable buy decisions, including for Uber Technologies (NYSE: UBER). The hedge fund more than doubled its stake in the ride-hailing leader during the first period. Should investors follow Tepper's lead? Uber has officially turned the page Uber's stock is up 38% this year for a good reason. The company's business transformation continues, and it's showing up in its financial results. The ride-sharing leader has dealt with various issues in the past, including regulatory problems and persistent net losses, but things are now looking brighter than ever. Consider Uber's first-quarter results, during which its revenue jumped by 14% year over year to $11.5 billion. Trips and gross bookings increased by healthy amounts, and the company is now showing a profit on the bottom line. Net income was $1.8 billion, compared to a net loss of $654 million reported in the year-ago period. Free cash flow is also trending up; it soared by 66% in the period to $2.3 billion. Although Tepper didn't see these numbers before increasing his stake in the company by 113% during the first quarter, Uber has been delivering excellent results for some time now. His move looks smart in that broader context, and it seems even more so when we focus on the company's prospects. Attractive long-term prospects Some investors worried for a while whether Uber's model, which relies heavily on freelancers, could ever be profitable. The company has proved that it can, but can it sustain it for a while? In my view, it is still looking at huge growth opportunities, given the convenience of its services, significant demographic shifts, relatively low penetration rates, and its competitive edge. Let's address each point in turn. First, the company has disrupted the taxi industry because of its convenience. Getting a ride somewhere has never been easier. The company's food delivery option, Uber Eats, has the same selling points. That's why they are increasingly popular. Second, the data shows that younger generations, particularly Gen Z, are getting driver's licenses at lower rates than older generations did. So, they are less likely to own cars and drive. While there are likely many reasons for this -- it's hard to attribute this shift to Uber -- it still means there should be continued growth for the services it offers. Even people without cars need to go places, after all. Third, the company has surprisingly low penetration even in its most mature markets. As of the end of 2023, a little under 20% of people aged 18 and up took at least one trip per month in Australia. That percentage was lower in the U.K. and even lower in the U.S. Perhaps it won't reach 100%, but as management points out, modest growth in relatively advanced markets like the U.S. would lead to a significant increase in its annual gross bookings. Lastly, the business benefits from a network effect. The more drivers who are in its system, the more value the platform offers riders. The same dynamic applies to Uber Eats and the number of restaurants that are plugged into it. The network effect grants the company a strong moat. However, it has risks, which include stiff competition and the rise of self-driving vehicles. Management should be able to handle both, though. Having a moat is one of the keys to performing well despite competition. And even though it looks like self-driving cars will eat the company's lunch, we're still some way off from the significant adoption of that technology. Furthermore, Uber has partnered with major companies in this field and is already adapting to this shift -- one more reason its long-term prospects are attractive. Interested investors should follow Tepper's lead and purchase shares. Should you invest $1,000 in Uber Technologies right now? Before you buy stock in Uber Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Uber Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $689,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $906,556!* Now, it's worth noting Stock Advisor 's total average return is809% — a market-crushing outperformance compared to175%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025
Yahoo
04-06-2025
- Business
- Yahoo
Analyst Explains Why He Sold Alibaba Group (BABA) – ‘Gave This Trade 90 Days to Work'
CNBC host and analyst Joe Terranova recently said in a program that he sold Alibaba Group Holding Limited (NYSE:BABA). 'Bought it February 12th at 118, sold half at 135 the end of March, sold out of it today completely. Gave this the trade basically 90 days to work. It's right back to where I bought it initially. I know everyone's going to say "Well David Tepper in it." But David Ter's not calling me to tell me how he's managing the position.' Appaloosa Management of David Tepper owns 9.23 million shares of Alibaba Group Holding Ltd (NYSE:BABA) as of the end of the first quarter. An e-commerce platform displaying a wide range of products to customers online. Loomis Sayles Global Growth Fund stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q1 2025 investor letter: 'Alibaba Group Holding Limited (NYSE:BABA) is a leading China e-commerce and consumer-engagement platform provider, operating several businesses across commerce, technology, advertising, digital media and entertainment, logistics, payments, and local services. With over 40% of China's e-commerce transactions estimated to take place through its Taobao and Tmall marketplaces, we believe Alibaba's scale and brand would be difficult-to-replicate. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
04-06-2025
- Business
- Yahoo
Analyst Explains Why He Sold Alibaba Group (BABA) – ‘Gave This Trade 90 Days to Work'
CNBC host and analyst Joe Terranova recently said in a program that he sold Alibaba Group Holding Limited (NYSE:BABA). 'Bought it February 12th at 118, sold half at 135 the end of March, sold out of it today completely. Gave this the trade basically 90 days to work. It's right back to where I bought it initially. I know everyone's going to say "Well David Tepper in it." But David Ter's not calling me to tell me how he's managing the position.' Appaloosa Management of David Tepper owns 9.23 million shares of Alibaba Group Holding Ltd (NYSE:BABA) as of the end of the first quarter. An e-commerce platform displaying a wide range of products to customers online. Loomis Sayles Global Growth Fund stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q1 2025 investor letter: 'Alibaba Group Holding Limited (NYSE:BABA) is a leading China e-commerce and consumer-engagement platform provider, operating several businesses across commerce, technology, advertising, digital media and entertainment, logistics, payments, and local services. With over 40% of China's e-commerce transactions estimated to take place through its Taobao and Tmall marketplaces, we believe Alibaba's scale and brand would be difficult-to-replicate. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
03-06-2025
- Business
- Globe and Mail
This AI Giant Is Among the Top 5 Holdings of Billionaires David Tepper, Philippe Laffont, and Stephen Mandel Jr. -- and It's Not Nvidia
Investors, including billionaires, have generated enormous returns by investing in Nvidia (NASDAQ: NVDA) in recent years. The artificial intelligence (AI) chip giant climbed more than 800% from the start of 2023 through the end of last year as demand for its products and services soared. And with the AI market forecast to reach beyond $2 trillion a few years down the road, it's likely Nvidia will continue to benefit. But it's important to remember that Nvidia isn't the only attractive AI bet to be found. In fact, right now, some of the world's top investors are favoring another AI giant over Nvidia. This particular player is among the top five holdings of billionaires David Tepper of Appaloosa Management, Philippe Laffont of Coatue Management, and Stephen Mandel Jr. of Lone Pine Capital. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » This company, like Nvidia, already has brought in billions of dollars in revenue thanks to AI -- and could win as the AI boom continues. Let's find out more. These billionaires like technology stocks First, it's important to note that these three billionaires have significant positions in technology stocks, with other such players among their top 10 holdings. So they clearly believe in the AI revolution and are setting themselves up to potentially gain as AI becomes more and more a part of our daily lives and the operations at businesses of every size. For example, Tepper and Mandel each have three Magnificent Seven stocks among their 10 most heavily weighted holdings, and Laffont has four. So, which company has caught the eye of these technology-focused investors? None other than AI powerhouse Amazon (NASDAQ: AMZN). As of the first quarter of the year, Amazon is the third biggest stock position in Tepper's $8.3 billion portfolio, the second-biggest in Laffont's $22 billion portfolio, and the third- largest in Mandel's $11 billion fund. Here are the details: Tepper holds 2,510,000 Amazon shares, and the stock represents 5.7% of the portfolio. Laffont holds 10,753,808 Amazon shares, and the stock represents 9.02% of his portfolio. Mandel holds 4,352,740 Amazon shares, and they represent 7.15% of his portfolio. This is according to the billionaires' 13Fs, filings that managers of $100 million or more must submit to the Securities and Exchange Commission on a quarterly basis. Is this AI player right for you? Now the question is: These billionaires clearly see Amazon as a fantastic AI investment, but is it right for you too? After all, though billionaires have demonstrated their investment expertise, some of their moves may not suit your investment strategy or comfort with risk. It's important to take these elements into consideration before diving in. You probably are most familiar with Amazon thanks to its e-commerce business. It's built an empire in the area, and one that extends around the globe. The operation helps the company generate billions of dollars in revenue year after year, and its extensive fulfillment network and popular subscription program Prime offer it a significant competitive advantage, or moat. But Amazon also is becoming a leader in AI, using the technology to streamline those e-commerce operations and even developing and selling AI products and services to customers through its Amazon Web Services (AWS) unit. In fact, due to Amazon's aggressive push into the AI space, AWS recently delivered a $117 billion annual revenue run rate. So Amazon already is generating significant growth from this hot technology. Well positioned for a win And since AWS is the world's leading cloud services provider, it's in the perfect spot to capture more and more business. As AWS customers develop AI projects, they have all that they need right at their fingertips on AWS -- from access to top chips like Nvidia's to a fully managed service that tailors popular large language models to a customer's needs. The AI buildout continues, and AWS is set to gain from this and from the next stages of AI, as customers apply AI to their businesses more and more. Meanwhile, Amazon offers a solid track record of earnings growth and has demonstrated its ability to manage turbulent times and go on to grow. For example, the company revamped its cost structure when higher inflation hurt earnings a few years ago and returned to growth within a year. All of this shows that Amazon is well positioned to benefit from the AI boom, but the stock also offers you security thanks to its well-established and profitable e-commerce and cloud businesses. And this means that, whether you're a cautious or aggressive investor, you may, like the billionaires, want to make Amazon one of your key AI bets. Should you invest $1,000 in Amazon right now? Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor 's total average return is979% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Nvidia. The Motley Fool has a disclosure policy.
