UBER

There are other companies where artificial intelligence or self-driving is expected to revolutionize them, such as Uber. I think there are fields, and that's an incredibly interesting name.

You are paying less than the market price for a company that is growing at 20-30% annually.

Uber stock has been absolutely crushed, down almost 31% from its high. Uber's own CEO walked into the market and bought $10 million of Uber stock with his own money. 6 days before that, another top executive bought 5.3 million.

And some of the biggest investors on Wall Street have been piling in as well. Are robo taxis about to destroy Uber? Or will they turn it into one of the biggest winners of the entire self-driving revolution?

I think Uber is way undervalued at this point. It's trading at $68. Now, there's no guarantee that this one goes up soon. We've seen companies trade at undervaluations for long periods of time.

This one's trading at a 17 Ford PE ratio. While all the economics look really good, the big concern is robo taxis. the Cyber Cab, the Whimo, the Zuks, all these companies competing with Uber.

It's the first real competition that they faced.

So when we did a revisit of Uber a couple weeks ago, I didn't put together an updated valuation primarily because I thought things in some sense hadn't changed too fundamentally.

Not that the financial situation hadn't changed, right? Uber has compounded its earnings and retained value a great deal.

Which stock excites me the most? I don't want a repeat of what happened last time. But for the record, I still love Uber, MSG Sports, and Atlanta Braves Holdings. Great shares.

Give me an update on Uber's thesis, because my view is that nothing they say matters. It is difficult to refute a negative claim. The market doesn't care at all. Okay, so...how much did Dara just buy?

How much did he just spend to buy shares for himself? I think 10 million. And the financial manager, I think, bought it for five. The stock is still not rising. Okay. The stock fell the following day.

So now they are buying back the shares. Institutional buyback. Insiders buy. They have actual and tangible partnerships for self-driving taxis on the streets of multiple cities with multiple partners.

That doesn't matter. This stock looks like it will trade at 12 times earnings. In terms of direction, this appears to be the path it is taking. I think it is almost impossible for the stock to remain the same if it continues to grow at a rate of 20 to 30% annually.

No, I can't tell you what the trigger is for that. Hmm, but you have a great business and this is a stock you should hold onto. I think this is an example of a buy-and-hold strategy because the business fundamentals are great.

Why don't they buy back the shares? Why don't they buy back 20% of the shares? Why don't they make a purchase offer? Yes. If you advise Uber, and talk to investor relations officers, the treasurer, and the CEO, virtually, you have been involved with many stocks that have been significantly undervalued for their growth over the years.

How do you get to a happy ending here? What else would you tell them besides managing and executing the work, which they are clearly doing? What would you tell them regarding stock market management if they believed they were still capable of investing in the business?

Uber's performance seems a bit weak today, Landon. Uber is one of the companies that has recently come under scrutiny with the rise of self-driving taxis, Waymo, and others.

I mean, demand has risen by about 11 percentage points year-on-year, which is certainly strong. We know that their bookings increased by 22% in the last quarter. They have 208 million monthly active users . Therefore, they perform their job excellently.

We've got some interesting news for Uber stock investors as the CEO Dara Khosrowshahi announced what he'll be doing with the funds from the cost savings the company has initiated and the lower insurance prices the company is paying.

I think this is really important for Uber stock investors to consider.