Welcome to “Stock of the Week”, a recurring series focused on companies experiencing meaningful news flow or changes in their investment case. The objective is not to react to headlines but to understand what is happening beneath the surface and whether recent developments materially affect the long-term investment thesis.
Each article applies the Quality Stocks Investment Framework to assess business quality, return potential and execution, in order to determine whether the stock is Attractive, Conditional, or Unattractive at the current price. A standardized one-pager accompanies each edition to make the decision process clear and easy to follow.
For paid subscribers, Stock of the Week goes a step further by opening up the full reasoning behind the investment thesis and decision process:
Detailed TSR calculations, including all underlying assumptions. This allows investors to understand what must go right for the investment to deliver acceptable returns and to stress-test their own expectations against explicit inputs
My analysis beyond the overall verdict. This provides a deeper insight, enabling investors to form an independent view rather than relying solely on a conclusion
This week’s spotlight is on Uber. While the Pelosis’ latest long-dated position provides a compelling headline hook, the broader market sentiment surrounding Uber remains deeply fragmented. Bears point to a near-term margin squeeze as localized competitive promotional spending ticks up, threatening to mask otherwise robust top-line growth. Concurrently, an irrational panic over the rise of autonomous robotaxis continues to weigh heavily on the stock’s multiple. Yet, this narrative fundamentally misunderstands the structural architecture of the business. As we have emphasized repeatedly: Uber is an aggregator platform, not a taxi company. It is a hyper-scalable, multi-sided marketplace that owns the global demand layer. By focusing on short-term margin noise and localized hardware headlines, the market is completely missing the underlying network effects and free cash flow generation that define a true structural compounder.
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One Pager
The stock at a glance
Want to understand how the Quality Stocks Investment Framework works? This article breaks it down for you
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Recent news
Uber announced plans to launch autonomous ride services across 15 global markets by the end of the year, expanding its existing driverless footprint into major cities like London, Zurich, Madrid and Hong Kong
The company is accelerating its asset-light autonomous vehicle strategy through a series of key partnerships, including co-developing a new robotaxi with Lucid and Nuro for a California launch and teaming up with Chinese AV firm WeRide to deploy commercial fleets in Europe
A recent filing revealed that Nancy Pelosi’s husband established a new bullish position in the company by purchasing 200 long-dated call options with a $50 strike price expiring on March 2027, representing an estimated transaction value between $500,001 and $1,000,000
Uber Eats is aggressively scaling its delivery marketplace beyond traditional restaurant meals by launching nationwide partnerships with major retail brands including FedEx Office, Kiehl’s and Academy Sports + Outdoors
The company initiated a major European expansion for its food delivery division, aiming to generate an additional $1B in total bookings over the next 3 years by entering seven new competitive markets, including Austria, Denmark, Finland and Norway
Financially, Uber showed immense operational growth in its latest Q1 report with gross bookings hitting $53.72B and its Uber One membership eclipsing the 50M member milestone, though GAAP net income suffered a paper drag from a $1.5B pre-tax equity investment revaluation
Uber and Alphabet’s Waymo officially ended their three-year robotaxi partnership in Phoenix after their pilot program reached its contracted end date, quietly removing all Waymo vehicles from the Uber app and folding them back into Waymo’s independent fleet
Recent analyst recommendation updates
June, 12. Tigress Financial. Buy. $110 —> $115
June, 05. Arete. Buy. $120 —> $119
May, 28. MoffettNathanson. Buy. $95 —> $92
To go beyond the initial assessment, paid subscribers unlock the detailed TSR calculation with underlying assumptions and my analysis of the situation, providing deeper insight into how recent developments affect risks, opportunities and the overall verdict
