Uber Technologies Inc (NYSE: UBER) has recovered nearly 40% over the past four months but famed investor Jim Cramer is convinced the stock is not out of room to run just yet.
Earlier this month, the ride-hailing giant reported over a billion-dollar of loss for its third financial quarter.
That’s why buying Uber stock comes with a stipulation – you should be willing to hold it for the long term, that Mad Money host suggested on his show last night.
Uber is a stock you have to own for a while. It’s losing a lot of money, but it has excellent management and it’s going to be the last man standing and that’s why I like the Uber stock here.
For the year, this is a stock that’s still down more than 30% and, therefore, remains attractive as a recovery play.
Uber Technologies is committed to $5.0 billion of adjusted EBITDA in 2024. The mobility company is also a great pick for a recession since an economic downturn could see more people opt into driving for Uber – thereby helping with supply shortages.
Who’s also bullish on the Uber stock is Mark Mahaney – the Head of Internet Research at Evercore ISI. In a CNBC interview this morning, he said:
I like companies that at the beginning of COVID crisis had their cost structure slashed. So, as they come out of COVID and into a recession, they’re lean and mean. They don’t have the excess cost structure they need to cut.
The constructive view is in line with Wall Street at large that has a consensus “buy” rating on the Uber stock.
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