Merry Christmas!

As we wrap up the year and look ahead to the next, I want to give you something special – my #1 stock pick for 2025.

It’s a company you likely already know, but I believe it’s primed to have an outstanding year ahead.

Introducing: Uber Technologies (UBER)

Founded in 2009, Uber has revolutionized the way people move from point A to point B.

Over the years, the company has evolved into a global platform spanning mobility, food delivery, and freight logistics.

What excites me most about Uber, however, is something that could drive massive returns for years to come – autonomous vehicle (AV) technology.

We’re standing on the brink of a transportation revolution. The shift from human-driven cars to self-driving vehicles will redefine not just ride-hailing but mobility as we know it.

Here’s why I think Uber will be a major beneficiary…

Autonomous Vehicles = Lower Costs

The largest cost to Uber today? Drivers.

Human drivers typically account for around 70% of the fare you pay.

By adopting autonomous vehicles, Uber can slash its costs dramatically. Imagine a ride where the margins are higher, fares are cheaper for customers, and Uber still earns more profit per trip.

This is the reality that autonomous vehicles will soon bring.

Now, it’s important to note that Uber doesn’t create its own AV technology.

In 2020, Uber sold off its subsidiary that was developing in-house AV technology.

Instead, Uber’s strategy is to focus entirely on partnering with leading AV companies, letting it do what it does best – match riders with drivers.

Here are some of Uber’s notable partnerships in the AV space:

• Uber and Waymo are expanding their partnership to bring autonomous ridesharing services to Austin and Atlanta in early 2025.

• Uber recently invested in Wayve, a UK-based Embodied AI tech developer for autonomous driving.

• Uber has partnered with Abu Dhabi-based WeRide to launch self-driving taxis in the UAE starting in 2025.

• Uber has collaborated with Avride to introduce robotaxis and automated delivery robots in Austin, with plans to expand these services to Dallas and Jersey City next year.

• Uber Freight and Aurora Innovation announced a multi-year collaboration to integrate Aurora’s autonomous driving technology into the Uber Freight network through 2030.

• Uber and BYD have partnered to boost Uber’s EV fleet by 100,000 units in the coming years.

These partnerships leverage Uber’s strengths:

• 15 years of invaluable data to match riders and drivers quickly and efficiently.

• A trusted platform and app used by millions worldwide.

• A strong brand presence in major metropolitan areas.

• A flexible business model that integrates AV technologies from various manufacturers.

Why Buy Uber Now?

The last two months haven’t been kind to Uber’s stock price, which is now 30% off its October high.

This decline, while somewhat justified, feels overdone and panicky.

The two main reasons for Uber’s decline are:

1. Tesla’s Robotaxi Ambitions: In mid-October, Tesla announced plans to build battery-powered Cybercabs without steering wheels, brake pedals, or accelerator pedals—a direct challenge to Uber’s business model. Uber’s stock has been sliding ever since.

2. Waymo’s Miami Expansion: Waymo recently announced plans to expand to Miami through a partnership with Moove, an African mobility platform, instead of Uber. Investors fear that Waymo may favor Moove or other platforms in future expansions, leaving Uber out.

Investors seem to believe that autonomous vehicles will be a winner-take-all technology, with tens of millions of driverless Teslas and Waymos about to flood the streets overnight, leaving no role for Uber.

But this simply won’t be the case.

The AV space is crowded with major players, including nearly every major automaker and companies like Aurora Innovation, Mobileye, Zoox, Motional, and more.

Going further, both Tesla and Waymo are years away from scaling their services to a meaningful level.

Meanwhile, Uber continues to grow its revenue, earnings, ride volume, and partnerships – all while trading at a reasonable valuation.

Right now, investors are overly focused on short-term fears and overlooking Uber’s long-term potential.

A Bright Future Ahead

Autonomous vehicles aren’t just a possibility, they’re inevitable.

Uber is positioned to be a leader in this transformation by leveraging its partnerships, platform, and global reach.

As we celebrate the holiday season, I encourage you to consider adding Uber to your portfolio.

This is my gift to you.

Have a Merry Christmas and a prosperous new year!