RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. During the fourth quarter, the markets continued its strong rally with the Russell 1000 Growth Index (RLG) and the S&P 500 index returning 7.1% and 2.4% respectively and RPX returning 5.11%. In 2024, the S&P 500 index and the RLG returned 25.0% and 33.4%, respectively. RPX returned 22.6%. The solid performance of the U.S. stock market in the fourth quarter of 2024 was supported by a rising investor sentiment and solid fundamentals. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, RiverPark Large Growth Fund emphasized stocks such as Uber Technologies, Inc. (NYSE:UBER). Uber Technologies, Inc. (NYSE:UBER) develops and operates proprietary technology applications that operates through Mobility, Delivery, and Freight segments. The one-month return of Uber Technologies, Inc. (NYSE:UBER) was -3.00%, and its shares lost 1.55% of their value over the last 52 weeks. On March 7, 2025, Uber Technologies, Inc. (NYSE:UBER) stock closed at $76.27 per share with a market capitalization of $159.329 billion.

RiverPark Large Growth Fund stated the following regarding Uber Technologies, Inc. (NYSE:UBER) in its Q4 2024 investor letter:

"Uber Technologies, Inc. (NYSE:UBER): Uber was our top detractor in the fourth quarter after reporting what we perceived to be a strong 3Q24. The company reported gross bookings of $40.9 billion were up 16% year-over-year (20% in constant currency). Mobility gross bookings of $21.0 billion grew 17% over last year (24% in constant currency) driven by a combination of product innovation and driver availability. Delivery gross bookings of $18.7 billion were up 16% from last year (17% in constant currency) and continued to be strong throughout the quarter. 4Q Adjusted EBITDA of $1.7 billion, up $598 million year-over-year, was better than management’s guidance of $1.6 billion, and the company generated $2.1 billion of free cash flow, up from $905 million last year. Management guided to continuing growth in 1Q Gross Bookings (18% growth) and Adjusted EBITDA (of $1.8 billion). Despite these strong operating metrics, the stock was pressured throughout the quarter by fears of autonomous cars (RoboTaxis) potentially taking ride share market share in the coming decade.

UBER remains the undisputed global leader in ride sharing, with a greater than 50% share in every major region in which it operates. The company is also a leader in food delivery, where it is number one or two in the more than 25 countries in which it operates. Moreover, after a history of losses, the company is now profitable, delivering expanding margins and substantial free cash flow. We view UBER as more than a ride sharing and food delivery service; we also see it as a global mobility platform with 161 million users (by comparison, Amazon Prime is thought to have 200 million members) and the ability to penetrate new markets of on-demand services, such as package and grocery delivery, travel, and hourly worker staffing. Given its $9 billion of unrestricted cash and $7.9 billion of investments, the company today has an enterprise value of $130 billion, indicating that UBER trades at 16x and 12x our estimates of 2025 and 2026 free cash flow respectively."

A close up view of a hand holding a smartphone, using a ride sharing app.

Uber Technologies, Inc. (NYSE:UBER) is in 10th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 166 hedge fund portfolios held Uber Technologies, Inc. (NYSE:UBER) at the end of the fourth quarter compared to 136 in the third quarter. While we acknowledge the potential of Uber Technologies, Inc. (NYSE:UBER) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Uber Technologies, Inc. (NYSE:UBER) and shared the list of good stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.