Monthly Archives: August 2024

MWG Focus Stock: Uber

 

Uber and the Age of Autonomy

Written by Head of Research & Portfolio Manager, Jamie Murray, CFA.

We recently increased our investment in Uber to 3% in our Global Equity Growth Fund. On the surface, Uber looks expensive, trading at 75 times the US$0.96 in earnings per share the company generated in the past 12 months. However, we believe Uber is at the inflection point where its global scale, dominant market position and utility-like demand could create a half trillion-dollar company in a decade (from $150B market cap today). Figure 1 (below) highlights Uber’s projected free cash flow growth, per Morgan Stanley estimates. After several money losing years, the company has crossed the profitability threshold and appears to have a sustainable business model to build on this early success. Its long-term success rests in maintaining its leadership in public mobility as its markets mature and autonomous vehicle technology develops further.

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July Portfolio Update | 2024

 

Thoughts on the Market: July Edition

Written by Head of Research, Jamie Murray, CFA

The Global Recession Probably Isn’t Here Yet

The S&P 500 closed near its all-time high set midway through the month-to-end July trading just as many Canadians were heading to their cottages for the Civic Holiday. The first week of August was then quite a whirlwind. To kick off the month, global markets had their worst 3-day run since 2022. The Japanese market alone closed down 12% on Monday, August 5th.  Panic appeared to be taking hold before the modest rebound that followed.

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