Billionaires Are Piling Into an Artificial Intelligence (AI) Stock That Is Quickly Turning Into a Free Cash Flow Machine

Core Insights - Billionaire investors are closely monitored by retail investors for insights into stock movements and potential investment opportunities [1][2] - Uber Technologies has faced challenges since its IPO in 2019, including increased competition and regulatory hurdles, impacting profitability [3][4] - Under CEO Dara Khosrowshahi, Uber has streamlined operations, resulting in significant financial improvements, including a profit of $9.86 billion in 2024 and a free cash flow (FCF) increase to nearly $6.9 billion from $3.36 billion in 2023 [4][8] Financial Performance - Uber's FCF margin reached 15.7% in 2024, indicating effective management and the ability to reinvest in the business [4] - Total trips on the platform grew by 19% in 2024, showcasing operational growth [4] Autonomous Vehicle (AV) Opportunity - Uber sees a $1 trillion opportunity in the U.S. AV market, although significant challenges remain before commercialization [5][6] - The company is well-positioned to tackle these challenges, having established partnerships with AV companies like WayMo and WeRide [7] Investment Sentiment - Billionaire investors, including Bill Ackman and David Tepper, have shown strong interest in Uber, with Ackman describing the company as a "highly profitable and cash-generative growth machine" [4][10] - The stock is viewed as a bullish bet on the future of AVs, with a valuation of 24 times forward earnings, suggesting growth potential [9]