Looking forward, executives described the runway as significant, noting the company is still under 10% of TV time in major markets and is “about 7% of the addressable market” in consumer and advertising spend.In response to a question about long-term internal goals that were previously reported, management emphasized that the company uses “long-term aspirations” internally, but said those goals were based on organic progress and “did not contemplate or assume any M&A.” Executives said they have seen “contin ...

I sold my shares, but I may have made a huge mistake.Shares of connected-TV (CTV) platform company Roku (ROKU 1.26%) dropped a discouraging 19% in 2024, drastically underperforming the 23% gain for the S&P 500. But I was hopeful about the company's prospects for 2025. On Dec. 22, 2024, I wrote an article saying that Roku stock could bounce back.Bounce back it did. Roku stock raced to a 46% gain in 2025, easily outpacing the market's gains. Granted, it's still down 78% from its all-time high all the way back ...

Core Viewpoint - Uber Technologies has successfully transitioned into a profitable global platform, generating consistent earnings and free cash flow, but for its stock to double, it requires a rerating driven by durable earnings growth rather than just revenue growth [1][2]. Group 1: Margin Expansion - Continued margin expansion is essential for Uber to double its stock value, with the market expecting steady mid-teens revenue growth while operating leverage is not fully priced in [3][4]. - The adjusted EBITDA margin has shown a gradual uptrend, and maintaining this trend is crucial for stock appreciation [4][6]. Group 2: Advertising as an Earnings Driver - Uber's advertising business is positioned as a significant driver for earnings acceleration, with higher incremental margins compared to rides or deliveries [7][8]. - For Uber's stock to double, advertising must evolve from a side business to a material contributor to earnings, requiring scale and discipline [9][10]. Group 3: Uber Eats and Investor Perception - Uber Eats influences investor valuation, and while it does not need to become a margin powerhouse, it must demonstrate margin expansion and increased engagement to shift from a valuation drag to a supporting asset [11][12]. - Removing structural discounts associated with Eats can significantly impact stock valuation, similar to adding a new growth engine [12]. Group 4: Execution Risks and Requirements - For Uber to achieve its stock doubling potential, all three factors—margin expansion, advertising scaling, and Eats stabilization—must work in concert [12][13]. - The company must maintain contribution-profit positivity at scale, ensure new category expansions do not erode unit economics, and reinforce higher-margin businesses [12][14].