It's time now for the big three. Three stocks, three charts, and three trades. Rick Ducat will take us through the charts. And here to take us through the trades is Scott Bower, the CEO of Prosper Trading Academy.Great to have you both with us. Scott, I'd love to start with a big picture thought on this market action that we're seeing to start the week. As I'm checking the board, we are still entirely in the red.>> Yeah. And you know, you guys were just discussing all of the eco data coming out and there's ...

Core Insights - Uber's latest quarterly results exceeded expectations, with notable strength in delivery services, although margins raised some concerns [2][5] - The stock experienced a decline, attributed to broader market trends and potential profit-taking, despite solid performance [3][4] - The future growth potential of Uber is heavily tied to the development of robo-taxi services, which are still in the testing phase [5][6] Financial Performance - Uber reported a free cash flow of $8.5 billion, indicating a strong financial position and the ability to invest in future technologies [12][13] - The company has maintained profitability for three consecutive years, which is viewed positively by analysts [13] Market Reaction - The market's cautious sentiment led to a sell-off, with some analysts suggesting this presents a buying opportunity [9][10] - CEO Dara Khosrowshahi's comments on the profitability timeline for autonomous vehicles may have contributed to market hesitance [7][8] Loyalty Programs - Uber's loyalty programs are seen as effective in retaining customers and driving repeat business, especially after securing a partnership with Delta Airlines [15][17] - The loyalty initiatives are compared favorably to those of competitors like Lyft, enhancing customer engagement [16][17] Investment Outlook - Analysts recommend viewing the current dip in stock price as a buying opportunity, citing reasonable valuations and strong growth prospects [18]

Core Viewpoint - The U.S. Department of Justice has filed a lawsuit against Uber Technologies, accusing the company of violating the Americans with Disabilities Act by discriminating against passengers with disabilities, including those with service animals and mobility impairments [1][7]. Summary by Relevant Sections Allegations Against Uber - Uber drivers are accused of routinely refusing service to riders with disabilities, including those who travel with service animals or use stowable wheelchairs [1][7]. - The lawsuit claims that Uber and its drivers illegally charge cleaning fees for service animals and cancellation fees to riders denied service [1][7]. - Some drivers allegedly insult and demean individuals with disabilities and refuse reasonable requests, such as allowing mobility-impaired passengers to sit in the front seat [2][7]. Impact on Individuals - The discriminatory conduct of Uber has reportedly caused significant economic, emotional, and physical harm to individuals with disabilities [2][7]. - The complaint details the mistreatment of 17 individuals, including a 7-year-old amputee who was denied a ride home and a Gulf War veteran with a service dog who missed a flight due to being denied service [4][8]. Legal Actions and Company Response - The lawsuit seeks an injunction to prevent further violations of the Americans with Disabilities Act, as well as upgrades to Uber's practices and training, monetary damages, and a civil fine [5][8]. - Uber has publicly disagreed with the allegations, stating its commitment to expanding access and improving the experience for riders with disabilities, emphasizing a zero-tolerance policy for confirmed service denials [3][7]. Market Reaction - Following the news of the lawsuit, Uber shares experienced a slight increase of 0.7% in late afternoon trading [5].

Core Viewpoint - Uber Technologies has transitioned from a risky tech startup to a blue-chip quality stock, with robust capital returns and significant growth potential [1][2]. Business and Operational Quality - The board has authorized a $20 billion share repurchase program, representing approximately 10% of the market cap as of early August [2]. - Uber's share buybacks have resulted in a 1.1% reduction in share count year-over-year, expected to continue offsetting share-based compensation [2]. - The company is projected to achieve a 400% to 600% increase in stock price over the next decade, trading at 32 times its current earnings outlook [3]. Growth Trajectory - Earnings are forecasted to grow at a compound annual growth rate (CAGR) in the high-20% to high-30% range for at least the next ten years, potentially reaching 5 times earnings by 2035 [4]. - The company has reported an 18% increase in trips and gross bookings, alongside a 35% increase in adjusted EBITDA and adjusted earnings [9]. Analyst Sentiment - The consensus among 38 analysts is a high conviction Moderate Buy rating, with over 70% rating it as a Buy, indicating a 10% upside potential [7]. - Despite mixed Q2 results, the overall sentiment remains positive, with price target increases offsetting downgrades [6]. Financial Metrics - The Q2 results showed a bottom-line miss due to increased investments in business acquisition and growth, but the market did not view this as a major concern [9]. - Free cash flow for Q2 was reported at $2.5 billion, with a payout ratio near 50%, indicating sustainability in share buybacks [10]. - Institutional ownership exceeds 80%, providing a solid support base for the stock [11].