We recently compiled a list of the Jim Cramer Talked About These 8 Stocks. In this article, we are going to take a look at where Uber Technologies, Inc. (NYSE:UBER) stands against the other stocks Jim Cramer talked about.
Jim Cramer, host of Mad Money, recently shared some investment wisdom drawn from his four decades of experience. One of the key lessons he emphasized during the show was the importance of discipline in investing. Cramer was firm on this principle, saying that no matter how much someone may love a stock or be captivated by its story, if the rules dictate that it’s time to sell, then it’s time to sell. He reminded his audience that discipline is more important than sheer conviction when it comes to managing investments.
“We’re gonna start with the first one, which is bulls make money. Bears make money. Pigs, well, they get slaughtered. Look, I say this all the time… because so often in my business, I’ve seen moments where stocks went up and up and up so much that people were intoxicated with their gains… However, it’s precisely at that point of intoxication that you need to remind yourself that you don’t want to act like a pig.”
READ ALSO Jim Cramer’s Latest Lightning Round: 8 Stocks in Focus and Jim Cramer Discussed These 11 Restaurants and Retail Stocks
Cramer also stressed that one of the toughest aspects of investing is simply enduring the ups and downs of the market.
“You know that’s the hardest part of investing. It’s holding on through the difficult periods, taking short-term pains so you can have long-term gains, which is what’s happened in the stock market for a century.”
The next rule Cramer shared revolves around the fear of paying taxes on stock market gains. He pointed out that many investors develop a near-obsessive aversion to paying taxes and often avoid taking profits because they don’t want to incur tax liabilities. However, Cramer argued that it’s perfectly okay to pay taxes if it means securing gains.
Lastly, Cramer advised against buying or selling a stock all at once. He recommended spreading purchases over time in stages, as this approach accounts for the potential fallibility of judgment and helps secure the best price.
“… My next commandment and this is a really important one. Never buy all at once. I can’t stress it enough. Do not, under any circumstances, buy your whole position at once… and you should never sell all at once. Instead, I need you to stage your buys, work your orders, try to get the best price over time.”
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episodes of Mad Money. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close up view of a hand holding a smartphone, using a ride sharing app.
Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 136
A caller noted that Uber Technologies, Inc. (NYSE:UBER) has been down and Cramer said:
“It is discouraging and I find that Uber, I personally think that a lot of it’s the chart, it looks like a terrible chart… People right now have decided that these companies are gonna get hurt by ride-sharing. I don’t believe that. I think that Uber’s attractive and it’s come down a lot and I do like it.”
Uber (NYSE:UBER) is a global leader in technology-driven mobility, delivery, and freight services, providing consumers with access to a range of transportation options and facilitating deliveries from various retailers. Despite facing recent challenges, including a pullback in stock value due to cautious near-term guidance and an ongoing Federal Trade Commission investigation into its Uber One subscription service, the company continues to see significant opportunities for growth.
The company has seen stronger growth in less dense areas, such as the suburbs and secondary cities, compared to core urban centers, particularly in Mobility and Delivery. The company started focusing on these areas with Delivery, where non-core cities make up the majority of the market and are growing faster than city centers. Management highlighted that this strategy is now expanding globally, and Uber sees significant growth potential in these less dense areas, which could drive growth for the core business in the next few years.
Additionally, Uber (NYSE:UBER) is working to increase user frequency, particularly through its Uber One membership program. As of the third quarter, over 25 million people have subscribed to Uber One, a 70% increase year on year. Members of the service also show significantly higher retention rates and tend to spend three times more than non-members.
More than 7.8 million people, including drivers, delivery workers, and shoppers, actively engage with its platform, further solidifying the company’s position as a key player in the transportation and logistics sectors.
Overall UBER ranks 1st on our list of the stocks Jim Cramer recently talked about. While we acknowledge the potential of 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 more promising than UBER but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.