Business

Jim Kramer says now is the time to start a job at Uber

CNBC’s Jim Kramer said Monday that he has warmed up to Uber, suggesting that the investment case for the food and travel delivery company now contains more positives than negatives.

“You have my blessing to take a small position at Uber; you can buy more in case of weakness, if stocks roll back, if the Nasdaq also wants to test its low, ”said the Mad Money presenter.

“Just remember, I expect the investor meeting in a month’s time will be an important positive catalyst,” Kramer added, referring to an event that scheduled for 11:00 ET Feb 10.… This should happen one day after Uber releases its fourth quarter and full year financials.

Kramer acknowledged that Uber does not necessarily fit into his core theme of stock picking for 2022, which is investing in companies that make tangible goods and generate real profits. Nonetheless, he said he believes the loss-making Uber “is turning to profitability just in time,” given the likely interest rate hike by the Federal Reserve.

“I told you to avoid stocks that are multiples of sales, not profits, but Uber is now trading at just 3x the sales, which is the real deal if the business continues to pick up steam,” said Kramer, who sees strong tailwinds. for the Uber taxi business as people travel and enjoy themselves more after the Covid-related slowdown.

Uber Eats’ success during the pandemic also appears to be more sustained, Kramer said, citing declining competition in the app-based food delivery market.

“Uber is not a free dunk. You still have regulatory and omicron risk. If the omicron is delayed it could slow down ridesharing recovery, but I think we have reached a point where the positives are now outweighed. negatives, ”said Kramer.

Login Now for CNBC Investing Club to follow Jim Cramer’s every move in the market.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button