WEBVTT - Why Uber Is a Top Stock Pick for the Future

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<v Speaker 1>Why Uber, Well, there's a couple of reasons, and this

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<v Speaker 1>is how we break down from an analytical standpoint, Right,

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<v Speaker 1>it's technical analysis and then it's fundamental analysis.

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<v Speaker 2>Right.

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<v Speaker 1>Yeah, we're going to go into the fundamentals because we

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<v Speaker 1>want to see from a business standpoint, what separates them

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<v Speaker 1>and why are they a great opportunity.

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<v Speaker 2>So this is the call again, We're going to keep

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<v Speaker 2>reiterating it.

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<v Speaker 1>You can write that down, you can circle it, you

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<v Speaker 1>can go to your broken's account tomorrow and say, all right,

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<v Speaker 1>I'm going to put this on.

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<v Speaker 2>My watch list. Well, here's why I liked.

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<v Speaker 1>It, and I think a lot of people in EYL

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<v Speaker 1>you liked it as well. All right, So Uber is

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<v Speaker 1>finally profitable. We talked about this as a ride sharing

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<v Speaker 1>company when it initially ipoed in twenty one, but it

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<v Speaker 1>turned into something so much more and when it started

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<v Speaker 1>it wasn't profitable.

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<v Speaker 2>But it recently has been.

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<v Speaker 1>Right, So they've increased demand for ride sharing and delivery services.

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<v Speaker 2>Obviously, kuber Eats is a huge, huge revenue.

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<v Speaker 1>Generator for them, and they've done cost cost cutting measures potentially,

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<v Speaker 1>and they shipped their growth at all costs to a

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<v Speaker 1>sustainable profitability model, right.

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<v Speaker 2>They want to make sure that they're making money all

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<v Speaker 2>the time.

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<v Speaker 1>That was something that they were accumulating over the first

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<v Speaker 1>three years of business.

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<v Speaker 2>Obviously that didn't work for them. They had to make

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<v Speaker 2>some adjustments and they have.

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<v Speaker 1>They've done the next job, huge congrattator on the entire

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<v Speaker 1>team at Uber from making those adjustments.

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<v Speaker 2>All right.

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<v Speaker 1>So Uber's revenue has consistently grown, but the company also

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<v Speaker 1>implemented cost saving strategies, including job cuts and expanding advertising

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<v Speaker 1>on its platform. So they've done a nice job on that,

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<v Speaker 1>which wasn't always the case inside of the ubers apps,

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<v Speaker 1>but you've also seen them starting to advertise a little

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<v Speaker 1>bit more on linear television and also on streaming services

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<v Speaker 1>as well. So they're getting this thing right, They've adjusted

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<v Speaker 1>and the adjustment is paid off.

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<v Speaker 2>Why else do we like Uber? All two words? Autonomous vehicles? Yes,

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<v Speaker 2>that is right.

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<v Speaker 1>Autonomous driving will be a game changer, like it or not.

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<v Speaker 1>This is going to fundamentally transform the transportation economy, right,

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<v Speaker 1>this is going to disrupt everything. Now, when we talk

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<v Speaker 1>about Uber, we always think about hm. Who makes money

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<v Speaker 1>in business? And if you know business, you know it's

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<v Speaker 1>the middle man, right, And so we always use Amazon

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<v Speaker 1>as an example of Amazon doesn't make a product, but

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<v Speaker 1>what they do is make sure that products can make

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<v Speaker 1>it to you.

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<v Speaker 2>Right.

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<v Speaker 1>So you have the person that creates the product, you

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<v Speaker 1>have the person that needs the product, and you have

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<v Speaker 1>the middle person that delivers, picks ups and ships to you.

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<v Speaker 2>Right.

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<v Speaker 1>So that middle man is Amazon In this case, Uber

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<v Speaker 1>is just that right. Uber doesn't own a car, right,

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<v Speaker 1>Uber doesn't need the ride.

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<v Speaker 2>Right. They're not the person and they're not the vehicle.

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<v Speaker 1>They're not a automobi built company.

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<v Speaker 2>They are a service that provides ride sharing and services

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<v Speaker 2>to people to get to and from places.

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<v Speaker 1>And so when you think about that, they don't have

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<v Speaker 1>to make a vehicle, right, which is high costs and

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<v Speaker 1>the margins.

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<v Speaker 2>And we can tell from some of the.

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<v Speaker 1>Automotive industry companies that we know, right they're not making

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<v Speaker 1>as much as a positive as they like.

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<v Speaker 2>In fact, some of them, they're going to.

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<v Speaker 1>Be in for a rude awakening here in the future

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<v Speaker 1>when autonomous to scale.

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<v Speaker 2>But they have a role in.

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<v Speaker 1>This ecosystem where they are not just doing ride sharing,

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<v Speaker 1>they're actually creating a technological platform that more people are

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<v Speaker 1>going to be able to use. All right, So here

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<v Speaker 1>is the competitive mode. Why do we like Uber so much? Well,

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<v Speaker 1>a couple of things. Uber has already has a massive

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<v Speaker 1>global network of writers and infrastructure.

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<v Speaker 2>They built that out.

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<v Speaker 1>So if you think of the number two in the

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<v Speaker 1>space is probably Lyft, which is cool, but Lyft and

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<v Speaker 1>Uber are completely different in terms of business structure. In fact,

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<v Speaker 1>Uber is almost becoming synonymous with ride sharing services.

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<v Speaker 2>Right.

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<v Speaker 1>It's almost like when we think of adhesive bantages, we

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<v Speaker 1>think bandaid.

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<v Speaker 2>When we think of ride sharing, we think of Uber.

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<v Speaker 1>They already have right present day over two hundred million

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<v Speaker 1>monthly active users.

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<v Speaker 2>That's a lot. That's a lot, and that's only going

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<v Speaker 2>to grow.

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<v Speaker 1>When you talk about international opportunity, when you're talking about

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<v Speaker 1>business opportunity, and now when you talk it out about

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<v Speaker 1>potential autonomous driving. Right, Uber also has a vast amount

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<v Speaker 1>of real traffic routes, logistical algorithms, driver writer matching and

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<v Speaker 1>payment systems, a demand data and customer support. So they

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<v Speaker 1>have all the infrastructure ready for this monumental shift that

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<v Speaker 1>could potentially be happening in the automotive space. Now, why

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<v Speaker 1>does that make sense? Well, partnerships are important, right. If

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<v Speaker 1>they don't make vehicles, they need to align themselves with

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<v Speaker 1>companies that do.

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<v Speaker 2>And there is a company that does have autonomous vehicles

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<v Speaker 2>and their name is Weimo. That's right.

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<v Speaker 1>We talked about this a few weeks ago. Uber has

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<v Speaker 1>already partnered with Waymo. In fact, if you're in Austin, Texas,

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<v Speaker 1>if you're in Atlanta at Georgia, and we actually saw

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<v Speaker 1>this on the road in Atlanta. I think Shotty posted

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<v Speaker 1>it in one of his stories. There was autonomous vehicle

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<v Speaker 1>that was driving. But why does that make sense for Uber? Well,

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<v Speaker 1>like I said, if you look at their revenue model

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<v Speaker 1>and their expense sheet.

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<v Speaker 2>Right, the majority of their expenses goes.

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<v Speaker 1>Out to one key category in their business model, and

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<v Speaker 1>that is the driver.

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<v Speaker 2>Well, if I removed the driver from.

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<v Speaker 1>The balance sheet temporarily, right, if I remove it, hypothetically,

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<v Speaker 1>my revenue is going to go up because I no

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<v Speaker 1>longer have to pay for the driver.

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<v Speaker 2>I no longer have to pay for his insurance. Right.

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<v Speaker 1>And so now you start seeing ways of increasing revenue

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<v Speaker 1>by switching from a service that you had to a

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<v Speaker 1>service that is going to potentially disrupt the way of

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<v Speaker 1>the future for your space. And so Waymo's a key partnership.

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<v Speaker 1>Like I said, Atlanta has already implemented it, Texas, Austin,

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<v Speaker 1>Textas has it. New York is applying for application to

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<v Speaker 1>see how way Moore moves in its jurisdiction, and.

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<v Speaker 2>Philadelphia is next up.

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<v Speaker 1>And so when we take all these things into account,

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<v Speaker 1>you can see why two to three years out, I'm

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<v Speaker 1>looking at uber as something that has potential growth on

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<v Speaker 1>the upside, a lot of positives. Now we can talk

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<v Speaker 1>about Tesla. Yeah, Tesla mixed vehicles. So that's going to

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<v Speaker 1>be a cost expense in Tesla. Let's go back to

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<v Speaker 1>that last lot. Tesla doesn't have this last key piece

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<v Speaker 1>down here, right, They don't have the logistical algorithms, they

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<v Speaker 1>don't have driver a ready magic. Now there is a

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<v Speaker 1>button inside of the new Tesla model that can shift that.

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<v Speaker 2>But what Uber does have is trust. Right.

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<v Speaker 1>I used to talk about to my peers, and I'm saying, hey,

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<v Speaker 1>can you imagine the time when you were younger where

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<v Speaker 1>you would get in the car with a stranger and

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<v Speaker 1>you would tell them to take you somewhere and that

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<v Speaker 1>would be okay.

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<v Speaker 2>Your parents would trust that. And Uber has just gradually

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<v Speaker 2>done that for us. Right, We're liable to put our.

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<v Speaker 1>Young teens and sometimes our young school and children in

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<v Speaker 1>ubers to get to and from places. So they've built

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<v Speaker 1>up a trust. Tesla is going to have to It's

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<v Speaker 1>gonna take time for them to do that. The fastest

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<v Speaker 1>way for them to do that which potentially partner with

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<v Speaker 1>a company like Uber, such as what Raimo has done,

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<v Speaker 1>and that could be a game changer as well.

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<v Speaker 2>So Uber is something that we like.

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<v Speaker 3>An illegal alien from Guatemala charged with raping a child

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