Your Portfolios in Brief
Uber Technologies, a major player in the mobility and delivery sectors, continues to capture attention from investors and analysts alike. Here’s why this stock deserves a close watch in 2025:
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Company Overview
Founded in 2009, Uber is a global company specializing in ride-sharing, food delivery (Uber Eats), and more recently, autonomous driving technology. It operates in over 70 countries and more than 15,000 cities worldwide. The company employs thousands and collaborates with over 4 million drivers and couriers.
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Key Developments in 2025
• Q1 2025 Results: Uber surprised markets with earnings of $0.83 per share (vs. $0.50 expected), though revenue came in slightly below expectations at $11.53 billion versus the $11.62 billion consensus. The stock dropped 2.5% following the report.
• Business Growth: Total trips increased by 18%; mobility bookings rose 13% to $21.18B, and delivery bookings grew 15% to $20.38B. Monthly active consumers reached 170 million, up 14% year over year.
• Autonomous Technology: Uber crossed a milestone with an annualized pace of 1.5 million autonomous rides, notably due to its partnership with Waymo (Alphabet) in Austin, where Waymo vehicles are now more active than 99% of human drivers.
• Major Investment from Bill Ackman: The billionaire announced a $2.3B position in Uber via his Pershing Square fund, citing exceptional management and robust growth.
• Strong Outlook: For Q2, Uber projects adjusted EBITDA between $2.02 and $2.12 billion and gross bookings between $45.75 and $47.25 billion.
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Why This Stock Is One to Watch
Uber continues to innovate in a rapidly evolving market. Its expansion into autonomous vehicles, strategic partnerships (Waymo, Volkswagen, Aurora, etc.), and large user base give it a decisive competitive edge. Despite occasional concerns—such as the FTC complaint over the Uber One service—the company remains on a strong growth path.
Uber is also becoming more operationally and financially efficient: it is now profitable, generates positive free cash flow, and uses excess liquidity to repurchase shares.
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What Analysts and Traders Are Saying
• Wall Street maintains a “moderate buy” rating with an average price target of $93.91, implying a +13% upside.
• Goldman Sachs and other major firms have added Uber to their high-conviction stock lists.
• Bill Ackman’s investment acts as a significant vote of confidence in the company’s long-term prospects.
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Conclusion
At Pratte Portfolio Management, we seized the opportunity to purchase Uber (UBER) following the post-earnings dip in May, which we viewed as a market overreaction to otherwise strong results—particularly earnings that far exceeded expectations.
Bill Ackman’s commitment, coupled with Uber’s growth momentum in mobility services, expansion in autonomous technologies, and financial discipline, confirms our outlook: Uber is not only a leader in the new economy but also a company well positioned for sustainable growth in the years ahead. We are confident this investment will contribute positively to the long-term performance of our portfolio.
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Markets in Brief
Monday
• Dow Jones: +0.08% (42,305.48 points)
• S&P 500:+0.41% (5,935.94 points)
• NASDAQ: +0.67% (19,242.61 points)
• TSX (Toronto): +0.82% (26,388.96 points)
On the currency market, the Canadian dollar traded at an average rate of 73.21 US cents, up from 72.98 US cents the previous day.
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Trade Tensions, but Resilient Markets
The New York Stock Exchange ended higher despite rising trade tensions between the U.S., China, and the European Union. Markets showed resilience, supported by stable economic data and the strength of major tech firms. Washington announced a doubling of tariffs on steel and aluminum, while Beijing accused the U.S. of failing to uphold a recently concluded trade agreement. Investors are watching for a possible exchange between Presidents Trump and Xi this week.
As expected, manufacturing activity declined for the third consecutive month in May to 48.5% (versus 48.7% previously). U.S. markets are awaiting several employment-related data releases this week, including Friday’s unemployment rate.
In the bond market, the yield on 10-year U.S. Treasury notes rose to 4.44%.
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Stocks in Brief
Top Gainers
• Blueprint Medicines (+26.50%): Acquisition announced by Sanofi in a $9.5 billion deal.
• BioNTech (+11.30%): Jumped after partnership with Bristol Myers Squibb on cancer treatment.
• Micron (+3.94%): Continued momentum from AI-related semiconductor demand.
• AMD (+3.55%): Gained on positive momentum around advanced technologies.
• Broadcom (+2.74%): Strength from AI sector and solid semiconductor results.
• Nvidia (+1.67%): Market continues to value growth potential in AI.
• Boeing (+2.00%): Rose after federal case dismissal related to the 2018–2019 crashes.
• Microsoft (+0.35%): Mega-cap stocks provided support in uncertain climate.
• Apple (+0.42%): Gained as large tech names serve as defensive plays.
Top Losers
• DraftKings (-5.50%): Pulled back after Illinois voted to increase taxes on sports betting.
• Flutter Entertainment (-4.30%): Also affected by new taxation on betting.
• Tesla (-3.00%): Sales declined in May across multiple European markets, excluding Norway.
• Omnicom Group (-4.00%): Weighed down by Meta’s push to automate advertising.
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Sector Performance
• Leading Sector: Information Technology – AI-linked stocks continued to rise, with notable gains for Nvidia, Broadcom, AMD, and Micron. Mega-cap names like Microsoft and Apple buoyed the indexes.
• Lagging Sector: Advertising & Communications – Meta’s AI-driven ad automation plan led to declines for Omnicom, WPP, and Interpublic.
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Tuesday
• Dow Jones: +0.51% (42,519.64 points)
• S&P 500:+0.58% (5,970.37 points)
• NASDAQ: +0.81% (19,398.96 points)
• TSX (Toronto): +0.14% (26,426.64 points)
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Nvidia Powers Wall Street, Hopes for Easing Tensions
Wall Street continued its upward trend Tuesday, buoyed by enthusiasm for tech stocks and early signs of resilience in the U.S. labour market. Despite the lack of confirmation of a call between Presidents Trump and Xi Jinping, investors remain hopeful for a trade agreement. A stronger-than-expected JOLTS report supported risk appetite.
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Stocks in Brief
Top Gainers
• Dollar General (+15.85%): Surged after beating quarterly earnings expectations and raising full-year guidance.
• Micron (+4.00%): Continued climb on AI-related semiconductor momentum.
• Broadcom (+3.20%): Rose ahead of earnings on optimism around the AI segment.
• Nvidia (+2.80%): Overtook Microsoft to become the world’s largest company by market cap, driven by AI leadership.
• BioNTech (+2.25%): Continued to rise on its immunotherapy partnership with Bristol Myers Squibb.
• Microsoft (+0.22%): Slight gain despite losing top market cap position.
Top Losers
• Bumble (-6.45%): Slumped after JPMorgan downgraded the stock, citing market share losses.
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Sector Performance
• Leading Sector: Information Technology – Driven by strong gains in AI and semiconductor names.
• Lagging Sector: Consumer Discretionary – Weighed down by Bumble’s sharp decline.
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Wednesday
• Dow Jones: -0.22% (42,427.74 points)
• S&P 500:+0.01% (5,970.81 points)
• NASDAQ: +0.32% (19,460.49 points)
• TSX (Toronto): +0.20% (21,150.00 points)
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Wall Street Ends Mixed
The New York Stock Exchange closed mixed, shaken by disappointing U.S. private-sector employment data. The ADP report showed only 37,000 jobs created in May, versus the 110,000 expected—the weakest figure since March 2023. This weakness revived hopes for monetary easing by the Fed.
• President Trump called on the Fed to cut rates immediately, criticizing its inaction.
• The Fed’s Beige Book stated the U.S. economy “slightly contracted,” with businesses expecting moderate growth.
• The 10-year Treasury yield fell to 4.35%, down from 4.45% the previous day.
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Stocks in Brief
Top Gainers
• Ford (+0.49%): U.S. sales surged over 16% in May thanks to expanded employee discounts for all customers, in response to auto import tariffs.
• NXP Semiconductors (+5.6%): Gained on news of major semiconductor investment in the U.S.
• ON Semiconductor (+6.1%): Rose as the market anticipates a rebound in chip demand.
Top Losers
• Dollar Tree (-8.37%): Warned that Q2 profits could drop 50%, due to tariff-related impacts.
• CrowdStrike (-5.77%): Issued revenue guidance below expectations.
• Exxon Mobil (-1.45%), Chevron (-1.54%), ConocoPhillips (-2.23%): Energy names fell on declining oil prices.
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Sector Performance
• Leading Sector: Technology – Rate cut prospects and chip investment news boosted the sector.
• Lagging Sector: Energy – Lower oil prices significantly hurt U.S. energy stocks.
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Bank of Canada Holds Key Rate at 2.75% Amid Trade Uncertainty
The Bank of Canada opted to keep its key interest rate unchanged at 2.75% for the second consecutive meeting, adopting a wait-and-see approach amid rising global uncertainty.
This decision reflects a cautious stance in an unstable economic environment, based on two key factors:
• A slowing yet resilient economy: Q1 GDP grew by 2.2%, driven by exports to the U.S.
• Persistent core inflation: Still above 3%, despite overall inflation falling to 1.7%, thanks to lower energy prices.
Governor Tiff Macklem cited “exceptional uncertainty,” particularly regarding the trade war with the U.S. The impact of U.S. tariffs—especially on steel and aluminum, where Canada is a key supplier—could weigh heavily on the Canadian economy in H2.
The central bank is balancing conflicting signals:
• On one hand, resilient Q1 GDP growth.
• On the other, rising unemployment (6.9%), slowing investment, a cooling housing market, and weaker consumer spending.
Given these dynamics, the BoC chose not to rush a rate cut, preserving monetary flexibility should conditions worsen. However, the bank indicated a rate cut could come as early as July if the economy continues to weaken and inflation pressures stay muted. To make that decision, the BoC is awaiting new data on employment and inflation, and further clarity on U.S. trade policy.
Markets and many analysts expect two to three rate cuts by year-end, which would bring the key rate closer to 2%.
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Thursday
• Dow Jones: -0.25% (42,319.74 points)
• S&P 500:-0.53% (5,939.30 points)
• NASDAQ: -0.83% (19,298.45 points)
• TSX (Toronto): +0.09% (22,067.57 points)
On the currency market, the Canadian dollar traded at an average rate of 73.39 US cents, down from 73.66 US cents the previous day.
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Wall Street Drops as Tesla Weighs on Sentiment
U.S. markets declined on Thursday following a sharp sell-off in Tesla shares, which plunged over 14% after former President Donald Trump publicly criticized CEO Elon Musk. Trump suggested cutting federal contracts and subsidies to Musk’s companies, prompting a fierce response from the billionaire on social media. The fallout erased Tesla’s trillion-dollar valuation and pressured tech stocks across the board.
Adding to the market’s uncertainty, news of a phone call between Trump and Chinese President Xi Jinping did little to reassure investors. Although both sides agreed to resume trade talks, no concrete progress was announced.
Economic data also painted a mixed picture: jobless claims rose more than expected to 247,000, while labour costs surged by 6.6% in Q1. Fed Governor Adriana Kugler warned of continued inflationary risks and signalled that interest rates may remain elevated for longer.
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Stocks in Brief
Top Gainers
• Circle Internet Group (+200%): Skyrocketed on its IPO debut, opening at $69.50 after pricing at $31 per share.
• MongoDB (+17.3%): Surged after posting strong quarterly earnings and raising its full-year outlook.
• Five Below (+8.1%): Outperformed expectations on both earnings and revenue; CFO announced departure.
• MP Materials (+6.15%): Jumped after Trump lifted restrictions under the Defense Production Act to boost U.S. rare earth output.
Top Losers
• Brown-Forman (-15.7%): Fell to a record single-day loss after disappointing earnings and revenue results.
• Tesla (-14.20%): Slumped following Trump’s threats to cut government support amid escalating personal tensions with Musk.
• Trump Media & Technology Group (-7.3%): Dropped amid the Musk-Trump spat, which affected the stock tied to the former president.
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Sector Performance
• Sector Gaining: Materials
The materials sector gained traction thanks to supportive government measures and a declining U.S. dollar, which provided a favourable environment for commodity-linked stocks.
• Sector Lagging: Technology
The tech sector pulled back sharply, led by Tesla’s collapse and investor caution around regulatory and political risk.
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Friday
• Dow Jones: +1.27% (42,856.71 points)
• S&P 500:+1.34% (6,019.71 points)
• NASDAQ: +1.62% (19,774.83 points)
• TSX (Toronto): +0.31% (26,508.16 points)
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Wall Street Hits Milestone on Strong Jobs Data
U.S. markets soared Friday after the release of May’s nonfarm payrolls, which rose by 139,000, beating the Dow Jones estimate of 125,000. This solid reading helped ease fears of an imminent economic slowdown, even as it trailed the downwardly revised 147,000 from April. The unemployment rate remained at 4.2%, signalling continued labour market stability.
The S&P 500 briefly crossed the symbolic 6,000 mark, a first since February, while the Dow Jones surged over 500 points. Traders welcomed the data as a sign of resilience in the job market, particularly given the context of uncertain monetary policy and tariff negotiations.
Healthcare led the employment gains in May, adding over 78,000 jobs, followed by leisure and hospitality with 48,000. Manufacturing, however, shed 8,000 positions, highlighting the sector’s ongoing weakness.
Tech stocks bounced back strongly after Thursday pullback, with names like Tesla, Nvidia, and Apple all trading higher. According to Deepwater’s Gene Munster, Thursday Tesla sell-off was an “overreaction,” and the stock rebounded sharply, rising more than 4% Friday morning.
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Stocks in Brief
Top Gainers
• Tesla (+4.30%): Rebounded after Thursday 14% plunge, as investors dismissed the Musk-Trump feud as noise.
• Circle Internet Group (+11.75%): Continued to rally following its explosive IPO debut earlier this week.
• Broadcom (+2.85%): Recovered despite reporting weaker-than-expected free cash flow.
• Nvidia (+2.60%), Meta (+2.20%), Apple (+1.90%): Major tech stocks gained on bullish sentiment.
Top Losers
• Lululemon (-21.00%): Plunged after slashing its Q2 and full-year earnings outlook, citing macro headwinds.
• DocuSign (-17.00%): Dropped following slower-than-expected billing growth in Q1.
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Sector Performance
• Leading Sector: Technology – Lifted by gains in Tesla, Nvidia, and Broadcom, the tech sector reclaimed its momentum as investors rotated back into AI and innovation leaders.
• Lagging Sector: Consumer Discretionary – Weighed down by the sharp sell-off in Lululemon and weak outlooks across retail.
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Weekly Wrap-Up
May proved to be a very favourable month for equity markets, supported by an easing of trade tensions and generally stable economic data. Our portfolios benefited from this constructive environment, particularly thanks to the strength of technology stocks and growing investor enthusiasm for innovative sectors.
June is also off to a strong start, as solid employment data released this week reassured markets about the health of the U.S. economy, with major indexes continuing their upward momentum. The S&P 500 and Dow Jones posted gains of around 2% and 1.5%, respectively, while the NASDAQ Composite rose by more than 2% over the week.
