Uber’s stock price has soared 27%, but Timothy Chubb of Gillard Consulting Services believes there is more room for ride-sharing stocks to rise. The company’s chief investment officer joined CNBC’s “Electric Lunch” on Wednesday, sharing his views on the name, and a pair of other market enablers. That’s what he has to say. Despite its best performance at the beginning of the year, it was a time of volatility for Uber stock. Last month, the company lost nearly 8% of its shares in a day after it received over-expected total bookings in the first quarter. Uber also missed analyst earnings expectations, despite its revenue rate of one quarter. Still, Chubb emphasizes that Uber is one of his highest beliefs. “I think Uber is a perfect example, with the fundamentals of the core business performing very well,” he said. “I think the market is still not enough to get them to do more activities with users on the platform compared to Lyft, such as how much their free cash flow is generated.” On Tuesday, Uber started offering Robotaxi rides in Austin, Texas through a partnership with Waymo. The two companies plan to launch in several other cities this year. Chubb added that at some point next year or so, Uber’s stock could “of course” trade over $100. If the stock crosses that threshold, it would be Uber’s 31% gain at the end of Wednesday. CrowdStrike, on the other hand, emphasizes the cybersecurity company CrowdStrike as a pass. The stock fell 6.3% on Wednesday after it released a disappointing revenue forecast. The company said it expects its full-year earnings (excluding certain items) to be between $3.33 and $3.45 per share. This is not expected by analysts from the LSEG survey. CrowdStrike’s first-quarter earnings are expected to be between 64 cents and 66 cents per share, below the 95 cent average estimate. In July last year, crowdsourcing updates caused major IT outages, hurting businesses including airlines and banks. Since hitting a 52-week low of $200.81 last August, CrowdStrike’s stock has recovered more than 80%, up nearly 7% so far this year. “It’s an excellent business, related to this subscription model, but in reality, people aren’t as attractive to valuations,” Chubb said. Instead, investors prefer CrowdStrike rival Fortinet. “They are a more comprehensive platform, not only endpoint testing, but I think it will ultimately benefit from seeing businesses shift spending here because (they) may simplify things further,” he added. Finally, Chubu exudes a strong bearishness on Citigroup. The stock ended slightly higher on Wednesday but fell nearly 9% this week. Along with other bank stocks, Citigroup has been dragged down by tariff uncertainty and concerns about a slowdown. Chubb said deregulation under the Trump administration could provide banks with a “quite strong headwind.” However, Citigroup still has “a lot of problems” to improve its business efficiency. “Overall, we are more attractive to some other areas in finance, especially those who continue to decline as valuations, especially those who will be more affected by M&A activity,” the investor said.
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