Uber Technologies Inc UBER shares are outperforming the rest of the stocks in the S&P 500 in August after jumping on earnings at the beginning of the month. The recent strength in the rideshare name led one investor to up his position on Tuesday.
What Happened: Ritholtz Wealth Management CEO Josh Brown bought Uber shares this week after seeing signs that the stock has found its footing.
"The stock has given nothing back since reporting on August 2nd," Brown said Tuesday on CNBC's "Fast Money Halftime Report." "And the reason why is that Uber put up almost $400 million in positive free cash flow."
This is the first time that Uber has reported a positive free cash flow number, Brown noted. He's also starting to see some strength from a technical perspective.
"Uber is one of the small handful of companies that had been lumped in with this like innovation basket of loss producing profitless growth companies ... that did not make a new low or dip below the pandemic low in the recent selloff over the summer," Brown said.
What's Next: Brown expects Uber's mobility business to drive the stock higher moving forward.
"The mobility business is the key to the whole thing. So the delivery, Uber Eats, it got them through the pandemic. Now that we've reopened, that [mobility] business is explosive," Brown said.
122 million people utilized Uber for mobility purposes in the most recent quarter, Brown said: "That will only grow as time goes on, and now this company is getting toward profitability a lot faster than a lot of people thought they could."
Brown told CNBC that no one is really paying much attention to Uber, yet he believes the stock has put in a bottom.
"Holding that post-pandemic low this summer when so many other names in this category haven't been able to, I think is screaming, and I've taken notice of it," he said.
UBER Price Action: Uber has a 52-week high of $45.90 and a 52-week low of $19.89.
The stock was down 1.29% at $28.38 at press time, according to Benzinga Pro.
Photo: courtesy of Uber.
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