UBER: Reasons to Hold Through Volatility

UBER: Reasons to Hold Through Volatility by Amber Lancaster

There are three things we look for in stocks:

  1. Growth.
  2. Growth.
  3. Growth!

That was growth, not stock price.

And I’ll show you why.

Innovation drives growth and is fueling the Fourth Industrial Revolution. A shift into America 2.0 won’t happen overnight.

And volatility is a normal path of the markets. Stocks are always going to rise and fall — never in a straight line.

That’s why we recommend holding Strong Hands with your growth stocks for a minimum of three to five years.

Today, I want to tell you about an America 2.0 stock that has had its fair share of volatility (dipping 40% from its recent 52-week high), but when you take a look behind the scenes, there is growth.

Uber Technologies Inc. (NYSE: UBER).

You might remember UBER is part of Paul’s BUZZ trade. It also holds a spot in our Profits Unlimited portfolio, up 72% since he recommended it to subscribers in March 2020.

Right now, technology and innovation are driving growth into Uber, which could eventually push the stock higher…

Uber and the Ghost Kitchen Market — Don’t Miss Out Because of Volatility

Last year a record 47.4 million U.S. workers voluntarily left their jobs for better prospects in what is known as the “Great Resignation.”

It opened the floodgates for people with a strong entrepreneurial spirit to start their own small businesses.

Small businesses — over 30 million strong and accounting for 99.7% of all U.S. businesses — are the backbone of the U.S. economy.

And now, more than any other time in recent modern history, an America 2.0 innovative small business opportunity presents itself.

It’s called ghost kitchens.

Ghost kitchens, also known as cloud kitchens, dark kitchens or virtual kitchens, are restaurants without a dine-in option.

All food orders are made online and submitted via smartphone apps.

ordering food online from ghost kitchens

Before ghost kitchens, a person seeking to open a restaurant would take the traditional route of acquiring a brick-and-mortar facility.

This takes large amounts of capital and tons of red tape.

However, ghost kitchens which still have a physical commercial kitchen staffed by chefs, support staff and delivery personnel, are only missing the busy dining rooms full of hungry customers.

All the meal preparation, packaging and delivery of food to nearby customers happens in the ghost kitchen.

So as you can imagine, food delivery apps — like Uber Eats — have been a key player in this food revolution.

Uber Eats is an online food ordering and delivery platform launched by Uber Technologies in 2014.

It’s another example of how Uber is growing.

Real Growth = Real Stock Potential — Stay In

The popularity of ghost kitchens is on a tear.

The grocery chain Kroger announced earlier this month, the opening of its largest in-store ghost kitchen.

“… that serves meals from 10 different restaurants for pickup or delivery. Customers can order meals from multiple restaurant brands and have everything delivered together for one delivery fee.”

Even one of the fastest growing social networks, TikTok is in on this trend!

Per Bloomberg’s reporting TikTok is partnering with Virtual Dining Concepts to launch TikTok Kitchens.

TikTok and Virtual Dining Concepts will reportedly open around 300 locations across the U.S. with plans to expand up to 1,000 locations by the end of 2022.

The market size for ghost kitchens worldwide is projected to reach $139.4 billion by 2028:

projected global ghost kitchen market size

Food delivery apps are helping this America 2.0 concept thrive.

It allows customers to easily and quickly order food with a few taps of their smartphone.

Paul recommended Uber for its autonomous technology.

Think food delivery with no driver! Now, that’s what it means to look future forward.

Worldwide, Uber Eats’ annual revenue totaled $600 million in 2017 and now tops $4.8 billion as of 2020:

uber eats revenue from 2017 to 2020

 

So, as you see, UBER’s volatility will just be a blip on the radar as the future unfolds.

The growth and innovation are still happening. The company doesn’t stop moving forward just because its stock price is down. That would be some work schedule.

If you’re invested in Uber Technologies Inc. (NYSE: UBER), hold with Strong Hands.

You can even use this time to follow the Rules of the Investing Game to up your exposure.

If Uber is not for you, use this as a lesson for the next stocks you buy. Invest for growth.

Investing takes guts and tenacity. It’s not easy. And it makes you earn those big rewards. As Paul says:

Paul Mampilly BOP investing approach

(Click here to follow Paul on Twitter for more investing insights.)

You can be an early investor during this exciting transformation of restaurants as we know them.

Ghost kitchens are revolutionary and set to add revenue dollars to food delivery apps.

Make sure you’re in!

Until next time,

Amber Lancaster

Amber Lancaster
Director of Investment Research, Banyan Hill Publishing

P.S. Uber is part of our America 2.0 portfolio. We believe in these stocks for the future. And as for the volatility, well, we address that too in our weekly updates:

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