Stock of the day: Uber

(AI video summary)

This video was created on 4 July 2025 for IG audiences by ausbiz.

NYSE code: UBER

Uber's strategic expansion fuels growth potential

Uber is highlighted as a compelling buy for the 2026 financial year (FY). Globally known for its mobility services, Uber also holds a strong position in the food delivery market through Uber Eats, ranking as the second-largest player in the United States (US) behind DoorDash,.

Uber's expansion into new services, such as grocery and courier delivery, enhances its growth potential. A significant portion of its revenue comes from outside North America, providing diversification. With the advantages of scale offering shorter wait times for users, Uber creates a competitive edge. Despite minimal debt, Uber generates considerable cash flow, making it an attractive investment.

The introduction of Uber One, a membership service, has boosted customer engagement. Members spend approximately 3.4 times more than non-members, positioning Uber well for growth over the next five years.

Hims & Hers Health redefines telehealth success

Hims & Hers Health, a leading telehealth company in the US, is another stock to consider for FY2026. The company is disrupting the traditional pharmaceutical sector, which is often seen as inefficient.

Hims & Hers has over two million subscribers receiving regular medications and compounded pharmacy products, demonstrating the stickiness of its services and rapid growth. With a market capitalisation of $10 billion, Hims is viewed as a 'zero to one' company poised to address inefficiencies in the US healthcare system.

Despite legal challenges over compounded alternatives to specific medications, Hims presents a possible long-term advantage as a platform business, offering traditional pharmaceutical companies access to a customer base they might not otherwise reach.