Billionaires Back Lam Research and Uber as Smart Investments

Smart Investors Back Growth Stocks. Billionaires are increasingly investing in Lam Research and Uber Technologies, signaling potential growth opportunities for investors in 2025 and beyond.

Date: 26-02-2025

AI Rating: 7

Earnings Per Share (EPS)
Lam Research has impressive earnings per share growth at a 23% rate over the last 10 years, which shows strong profitability and potential for future returns. For Uber Technologies, the net income has surged to $9.8 billion with a profit margin of 22% last year, indicating significant improvement in profitability.

Revenue Growth
Lam Research has seen a revenue increase of 16% year over year for the December-ending quarter. Its compound annual revenue growth stands at 12% over the last 10 years. Meanwhile, Uber reported a 20% year-over-year revenue growth in Q4, indicating a strong upward trajectory in its business model.

Net Income
Uber Technologies recently reported net income of $9.8 billion, which is a considerable turnaround from earlier financial struggles. This significant profit achievement showcases the potential for continued financial strength.

Profit Margins
Uber's profit margin of 22% highlights its capability to generate high returns on its revenue, making it an attractive option for investors. Additionally, Lam Research competes effectively with a strong return on capital employed of 35%, suggesting a competitive advantage.

Future Growth
Both companies are poised for growth; Lam Research is expected to benefit from the increasing investment in AI technologies driving demand for chips, while Uber's expanding service offerings, including autonomous driving, provide solid long-term growth prospects. The overall market for ride-hailing is forecasted to grow significantly, potentially supporting multiple service offerings.

Stocks: LRCX UBER