Suncoast Equity Management, an SEC-registered Investment Advisory, disclosed the sale of its position in Uber Technologies, Inc. (NYSE: UBER) following the company's second-quarter results. The firm stated that the proceeds were used to increase its holding in ASML, a decision driven by Uber's third-quarter earnings guidance, which was described as modestly below expectations despite strong operational performance.
In its Q3 2026 investor letter for the U.S. Equity Large Cap Select Growth Strategy, Suncoast Equity Management detailed the rationale behind the exit. The strategy advanced 4.2% after fees in the third quarter, outperforming the S&P 500's 2.3% return. Although the portfolio lagged the S&P 500 over the four quarters ending June 30, 2026, the firm noted that the gap between portfolio earnings per share growth and returns is narrowing. Select Growth shares have risen 14.5% after fees since March, a trend the letter suggests may present an investment opportunity if severe macro conditions do not materialize.
The investor letter characterized Uber's second quarter as operationally solid, citing a 24% increase in gross bookings and a 33% rise in operating profits. However, the firm argued that on a relative basis, ASML is more attractive due to its near-term momentum and long-term competitive position as the exclusive supplier of advanced semiconductor wafer lithography equipment. Uber Technologies, Inc. (NYSE: UBER) is a multinational technology company providing ridesharing, food delivery, freight, and other services.
Market data shows that Uber Technologies, Inc. (NYSE: UBER) closed at $68.45 per share on October 7, 2026, with a market capitalization of $139.81 billion. Over the past month, the stock declined by 4.81%, while it lost 28.28% over the past 52 weeks. According to database records cited in the report, 151 hedge fund portfolios held Uber Technologies, Inc. (NYSE: UBER) at the end of the second quarter, a decrease from 153 portfolios in the previous quarter. The stock currently ranks 12th on a list of the 40 most popular stocks among hedge funds heading into 2026.
The report also references previous coverage highlighting bullish views on the stock from Nancy Pelosi and Bill Ackman. While acknowledging Uber's potential, Suncoast Equity Management indicated a preference for certain artificial intelligence stocks, which it believes offer greater upside potential and carry less downside risk. The firm directed readers to its Q3 2026 hedge fund investor letter page for additional insights from leading investors.