Billionaire Chase Coleman Sold 94% of His Fund’s Stake in Uber and Is Loading Up on a Skyrocketing Stock Whose Addressable Market Can 11X by 2032

Some investors consider earnings season as the peak time for releasing a flood of financial information on Wall Street. During this approximately six-week span every quarter, major and impactful companies disclose details about their earnings and business operations.

Indeed, there’s a compelling case that the quarterly submission of Form 13Fs to the Securities and Exchange Commission offers equally significant insights for investors. Essentially, this form is a mandatory disclosure by institutional investors who oversee $100 million or more in investments.

13F filings are highly valued because they offer insights into the stocks, market segments, and investment trends that attract the astute financial minds on Wall Street.

Although Warren Buffett is often the investment guru most people follow, it’s important to remember that he isn’t the only billionaire capable of generating substantial returns or finding promising opportunities. Tiger Global Management’s billionaire leader, Chase Coleman, for instance, has a reputation for favoring small and large growth stocks, as well as seeking companies that can capitalize on upcoming trends in the financial market.

In the recently concluded March quarter, I enthusiastically approved the sale of a significant portion of my fund’s shares in the gigantic ride-sharing company, Uber Technologies (UBER). Instead, I’ve decided to dive headfirst into a tech stock that’s soaring high, with its potential market expanding exponentially in the next big investment wave – no, it’s not artificial intelligence (AI) this time. In fact, by 2032, it could see a staggering 11X growth!

Billionaire Chase Coleman slams the door on Uber

In the first quarter, Tiger Global Management’s billionaire head significantly reduced or divested his fund’s holdings in 11 companies. However, it was the sale of 2,446,700 Uber Technologies shares, amounting to a 94% decrease from their year-end 2024 position, that raised eyebrows most notably.

The main motive behind this selling action is straightforward: making a profit. In today’s context, not many money managers opt for long-term investments. However, Tiger Global tends to hold onto their investments for an average of about 2 years and 8 months. Given that Coleman’s fund owned more than 5 million Uber shares during the third quarter of 2023, and since then Uber stock has nearly doubled, it seems prudent to cash in on these gains.

It’s possible that Chase Coleman’s stock sales from Uber may involve more than just routine profit-making.

The main threat that Uber faces in the ride-sharing industry might stem from increasing competition. Following David Risher’s appointment as CEO of Lyft (LYFT) in April 2023, he has focused on reducing excessive expenses and transforming his company into a substantial cash producer instead of a cash-burner. Now that Lyft is consistently profitable and generating large amounts of operational cash flow, it has a real chance to challenge Uber’s dominant market position.

Speaking further on the subject of competitive pressures, it’s plausible that Coleman foresaw potential competition from autonomous taxi services like Waymo and Tesla. Waymo is swiftly expanding its autonomous ride-hailing service across Los Angeles and San Francisco, while Tesla has recently launched a trial run of its robotaxis in selected areas of Austin, Texas.

Uber Technologies’ current valuation might give one pause, given it started the year 2023 at less than twice its sales. As of July 20, however, Uber’s valuation has ballooned to nearly 4.3 times its sales. While Uber’s price-to-sales (P/S) ratio is still below its 2021 peak, it’s approximately four times greater than Lyft, its main competitor. The concern here is that Lyft seems like a more attractive investment compared to Uber, despite Uber offering multiple sales channels such as Uber Eats and its logistics network for diversification.

The reason Chase Coleman might have sold his Uber shares could be the possibility of a U.S. economic downturn occurring. Unlike other established companies, Uber hasn’t experienced a full-blown U.S. recession before, which introduces another layer of uncertainty that challenges its high market valuation.

This stock is up almost 1,000% in a decade, and Chase Coleman is gobbling up its shares

At the opposite extreme, a billionaire investor from Tiger Global Management acquired five fresh stocks during the initial quarter and boosted 14 existing holdings. While many of these purchases may have caught attention, the 896,700 shares of Microsoft (MSFT) that Coleman bought particularly stands out. This increased Tiger Global’s ownership in Microsoft by 17% since the end of 2024.

Many investors are heavily investing in Microsoft due to its strong connections with cloud computing and artificial intelligence. Azure, ranked as the second-largest cloud infrastructure service platform globally by spending according to Canalys estimates, has the potential to maintain a growth rate of at least 30% (and potentially more) by integrating generative AI solutions and enabling subscribers to construct and educate extensive language models.

However, there could be additional factors contributing to Coleman’s increased investment in Microsoft, and possibly explaining the significant rise (approaching 1,000%) in the company’s share price over the past ten years.

Beyond artificial intelligence, quantum computing is now stepping into the limelight as a rapidly evolving technology. It operates on unique computers that leverage quantum mechanics to tackle intricate mathematical problems which conventional computers find difficult or impossible. Quantum computing holds great promise for enhancing AI efficiency and also contributes significantly to drug research, among other advantages.

According to Fortune Business Insights, it’s projected that the worldwide market for quantum computing could surge by approximately 10 times its current size, from around $1.16 billion in 2024 to a potential $12.62 billion by 2032. It’s worth mentioning that predictions for the impact of quantum computing on the economy vary widely, with some experts suggesting it could reach nearly $1 trillion over the next decade. Microsoft is one of the companies leading the charge in this promising new field.

Microsoft has created a quantum processing unit called Majorana 1 and is merging it with an online computation system they call “Azure Quantum.” Although this project is in its initial stages, Microsoft’s innovations enable businesses to execute quantum algorithms and estimate the resources required for increasing quantum machines in the future. While Microsoft isn’t solely focused on quantum computing, it’s evident that they are leveraging the excitement surrounding this technology.

Another interesting aspect of Microsoft lies in its exceptional ability to produce cash flow and maintain a clean financial structure. Its longstanding Windows and Office divisions consistently generate substantial cash reserves which are then channeled towards emerging areas like cloud services, artificial intelligence, and quantum computing for faster growth.

In simple terms, Microsoft concluded its third quarter ending March with approximately $80 billion in liquid assets (cash, cash equivalents, and short-term investments), while it had generated about $93 billion in cash from daily operations during the first nine months of fiscal year 2025 (which ended on June 30). This financial might enables Microsoft to pursue daring, innovative projects that many other companies can’t undertake.

2025-07-24 10:52

Billionaire Chase Coleman slams the door on Uber

This stock is up almost 1,000% in a decade, and Chase Coleman is gobbling up its shares

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