Why Josh Brown Says Uber Could Be 'One Of The Best Performers' Among Large-Cap Tech Stocks

Uber Technologies UBER is trading higher Tuesday after the company announced it narrowed its third-quarter gross bookings guidance and said it expects to deliver sequential adjusted EBITDA improvement in the fourth quarter.

What Happened: Uber said it expects third-quarter gross bookings to be in a range of $22.8 billion and $23.2 billion. The company expects adjusted EBITDA to be in a range between zero and $100 million for the fourth quarter. 

“With positive Adjusted EBITDA in July and August, we believe Uber is now tracking towards Adjusted EBITDA breakeven in Q3, well ahead of our prior guidance,” said Nelson Chai, CFO of Uber.

“We expect to deliver sequential Adjusted EBITDA improvement in Q4, even as we continue to invest in our growth initiatives.”

Related Link: Why Are Uber Shares Trading Higher Today?

Josh Brown's Take On Uber: Uber is trading at the same level it was trading at before the COVID-19 pandemic. That doesn't make any sense considering the "massive strides" the company has made since that time, Ritholtz Wealth Management CEO Josh Brown said Tuesday on CNBC's "Fast Money Halftime Report."

Uber's delivery business is now larger than its rides business and the rides business is "rebounding miraculously," Brown said.

Brown told CNBC he added "a meaningful amount" to his Uber position at the open Tuesday.

"This is basically a stock that I think should be closer to $50 than $40 even in the condition that the world is in now. And as the world improves and fully recovers I really think that this could be one of the best performers among all of the large cap tech names."

UBER Price Action: Uber has traded as high as $64.05 and as low as $32.89 over a 52-week period.

The stock was up 11.49% at $44.36 at the close Tuesday.