UBER is undervalued with 62% upside in 12-18 months; driverless tech risks are overblown due to strategic partnerships and investments.

Uber is the next top stock I'll recommend here with a fair value estimate at $123, a current market price of $76. Given that difference between market price and fair value, I calculated an upside of 62% for Uber stock over the next 12 to 18 months.

Couple of things I'm most excited about is this is a scaled asset light platform business model. Uber doesn't own any of the cars on the platform right now. It just brings together drivers and customers and it takes a fee from every transaction on that platform.

This is a great customer value proposition. At least in most parts of the world, the cost of car ownership has become so so expensive that when you compare it with taking ride share and using ride share services, it's become a more attractive situation for a lot of folks around the world.

The risk here is also huge with Uber and the risk comes from driverless car technology. The potential outcomes as a result of driverless car technology are so wide, it creates an increasing risk factor.

For instance, if Tesla is successful in its full solution for driverless car technology going direct to consumer, skipping Uber altogether, that could be a significant negative for Uber in the long term.

However, I think Uber will manage to boast meaningful market share even within the driverless car technology segment. It's already forming several partnerships. It's investing in its own technology.

It's investing in purchasing its own driverless vehicles, partnering with Lucid and Neuro and Rivian and others.

So, I think the risks are overblown here and the risks are creating this opportunity to buy a great business at a significant discount. I own Uber stock in my portfolio and I'm interested in adding more.