Mark Cuban is among the most popular billionaires out there (particularly among Democrat-leaning voters), and has become a rather divisive name in the world of investing for his highly political takes in support of Kamala Harris. Given that we’re now just a couple weeks away from the election, this reality (in which Cuban has often faced off with the likes of Musk and other billionaires supporting Trump) has meant that most of the oxygen in the room surrounding Cuban has been snuffed out by this rhetoric.
However, many investors may be intrigued by Mark Cuban’s rise to success. His early-stage investments in a number of tech companies in the dot-com bubble (which were sold at darn near the top of the market) allowed Cuban to pocket billions of dollars. His video portal Broadcast was sold to Yahoo in 1999 for $5.7 billion, providing him with the capital to do things like become the majority owner of the Dallas Mavericks and become a world-class philanthropist focused on other endeavors (such as bringing pharmaceutical prices down via his Cost Plus Drugs business).
However, I’m going to focus this piece on three of the more recent investments Cuban has made in the stock market, and why he may be banking on these companies as revolutionary bets during this part of the market cycle. These are companies that many may scratch their heads at, which makes them even more intriguing on a number of levels.
Key Points About This Article:
- Billionaire investor Mark Cuban has built companies and brands over the years, and has famously sold near the top, something other magnates have had trouble doing.
- Aside from his ongoing business endeavors, here are three stocks Cuban is betting on right now investors may want to consider.
- If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.
Coinbase (COIN)
Coinbase’s (NASDAQ:COIN) business model is one that many investors can relatively easily understand. Known as a centralized exchange in the world of crypto trading, institutional and retail investors can set up accounts at Coinbase to trade cryptocurrencies. Unlike other options available to investors (many of which operate on the blockchain, and require more sophisticated technical knowhow), Coinbase has created an environment where it’s relatively easy to trade and get started. This factor alone has led to impressive market share in the U.S., and has also led to strong revenue growth over time from a diverse group of crypto products and services.
Mark Cuban has said in the past that he owns stakes in a number of different digital coins and blockchain companies, with most of his holdings in Bitcoin and Ethereum, as well as some other crypto holdings. Thus, this position in Coinbase shouldn’t be surprising to many investors.
Importantly, Coinbase earns the vast majority of its revenue via trading fees. Thus, as trading volume rises globally (and particularly in the U.S. market), Coinbase stands to be a key beneficiary of this trend. Thus, as crypto prices go, so too does Coinbase’s stock price (at least often, they’re highly correlated), with trading activity markedly higher during bull markets.
The company’s focus on other services, such as staking, providing interest on stablecoin holdings, custodial services, and operating its own blockchain (Base) have allowed investors to benefit from some cash flow diversification and value capture across various elements of the crypto market. In short, if you’re a crypto bull, like Mark Cuban appears to be, this is a great way to play this space.
At a valuation of around 37-times trailing earnings, this is a stock that’s not particularly expensive for investors who think the growth in the crypto sector will continue over the long-term. We’ll have to see if Cuban is right with this pick over the long-term, but it’s certainly a compelling one to consider at these levels, at least in my view.
Uber Technologies (UBER)
Uber Technologies (NYSE:UBER) is perhaps the most notable ride-sharing giant, known for creating an entirely new market where there was none (and ticking off many taxi companies in the process). Uber has continued to grow quite steadily over a very long period of time, and has shifted to focusing on profitability in recent years. While this has meant higher prices for consumers, it’s meant serious cash flow growth for investors. And after all this earnings growth, UBER stock now trades at a forward price-earnings multiple under 35-times, which is historically low for this fast-growing company.
Cuban has stated in the past that he regretted not putting capital to work in Uber earlier, when he had the opportunity to invest. But recent comments has suggested the billionaire investor is involved in this name, though the degree to which he is invested is unclear.
There are a number of headwinds that have proliferated for Uber in recent months, with Tesla’s (NASDAQ:TSLA) recent robotaxi event showcasing the effect that self-driving cars, or robotaxis, may have on the company’s business over the long-term. However, with this event generally fizzling out relative to expectations, Uber’s stock price has been on the rise of late. I think competitive pressures are likely being overstated right now (given how far away we are, from a regulatory standpoint, on true self-driving robotaxi capabilities), and Mark Cuban appears to agree.
Uber has continued to enhance its capabilities on this front as well. The company recently announced a partnership with Avride to incorporate autonomous vehicles and delivery robots. The collaboration began with sidewalk robots for Uber Eats in Austin, with plans for expansion to other cities. By 2025, the companies aimed to enhance their autonomous fleet and introduce a robotaxi service, marking Uber’s strategic shift towards integrating autonomous technology into its offerings.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) is a company that really needs no introduction for most investors. The leader in providing high-performance chips to the market, Nvidia’s core product portfolio really supports the entire AI revolution we’re seeing. Without Nvidia, one could argue that the advancements we’ve seen on the artificial intelligence front wouldn’t be possible. Indeed, it shouldn’t be surprising to readers that Mark Cuban has reported to be an owner of Nvidia stock, and this position is likely a significant one in his portfolio.
What a bet this has been.
The company has continued to see “insane demand” for its products and services, with corporate spending on AI initiatives continuing to rise. Now, concerns have bled into this sector, after ASML (NASDAQ:ASML) reported slowing order growth for its machines which are key in the development of the high-performance chips Nvidia and others make. We’ll have to see if this trend continues, and it’s something to watch. But currently, demand does appear to be there to support continued earnings outperformance over the long-term.
Analysts appear to agree, with the consensus earnings expectations for Nvidia increased to $2.81 for the coming quarter, as of last month. This upgrade has been driven by analysts’ rising optimism about the company’s prospects, and in particular, comments from Nvidia’s management team around supply and demand dynamics in this space. We’ll have to see how earnings shape up in the coming quarters, and I do think Nvidia will be more volatile than usual into year end. But for long-term investors who have simply held Nvidia over the years, this stock has been a no-brainer, and Mark Cuban clearly has a winner here.
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