Aristotle Capital Management, LLC released its Q4 2025 investor letter, noting U.S. equity markets hitting all-time highs with the S&P 500 up 2.66% and the Bloomberg U.S. Aggregate Bond Index rising 1.10%. Value stocks outperformed growth stocks, but concerns about AI revenue circularity and long-term returns emerged. The Composite returned 1.45% gross of fees, lagging major indices.

Uber Technologies, Inc. (NYSE: UBER) was highlighted in Aristotle Capital’s letter as a major detractor, despite record trip volumes and strong gross bookings. Uber’s stock underperformed due to concerns over profitability, regulatory risks, and autonomous vehicle uncertainty. Management signaled reinvestment in affordability, cross-platform engagement, and AV initiatives, impacting near-term margins.

Goldman Sachs remains constructive on Uber Technologies, Inc. (NYSE: UBER), ranking it 10th among the 30 most popular stocks among hedge funds. 143 hedge fund portfolios held UBER at the end of Q3 2025. While UBER shows potential, some AI stocks offer greater upside with less downside risk. Investors interested in undervalued AI stocks can find more information in a free report.

Read more at Yahoo Finance.: Investor Shift from Growth Stocks Affected Uber (UBER) in Q4