The portfolio manager explains the "most delicate thing" about climbing companies



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The mobile phone application has managed to transform the way we drive and think about transportation, but investing in the business can be a little more complicated.

"I think leading companies are a bit of a tricky task to look for this profitability," said Sarah Hunt, portfolio manager at Alpine Woods Capital Investors, at YFi AM.

"At the moment, everyone is very excited about this growth," she added. "It's also a question of convenience. … He obviously has a great deal of wit. Most of us have the application on our phones. But, for me, it 's a little tricky because … I can very quickly check different prices so that for other things, like Amazon, I do not tend to do it. "

A driver carrying placards for Lyft and Uber waits for a traffic light in front of Boston South Station after taking a passenger on June 15, 2017. (Photo by Lane Turner / The Boston Globe via Getty Images / Yahoo Finance Reverse Photo)

Adding drivers to the mix also complicates things.

"At one point, the profitability of drivers becomes a bit tricky because there are too many people trying to drive at the same time and there is more than one company doing it," Hunt said. "I think you need to see more business players either be more profitable or find a way to make those factors more profitable."

Uber plans to enter the autonomous driving space, and this is not the only one. Last week, Tesla CEO Elon Musk told investors that he predicted that driverless cars will bring Tesla to a market capitalization of $ 500 billion by 2021.

"So the question will really be: can you get to a point where all these companies set their prices so they can be profitable?" Said Hunt. "Or have they grown enough in the markets they need to grow in order to be able to look for profitability and focus on that?"

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