LYFT or UBER after Q4? Earnings misses hit both, but valuation, buybacks and price performance may tilt the scales toward one ride-hailing stock.
Uber: Market Is Likely Pricing It Wrong By Ignoring Its Platform Moat
Recently, Zacks.com users have been paying close attention to Uber (UBER). This makes it worthwhile to examine what the stock has in store.
UBER expands its Life360 partnership to integrate teen accounts and real-time trip tracking, aiming to boost family travel coordination and engagement.
Waymo's momentum is undeniable, but Uber's scale is being undervalued in an AI-driven selloff.
Uber Technologies maintains a strong buy rating with a reiterated $150 fair value, citing accelerating fundamentals and market overreaction. UBER's AV integration, diversified profit pools, and global expansion position it to lead in autonomy, countering bearish disruption narratives. Delivery, international mobility, and suburban markets drive robust growth, with delivery alone justifying a substantial portion of current valuation.
The ride-hailing company expects to put more robotaxis in more cities this year.
Uber Technologies delivered strong 2024 results, with revenue up 18% to $52B and normalized EPS rising 82% to $2.46/share. UBER's hybrid model, leveraging both AVs and human drivers, currently maximizes utilization and reliability, supporting operational resilience amid regulatory and technological uncertainty. Uber One loyalty program and advertising revenues are accelerating, with Uber One members reaching 46M and ads surpassing a $2B run rate, enhancing cross-platform monetization.
Uber is leveraging a hybrid AV-human driver model to maximize utilization and maintain leadership in the evolving autonomous mobility landscape. UBER's strategy includes building charging and maintenance infrastructure, deepening partnerships with AV operators, and offering free data to foster a fragmented, competitive AV ecosystem. Q4 FY25 saw gross bookings up 22% YoY to $193B, with strong operational leverage as adjusted EBITDA rose 35% YoY to $8.7B and FCF up 42% to $9.8B.
DoorDash (DASH) currently offers a superior growth profile and cleaner earnings momentum, versus Uber (UBER), supporting my tactical preference for DASH at current levels. DASH's Q3 2025 showed 27% revenue growth, 21% order growth, and a 51% increase in GAAP net income, highlighting robust operational execution and expansion. Recent global acquisitions and a partnership with OpenAI position DASH to diversify beyond restaurant delivery and challenge competitors in adjacent markets.
Uber is reportedly bringing its delivery business to seven new European markets. The expansion, slated for this year, involves Austria, Denmark, Norway, the Czech Republic, Greece, Romania and Finland, Uber head of delivery Susan Anderson told the Financial Times (FT) Sunday (Feb. 15).