Ride-hailing company Uber Technologies (UBER) reported upbeat earnings for the first quarter of 2025 but fell short of revenue expectations. Nonetheless, the company issued encouraging guidance despite macro challenges. While several top analysts raised their price targets and reaffirmed a Buy rating, Wedbush analyst Scott Devitt downgraded UBER stock to Hold from Buy but raised the price target to $85 from $80, citing the “lack of clear catalysts in the near-term.”
Uber Technologies stock has rallied more than 36% so far in 2025, defying the weakness in the broader market due to tariff wars and macro uncertainties.
Wedbush Moves to the Sidelines on UBER Stock
Wedbush’s Devitt noted that Uber’s Q1 gross bookings of $32.8 billion increased 13.7% year over year but lagged the Street’s estimates by 1%. In particular, the 5-star analyst pointed out that the mobility gross bookings growth of 13.5% was “relatively modest” compared to expectations. However, Uber projects Q2 gross bookings growth in the range of 14.5% to 18.3%, ahead of the consensus of 14.3%, observed Devitt.
The analyst highlighted that UBER stock has rallied considerably over the last few years, as its business model recovered following the pandemic. That said, Devitt emphasized that the magnitude of Uber Technologies’ beats compared to estimates has reduced considerably in recent periods, as the company’s performance has “caught up to investor expectations.”
While Devitt acknowledges management’s track record of solid execution across key initiatives, he contends that Uber’s business is now well understood and the lack of near-term catalysts will limit upside to expectations in the current environment, impacting further multiple expansion.
Devitt ranks 515 out of more than 9,500 analysts on TipRanks. He has a success rate of 50%, with an average return per rating of 10.8%.
Is UBER Stock a Buy or Sell Right Now?
Unlike Devitt, most analysts remain bullish on UBER stock due to the company’s strong underlying fundamentals. With 25 Buys and three Holds, Uber Technologies stock scores a Strong Buy consensus rating on TipRanks. The average UBER stock price target of $93.84 implies 14% upside potential from current levels.
