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Uber Technologies (UBER)
NYSE:UBER

Uber Technologies (UBER) AI Stock Analysis

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UB

Uber Technologies

(NYSE:UBER)

Rating:85Outperform
Price Target:
$108.00
▲(12.03%Upside)
Uber Technologies demonstrates strong financial health with consistent revenue growth and profitability improvements. The strategic acquisitions and partnerships, combined with robust cash flow, support a positive outlook. While technical indicators suggest caution due to overbought conditions, the company's valuation remains moderate. Overall, Uber's strategic positioning and financial performance provide a solid foundation for future growth.
Positive Factors
Growth Prospects
Growing number of autonomous vehicle partnerships globally and strong bookings growth suggest optimism for Uber's future.
Insurance Costs
Uber has seen success in its Alto partnership, allowing Uber to pass on insurance liability and risk to Alto, lowering insurance costs.
Partnerships
Uber may be able to do more distribution deals with Waymo given the clear success of the Austin launch.
Negative Factors
Delivery Supply
Recent immigration enforcement is less likely to impact Ridesharing supply but could hurt Delivery courier supply.
Pricing Growth
Expect healthy rideshare volume growth driven by expansion into lower price use cases but weighing on pricing growth.
Regulatory Challenges
Waymo is still in the early stages of the application process in NYC, which could face months or even years of regulatory process.

Uber Technologies (UBER) vs. SPDR S&P 500 ETF (SPY)

Uber Technologies Business Overview & Revenue Model

Company DescriptionUber Technologies, Inc. is a leading technology company that operates in the transportation and mobility sectors. Primarily known for its ride-hailing services, Uber facilitates on-demand transportation through a mobile app that connects drivers with riders. In addition to its core ride-sharing services, Uber has expanded its operations to include food delivery through Uber Eats, freight services with Uber Freight, and other mobility solutions such as bike and scooter rentals. The company aims to make transportation as reliable as running water, everywhere for everyone.
How the Company Makes MoneyUber makes money primarily through three main segments: Mobility, Delivery, and Freight. The Mobility segment generates revenue by charging service fees to drivers for connecting them with riders, as well as through dynamic pricing models that adjust fares based on demand. The Delivery segment, primarily through Uber Eats, earns revenue by charging restaurants a service fee for order delivery and from delivery fees paid by consumers. The Freight segment generates revenue by providing shippers with a logistics platform to connect with carriers for freight transportation. Additionally, Uber engages in strategic partnerships and investments, such as in autonomous vehicle technology and partnerships with car rental companies, to expand its service offerings and customer base. These diversified streams contribute significantly to Uber's overall earnings.

Uber Technologies Key Performance Indicators (KPIs)

Any
Any
Monthly Active Platform Customers
Monthly Active Platform Customers
Measures the number of unique users engaging with Uber's platform each month, indicating user retention, platform popularity, and potential for revenue growth.
Chart InsightsUber's monthly active platform customers have shown a robust recovery and growth trajectory, reaching 170 million by early 2025, a 14% increase year-on-year. This aligns with Uber's strategic partnerships and international expansion efforts, as highlighted in their earnings call. The growth is supported by strong performance in both mobility and delivery sectors, despite competitive pressures and insurance cost challenges. Uber's focus on strategic alliances, like those with Waymo and Open Table, and the acquisition of Trendyol Go, are pivotal in sustaining this upward trend.
Data provided by:Main Street Data

Uber Technologies Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 12.32%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
Uber's first quarter 2025 earnings call reflected a strong performance with significant growth in audience, trips, and financial metrics like EBITDA and free cash flow. The successful launch of partnerships, particularly with Waymo, and the profitability in the delivery segment were significant positives. However, competitive pressures and ongoing challenges with insurance costs in the U.S. were notable concerns. Overall, the highlights significantly outweigh the lowlights.
Q1-2025 Updates
Positive Updates
Strong Growth in Key Metrics
Audience grew 14% to 170 million monthly active consumers, trips up 18%, retention rates at all-time highs globally, and gross bookings grew in line with trips. Record adjusted EBITDA of $1.9 billion, up 35% year-on-year, and free cash flow of $2.3 billion.
Waymo Partnership Success
Launch with Waymo in Austin with high utilization of nearly 100 cars. Waymos are busier than 99% of Austin drivers in terms of trips per day, with plans to increase vehicle count.
Delivery Business Profitability
Delivery margins at 3.7% EBITDA, up 70 basis points year-over-year, driven by advertising and operational leverage. Grocery and retail hit breakeven in Q4 of last year and now accretive.
International Expansion
Signed partnership with Open Table, Delta SkyMiles partnership, and announced acquisition of Trendyol Go for growth in Turkey.
Negative Updates
Competitive Intensity
Intense competition in global markets for both mobility and delivery, especially from Lyft in the U.S., Bolt in Europe, and DiDi in Latin America.
Insurance Costs Impact
Despite a favorable insurance cost environment, ongoing legal system abuse in the U.S. contributes to higher insurance costs compared to international markets.
Company Guidance
During Uber's first quarter 2025 earnings call, key guidance metrics highlighted include a 14% increase in monthly active consumers to 170 million and an 18% rise in trips, contributing to a record adjusted EBITDA of $1.9 billion, which marks a 35% year-on-year growth. Free cash flow also reached $2.3 billion. Gross bookings matched the 18% trip growth, with strength in both mobility and delivery sectors. The call emphasized Uber's strategic partnerships, including those with Waymo and Open Table, and the acquisition of Trendyol Go to boost future growth in Turkey. Looking ahead, Uber projected strong top-line growth and even stronger profitability growth for Q2, with expectations of significant performance in the seasonally stronger second half of the year.

Uber Technologies Financial Statement Overview

Summary
Uber's financial performance is robust, characterized by strong revenue growth and improving profitability. The income statement highlights a net profit margin of 27.1%, indicating effective cost management. The balance sheet reflects a manageable debt-to-equity ratio and high return on equity, while cash flow statements show healthy cash generation and free cash flow growth, supporting operations and strategic initiatives.
Income Statement
88
Very Positive
Uber's income statement shows strong revenue growth and improving profitability. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 37.7%, and the net profit margin is about 27.1%, indicating effective cost management. The revenue growth rate from the previous year to the TTM period is around 3.2%, showing consistent expansion. The EBIT and EBITDA margins have also improved significantly over the years, highlighting the company's improved operational efficiency.
Balance Sheet
75
Positive
Uber maintains a moderate balance sheet with a debt-to-equity ratio of approximately 0.51 in the TTM period, reflecting a manageable level of leverage. The return on equity (ROE) is an impressive 55.9%, indicating strong profitability relative to shareholder equity. The equity ratio stands at around 41.6%, suggesting a solid equity base relative to total assets, although there is room for improvement.
Cash Flow
90
Very Positive
Uber's cash flow statement shows robust free cash flow growth, with free cash flow increasing by about 12.9% from the previous year to the TTM period. The operating cash flow to net income ratio is approximately 0.66, indicating healthy cash generation relative to earnings. Additionally, the free cash flow to net income ratio of 0.63 suggests that Uber is effectively converting earnings into cash, supporting its operational and strategic activities.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue45.38B43.98B37.28B31.88B17.45B11.14B
Gross Profit17.96B17.33B14.82B12.22B8.10B5.99B
EBITDA7.37B5.38B1.93B-7.91B360.00M-5.91B
Net Income12.29B9.86B1.89B-9.24B-533.00M-6.75B
Balance Sheet
Total Assets52.82B51.24B38.70B32.11B38.77B33.25B
Cash, Cash Equivalents and Short-Term Investments6.03B6.98B5.41B4.31B4.29B6.83B
Total Debt11.12B11.13B11.83B11.14B11.11B9.28B
Total Liabilities29.92B28.77B26.02B23.61B23.43B19.50B
Stockholders Equity21.98B21.56B11.25B7.34B14.46B12.27B
Cash Flow
Free Cash Flow7.79B6.89B3.36B390.00M-743.00M-3.36B
Operating Cash Flow8.04B7.14B3.58B642.00M-445.00M-2.75B
Investing Cash Flow-3.48B-3.18B-3.23B-1.64B-1.20B-2.87B
Financing Cash Flow-3.85B-2.09B-95.00M15.00M1.78B1.38B

Uber Technologies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price96.40
Price Trends
50DMA
87.79
Positive
100DMA
80.96
Positive
200DMA
75.96
Positive
Market Momentum
MACD
2.98
Negative
RSI
66.95
Neutral
STOCH
89.19
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UBER, the sentiment is Positive. The current price of 96.4 is above the 20-day moving average (MA) of 90.20, above the 50-day MA of 87.79, and above the 200-day MA of 75.96, indicating a bullish trend. The MACD of 2.98 indicates Negative momentum. The RSI at 66.95 is Neutral, neither overbought nor oversold. The STOCH value of 89.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UBER.

Uber Technologies Risk Analysis

Uber Technologies disclosed 64 risk factors in its most recent earnings report. Uber Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Uber Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
85
Outperform
$203.85B16.8574.39%17.60%758.07%
76
Outperform
$25.19B190.3611.06%26.72%
NENET
69
Neutral
$67.07B-7.35%27.79%56.19%
69
Neutral
$20.41B109,357.146.85%16.11%
64
Neutral
$19.56B891.070.38%17.24%
62
Neutral
$8.67B-34.18%24.11%21.87%
50
Neutral
C$2.94B1.84-63.12%2.59%11.24%-12.42%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UBER
Uber Technologies
96.40
22.87
31.10%
NTNX
Nutanix
73.61
16.91
29.82%
NET
Cloudflare
181.92
99.90
121.80%
GRAB
Grab
4.92
1.33
37.05%
CFLT
Confluent
24.50
-0.54
-2.16%
TOST
Toast Inc
44.26
19.89
81.62%

Uber Technologies Corporate Events

M&A TransactionsBusiness Operations and Strategy
Uber Acquires Majority Stake in Trendyol GO
Positive
May 6, 2025

On May 6, 2025, Uber Technologies announced an agreement to acquire an 85% controlling stake in Trendyol GO, a leading online meal and grocery delivery service in Türkiye, for approximately $700 million. This acquisition, pending regulatory approval, is expected to enhance Uber’s growth and strengthen its delivery sector presence in Türkiye, benefiting consumers, couriers, and small businesses.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 14, 2025