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Founded in 2009 and headquartered in San Francisco, California, Uber Technologies, Inc. (UBER) is a global leader in mobility and delivery services, revolutionizing transportation through its innovative ride-hailing, food delivery, and freight logistics platforms. With a market cap of $140.2 billion, Uber connects millions of users worldwide, leveraging cutting-edge technology to enhance urban mobility and redefine the future of transportation.
Shares of the ride-hailing company have significantly underperformed the broader market over the past year. UBER has declined marginally over this time frame, while the S&P 500 Index ($SPX) has risen 23.3%. But in 2025, things turned favorable - UBER stock is up 10.4%, compared to the SPX’s 3.2% rise on a YTD basis.
Looking further, UBER underperformed compared to SPDR S&P Transportation ETF (XTN). The exchange-traded fund has gained about 13% over the past year. However, UBER’s gains on a YTD basis outshines the ETF’s 4.3% returns over the same time frame.
On Jan. 6, Uber teamed up with Nvidia Corp. (NVDA) to advance autonomous mobility by leveraging Nvidia’s Cosmos platform and DGX Cloud. The collaboration aims to enhance AI-driven autonomous driving technology by utilizing Uber’s vast trip data alongside NVIDIA’s cutting-edge AI infrastructure.
Despite delivering strong Q3 earnings, UBER stock fell 9.3% following its Oct. 31 report. Revenue increased 20.4% year over year to $11.19 billion, surpassing estimates by 1.9%, while EPS of $1.20 beat forecasts by 196%. EBITDA reached $1.69 billion, slightly above expectations. Its margins improved, with gross margin rising to 39.6% while operating and EBITDA margins climbed to 9.5% and 15.1%, respectively.
For the current fiscal year, which ended in December, analysts expect Uber's EPS to grow 112.6% to $1.85 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on one other occasion.
Among the 45 analysts covering UBER stock, the consensus rating is a “Strong Buy.” That’s based on 36 “Strong Buy” ratings, three “Moderate Buys,” and six “Holds.”
This configuration is slightly less bullish than three months ago when 37 analysts advised a “Strong Buy.”
On Jan. 28, Justin Post from Bank of America Securities (BAC) maintained a “Buy” rating on UBER, with a price target of $93, implying a potential upside of 39.7% from current levels.
The mean price target of $90.76 represents a 36.3% premium to UBER’s current price levels. The Street-high price target of $120 suggests an ambitious upside potential of 80.2%.
