Uber Technologies is the IBD Stock of the Day for Thursday. Shares of the ride-hailing and food-delivery firm are forming a cup-with-handle pattern as Uber stock chases a return to its late 2024 record highs.
After an unsteady performance last year, Uber stock started strong out of the gate in 2025. The stock is up 27% year to date despite a pullback late last week and at the start of this week.
On the stock market today, Uber stock slipped 2.2% to close at 74.21. Shares have formed a cup-with-handle pattern with an 82.10 buy point on Uber's weekly chart, according to MarketSurge pattern recognition. The handle buy point is on pace to appear on Uber's daily chart after Thursday's close.
Uber's Robotaxi Concerns
A series of rallies and slumps last year left Uber stock roughly 2% lower by the end of 2024 from where it started. Shares were hit by concerns about the steady expansion of Alphabet's Waymo robotaxis – as well as Elon Musk's stated vision to launch a Tesla robotaxi service in the near future.
Investors fear new robotaxi services could challenge Uber's dominance of the ride-hailing market. But Uber is pitching itself as a partner to autonomous vehicle developers and has a growing partnership with Waymo. And during Uber's earnings call earlier this month, Uber CEO Dara Khosrowshahi said autonomous vehicles are still a ways off. Uber's ability to forecast demand and find riders, he added, will make it a key partner for robotaxi players. (More on Uber's robotaxi strategy here.)
The commentary and strong results from Uber's core business in the fourth quarter appear to be easing concerns. Uber stock is up more than 18% since the company reported results on Feb. 5.
Uber also added a prominent new investor. Bill Ackman announced Feb. 7 that his Pershing Square Capital Management fund began amassing a position in Uber in January and now holds 30.3 million shares.
"We believe that Uber is one of the best managed and highest quality businesses in the world," Ackman wrote on X. "Remarkably, it can still be purchased at a massive discount to its intrinsic value."
Uber Stock Chases Return To Record Highs
Uber is chasing a return to a record high of 87 it reached in early October. The stock offered a positive signal on Tuesday, as Uber bounced up from its 21-day exponential moving average after its recent pullback.
Analysts are forecasting another year of strong sales growth but with a slowdown against a hard comparison with 2024. Uber's sales are seen rising 14.6% year over year to $50.4 billion in 2025, compared to 18% growth in 2024 and 17% sales growth in 2023.
Uber has an IBD Composite Rating of 95 out of a best-possible 99, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Underscoring its strong recent run, Uber stock's Relative Strength Rating is up to 72 out of a best-possible 99, according to IBD Stock Checkup. The score was at 26 to start the year.
Uber stock also has a solid Accumulation/Distribution Rating of B. The A/D rating measures daily price and volume changes in institutional ownership of a stock for the prior 13 weeks. Uber's score indicates more institutional buying than selling in recent weeks.
