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San Francisco, California-based Uber Technologies, Inc. (UBER) provides a platform that allows users to access transportation, and food ordering services. With a market cap of $158.8 billion, Uber operates the world’s largest mobility platform with its operations spanning approximately 70 countries and over 10,000 cities across the globe.
Companies worth $10 billion or more are generally described as "large-cap stocks," and Uber Technologies fits this bill perfectly. Given its dominance in the mobility and food ordering space, its valuation above this mark is not surprising. The company has recently committed to becoming a fully electric, zero-emission platform by 2040, with 100% of rides taking place in zero-emission vehicles, on public transit, or with micromobility, showcasing its aggressive stance towards tackling climate change.
Despite its notable strengths, Uber has dropped 14.4% from its all-time high of $87 touched on Oct. 11, 2024. However, Uber has gained 4.5% over the past three months, outperforming the Dow Jones Industrials Average’s ($DOWI) 3.4% dip during the same time frame.
Over the longer term, Uber’s performance looks much grimmer. Uber has gained 3.6% over the past six months and plunged 8.1% over the past 52 weeks, lagging behind DOWI’s 5.5% returns over the past six months and 10.5% gains over the past year.
To confirm the recent uptick in prices, Uber has soared above its 50-day and 200-day moving averages in early February.
Despite reporting the strongest quarter ever, Uber Technologies’ stock plunged 7.6% after the release of its Q4 results on Feb. 5. Driven by record demand for mobility as well as delivery, Uber’s revenues surged 20.4% year-over-year to approximately $12 billion, exceeding the Street’s expectations by 1.7%. Meanwhile its income from operations increased by a notable 18.1% year-over-year to $770 million. Furthermore, the company reported a staggering 122.1% year-over-year growth in free cash flows, totaling $1.7 billion.
However, due to the rapidly strengthening dollar, Uber’s gross bookings growth guidance for Q1 2025 fell below the Street’s expectations, leading to a sharp decline in stock prices. Nonetheless, Uber stock rebounded 8.6% in the next trading session.
Uber has also lagged behind its peer Grab Holdings Limited’s (GRAB) 52.6% surge over the past 52 weeks and 42.5% returns over the past six months.
Despite its underperformance on the stock exchange, Uber’s fundamentals have remained solid. Among the 45 analysts covering the stock, the consensus rating is a “Strong Buy.” Its mean price target of $90.05 suggests a 21% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
