Latest news with #UBER
Yahoo
a day ago
- Automotive
- Yahoo
Autonomous Ambitions: Uber's Next Moonshot or Money Pit?
Key Points Autonomous vehicle technology still has some developmental work to be done. It's showing enough cost-effective success already, however, to say robotaxis will become a common reality. The math makes sense, too -- or will soon enough. 10 stocks we like better than Uber Technologies › Twenty years ago, the notion of anyone using their own vehicle to drive a complete stranger from point A to point B seemed laughable, while self-driving cars were mostly the stuff of science fiction. What a difference just a few years makes. Now, largely thanks to Uber Technologies (NYSE: UBER), ride-sharing is quite common, and autonomous vehicles are a reality. They're even being commercialized as so-called robotaxis on a small scale right now to get the technology's final kinks worked out while companies figure out how to best operate the business. Uber is one of the companies easing its way into this autonomous ride-hailing market, starting with a partnership with Alphabet's (NASDAQ: GOOG)(NASDAQ: GOOGL) Waymo, although it also recently made a robotaxi development deal with electric vehicle (EV) maker Lucid. The only problem(s)? Aside from no guarantees that most consumers and governmental jurisdictions will embrace self-driving automobiles, these cars aren't cheap. Getting into the autonomous robotaxi business presents a huge cost that Uber Technologies isn't paying right now. Remember, its drivers supply their own vehicles. This uncertainty leaves the company's current and prospective shareholders in a pickle. Will Uber's expensive ambitions pan out profitably, or is it wasting its money and time? The numbers to consider when it comes to Uber Answering the question first requires knowing all the relevant numbers. Chief among these numbers is the cost of an autonomous vehicle, and more specifically, a self-driving robotaxi. The possible figures are all over the map, but as it stands right now, the combination of a car and its autonomous driving tech can easily put the price of such a vehicle at over $100,000. As is the case with any technology, though, the longer that self-driving solutions are developed and the greater their production scale grows, the cheaper they get. For perspective, electric vehicle maker Tesla's (NASDAQ: TSLA) CEO Elon Musk has suggested its planned robotaxi -- called Cybercab, slated to begin production next year -- could be priced at less than $30,000 apiece. Realistically speaking, based on these numbers, Uber's cost to get into the autonomous ride-hailing business is likely to be in the ballpark of $75,000 per car. This obviously isn't cheap. But are human drivers who supply their own vehicles actually any cheaper? Although the numbers can vary a great deal, data from salary-research website Glassdoor suggests Uber's drivers are earning an average of around $20 per hour -- a figure that jibes with reporting from several other sources. While most of its 7 million-plus drivers don't drive on a full-time basis, if they did work 40 hours per week, this would translate into an annual pay of a little over $40,000 per year. All other things being equal, Uber could have just as many cars on the road for 40 hours per week as it does now and either annually save this amount of money, lower its prices, or a combination of both. There's certainly enough fiscal advantage for this company to cover the cost of these cars. All other things aren't equal, of course. Vehicles cost money above and beyond their sticker price. They also require maintenance, commercial registration, taxes, and a place to park them when they're not in use. Still, owners of commercial vehicles get to depreciate their cost, and they'll likely last for at least a couple of years before they need to be replaced. Let's also assume that Uber CEO Dara Khosrowshahi thought carefully about all of these numbers -- both current and projected -- before saying in May that "we are confident that AV [autonomous vehicle] technology is the single greatest opportunity ahead for Uber." The thing is, despite his bias, Khosrowshahi may be exactly right. The market is beginning to form Getting straight to the point, ride-hailing itself is becoming more mainstream. As of its first fiscal quarter of the year, on global basis, 170 million different people use Uber's services at least once per month, with the U.S. being its single biggest market. Although a majority of people living in the United States have never used any ride-hailing service like Uber's, over one-third of them have, and that number continues growing every year. Ditto for outside of the U.S. Indeed, Straits Research believes the global ride-hailing market is set to grow at an average annualized pace of 21% through 2033, growing from less than $90 billion per year now to more than $900 billion per year by the end of this stretch. Uber's important North American market is expected to lead this growth, too. But will the company be able to produce this growth using robotaxis in an environment where so many consumers are still skeptical of autonomously driven vehicles? Once again, things may be less different than they seem and feel. Most U.S. drivers are still more fearful than not, to be clear. A recent survey taken by trip-planning service AAA indicates 61% of the country's drivers are afraid of self-driving vehicles, versus only 13% that trust them (26% are still unsure). The world was also largely fearful of riding in airplanes in that industry's infancy, too (or, for that matter, traveling by train). As their reliability and safety were proven, consumers came to appreciate their cost-effective convenience. The robotaxi business isn't apt to be any different. It's largely just a matter of education and marketing, highlighting numbers like the fact that -- on a per-mile basis -- Waymo's self-driving taxis are 92% less likely to injure a pedestrian and 96% less likely to be involved in a collision at an intersection than a human-driven vehicle is, according to data compiled by Alphabet and published in industry journal Traffic Injury Prevention. To this end, Goldman Sachs says the autonomous taxi market is set to grow at an annualized pace of nearly 67% over the course of the coming five years. Goldman adds that gross margins for vertically integrated operators like Tesla could reach a healthy 40% to 50%, implying the per-vehicle cost of self-driving cars will indeed decrease as the business scales up. Uber technically isn't vertically integrated. But partnerships like the aforementioned one with Lucid will provide it with the advantage of similar flexibility. The verdict on Uber So, are Uber's autonomous ambitions a savvy moonshot, or a money pit? It's not really up for debate -- while there's a significant cost component to Uber's foray into the robotaxi business, autonomous vehicles are a high-odds bet with a huge payoff. As Khosrowshahi himself noted in February's Q1 earnings call, Uber's commanding lead of the ride-hailing market paired with its progress on the self-driving technology means this ride-hailing company is "uniquely positioned to capture the $1 trillion-plus opportunity that autonomy will unlock in the U.S. alone." The only downside? Even Khosrowshahi knows it's still going to take another 10 to 15 years for all of this work and investment to really start bearing fruit. The good news for investors is, Uber Technologies is already profitable, and increasingly so, thanks to the continued growth of the ride-hailing business that's currently being handled well enough by humans. There are certainly less-compelling stocks to own than this one in the meantime. Should you invest $1,000 in Uber Technologies right now? Before you buy stock in Uber Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Uber Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $633,452!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,083,392!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 James Brumley has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Goldman Sachs Group, Tesla, and Uber Technologies. The Motley Fool has a disclosure policy. Autonomous Ambitions: Uber's Next Moonshot or Money Pit? was originally published by The Motley Fool
Yahoo
a day ago
- Business
- Yahoo
Uber Technologies Stock: Is Wall Street Bullish or Bearish?
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 $189.5 billion, Uber operates the world's largest mobility platform with its operations spanning approximately 70 countries and over 10,000 cities across the globe. The mobility giant has significantly outperformed the broader market over the past year. Uber has soared 44.4% on a YTD basis and 36.6% over the past 52 weeks, outpacing the S&P 500 Index's ($SPX) 8.3% gains in 2025 and 16.6% surge over the past year. More News from Barchart Here's What Happened the Last Time Novo Nordisk Stock Was This Oversold Tesla Just Signed a Chip Supply Deal with Samsung. What Does That Mean for TSLA Stock? Earnings Will Be 'Worse Than Expected' for UnitedHealth. How Should You Play UNH Stock Here? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Narrowing the focus, UBER has also outpaced the sector-focused Technology Select Sector SPDR Fund's (XLK) 13.6% gains on a YTD basis, and 22.7% returns over the past 52 weeks. Uber Technologies' stock prices dropped 2.5% following the release of its mixed Q1 results on May 7. Continuing its solid momentum, the number of trips through Uber's platform increased 18% year-over-year to 3 billion, which was primarily supported by an increase in monthly active users. Meanwhile, its revenues increased nearly 17% on a constant currency basis. However, due to a stronger dollar during the quarter, its revenues increased by 14% on a reported basis to $11.5 billion, missing the consensus estimates by a small margin. Its adjusted EBITDA increased by an even more impressive 35% year-over-year to $1.9 billion, and its EPS of $0.83 beat the Street's expectations by 62.8%. For the full fiscal 2025, ending in December, analysts expect Uber to deliver an EPS of $2.90, marking a 36.4% decline year-over-year. However, the company has a solid earnings surprise history. It has surpassed the Street's bottom-line expectations in each of the past four quarters by a large margin. Uber has a consensus 'Strong Buy' rating overall. Of the 47 analysts covering the stock, opinions include 32 'Strong Buys,' five 'Moderate Buys,' and 10 'Holds.' This configuration is slightly less bullish than two months ago, when 34 analysts gave 'Strong Buy' recommendations. On Jul. 29, Stifel analyst Mark Kelley reiterated a 'Buy' rating on Uber and raised the price target to $117. Its mean price target of $101.58 suggests a 16.6% upside from current price levels, while the Street high target of $120 represents a 37.8% premium. 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. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-07-2025
- Business
- Yahoo
UBER is Available to the Public for Travel Bookings and Reservations
SAN FRANCISCO, CALIFORNIA / / July 21, 2025 / UBER has been providing Private Air Travel, First Class Air Travel, Business Class Air Travel, Economy Class Air Travel, Air & Hotel, Cruise, All Inclusive Hotel Travel Vacations and Short-Term Rental Accommodations. UBER is also currently offering BNB Rental and Real Estate Advisory services for free. Hotel and Host Rental Listings are completely free of charge. "The new incoming UBER paradigm in a Travel based application will include Artificial Intelligence, Stable Coin, connect all people, cultures from the entire world and create efficiencies that are missing in the entire travel process. We are the only legally authorized UBER at to be able to advise and commence commerce with Travel. All others that are, not registered with the CA-USDOJ are to be referred to Robert Bonta - Attorney General and Seller of Travel Regulator of the State of California Department of Justice for full prosecution," states Brent Ritz, Chairman of UBER. Brent Ritz, the CA-USDOJ UBER Seller of Travel and Chairman of UBER, has been advising Presidents and Companies on Travel, Ground Transportation, Real Estate and Security for almost four decades. For more information on The United States Sovereign Wealth Fund Interest and Public Interest in the UBER, please contact, President Donald Trump and Governor Gavin Newsom for further information. For UBER Travel Bookings and Reservations for Private Air Travel, First Class Air Travel, Business Class Air Travel, Economy Class Air Travel, Air & Hotel, Cruise, All Inclusive Hotel Travel Vacations and Short-Term Rental Accommodations, Contact, UBER at 866-440-6700. Contact Information Brent Ritz Chairmanlegal@ SOURCE: UBER View the original press release on ACCESS Newswire
Yahoo
20-07-2025
- Business
- Yahoo
How to Make a 3.0% One-Month Yield By Shorting UBER Puts
Last month, I demonstrated in a June 20 Barchart article that investors could short out-of-the-money (OTM) UBER Technologies (UBER) puts and achieve a 2.0% one-month yield. That was proved successful as the short put options expired worthless on Friday. Today, it's possible to make a similar one-month 3.0% yield shorting OTM puts. More News from Barchart The Saturday Spread: Using Science to Pinpoint Empirically Enticing Trades in WMT, OKTA and RCAT Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. UBER closed at $90.59 on Friday, and I had recommended shorting the $80.00 strike price puts expiring July 18 ("How to Make a 2.0% Yield with UBER Over the Next Month"). I showed that UBER was worth at least $95.59. This article will update that price target. The short put play strike was 4.7% below the trading price at the time. The premium received was $1.66; hence, the 2.0% yield (i.e., $ 1.66/$80.00 = 0.02075). Today, it's possible to make almost a 3% yield at a strike price with a similar distance below the trading price. More on that below. First, let's look at why UBER looks cheap here. UBER Stock Price Targets FCF-Based Target. My previous price target was based on UBER Technologies' free cash flow (FCF) margins. For example, in Q1, it made $2.25 billion FCF on $11.533 billion in revenue, or a 19.5% FCF margin. That was higher than the Q4 FCF margin of 14.27%, 18.85% in Q3 2024, and 16.08% in Q2. Stock Analysis shows that over the trailing 12 months (TTM), it generated $7.786 billion FCF on $45.38 billion in revenue, or an FCF margin was 17.16%. That was higher than the prior quarter's TTM FCF margin of 15.68%. So, on balance, it seems reasonable to assume that going forward, UBER could make at least an 18.5% FCF margin. Using analysts' next 12-month (NTM) revenue forecasts, UBER could make at least $10 billion in FCF: 0.185 x $54.36 billion NTM revenue = $10.06 billion NTM FCF Using a 4.5% FCF yield metric (i.e., 22.2x FCF) (its TTM FCF yield is 4.1%), here is how that values UBER stock: $10.06b / 0.045 = $223.6 billion market value That is +18% over Friday's market cap of $189.439 billion. In other words, UBER stock is worth +18.0% more at about $107 per share: 1.18 x $90.59 = $106.90 per share P/E Based Target. Historically, UBER stock has traded at 35.4x forward earnings, according to Morningstar's last 3 years' data (i.e., 55.5x 2023, 18.5x 2024, 32.3x current). In addition, analysts now project 2025 earnings per share (EPS) of $2.86 this year and $3.29 in 2026, or $3.08 over the next 12 months (NTM). Therefore, we can estimate its value: $3.08 NTM EPS x 35.4 avg forward multiple = $109.03 price target That is +20.3% over today's price. Analysts' Price Targets. Yahoo! Finance's analyst survey shows an average price target of $96.68 from 54 analysts, and Barchart's survey has a mean price of $100.35. Moreover, Stock Analysis says 34 analysts have an average $99.42 price target, and says 37 analysts have an average of $105.86. As a result, the average analyst price target from surveys is $100.58 per share, which is +11.0% over Friday's close. Summary Price Targets. The bottom line is that using 3 different methods, UBER stock looks around 16.5% undervalued: FCF-Based Target ……….. $106.90 P/E-Based Target ………… $109.03 Analyst-Based Target ….. $100.58 Average Price Target …… $105.50 per share +16.5% upside As mentioned earlier, one way to play this, to set a lower buy-in price and get paid for this, is to sell short out-of-the-money (OTM) put options. Shorting OTM Puts The August 22 expiry period, just over one month from now, shows that the $86.00 strike price put option, which is 5% below Friday's $90.59 close, has a midpoint premium of $2.53 per put contract. That means a short-seller of these puts (i.e., enter an order to 'Sell to Open' 1 put contract) can make an immediate yield of 2.94% (i.e., $2.53/$86.00 = 0.0294). Moreover, for investors willing to take on more risk, the $87.00 strike price put has a midpoint premium of $3.00, or a 3.45% yield (i.e., $3.00/$87.00 = 0.0345). So, in effect, the investor could use a mix of these two put options to make at least a 3.0% yield over the next month. Moreover, the $86.00 strike price put has a low breakeven point: $86 - $2.53, or $83.47, or -7.9% below Friday's closing price of $90.59. That means that even if UBER stock fell to $86.00 over the next month, the investor's actual investment cost would be just $83.47. Note that there is less than a one-third chance of this happening, as the delta ratio is -31%. That chance is based on historical trading volatility patterns in UBER stock. This also provides a good upside to investors, should it eventually reach the average $105.50 price target: $105.50 / $83.47 breakeven = 1.26 -1 = +26% upside Even if the stock does not fall to $86.00, the investor has a good expected return (ER). If this 2.94% yield can be repeated every 34 days for four and a half months (i.e., 34 x 3 times = 136 days, or 4.5x months): 2.94% x 3 = 8.82% expected return (ER) over 4.5 months The bottom line here is that UBER stock looks deeply undervalued. One way to profitably play this is to sell short out-of-the-money (OTM) puts in nearby expiry periods. On the date of publication, Mark R. Hake, CFA 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. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
20-07-2025
- Business
- CNBC
Top Wall Street analysts are confident about the potential of these 3 stocks
The earnings season is on, and investors are paying attention to how the leading companies are faring. However, tariffs and other challenges remain on the minds of investors. While top Wall Street analysts also watch the quarterly results closely, they generally have a broader focus and assess the company's ability to navigate short-term difficulties and deliver attractive returns over the long term. Here are three stocks favored by the Street's top pros, according to TipRanks, a platform that ranks analysts based on their past performance. First on this week's list is ride-sharing and delivery platform Uber Technologies (UBER). The company is scheduled to announce its second-quarter results on Aug. 6. In a preview note on Uber's Q2 earnings, Evercore analyst Mark Mahaney stated that he expects the company to report a 17% year-over-year growth in gross bookings to $46.8 billion, slightly above the Street's estimate and within the company's guidance. The analyst expects revenue growth of 18%, modestly above the Street's expectations, and EBITDA (earnings before interest, tax, depreciation, and amortization) of $2.09 billion, in line with the consensus estimate. Mahaney's estimates are based on favorable industry checks for consumer demand trends, third-party data checks, and Evercore's non-deal roadshows (NDR) with UBER management. The analyst's expectations are also backed by Evercore's 8th Annual U.S. Ridesharing Survey and insights from its NDR with DoorDash management. Despite the stellar year-to-date rally, Mahaney stated that UBER remains a top pick for Evercore. He attributed the stock's rise to multiple factors, including better-than-expected growth in Mobility and Delivery bookings over the past two quarters and positive key user metrics and the impressive rollout of Waymo in Austin on the Uber network. "Key to our Long Thesis – we believe there will be 'more Austins' – more successful robotaxi partner rollouts for Uber, and not just with Waymo, over the next 12-18 months," said Mahaney and reaffirmed a buy rating on UBER stock with a price forecast of $115. Meanwhile, TipRanks' AI analyst has an "outperform" rating on UBER stock with a price forecast of $108. Mahaney ranks No. 219 among more than 9,800 analysts tracked by TipRanks. His ratings have been profitable 60% of the time, delivering an average return of 15.9%. See Uber Technologies Statistics on TipRanks. We move to Alphabet (GOOGL), the parent company of search engine giant Google. In a Q2 earnings preview of the companies in the internet space, JPMorgan analyst Doug Anmuth reaffirmed a buy rating on GOOGL stock and increased the price forecast to $200 from $195. In comparison, TipRanks' AI analyst has a price target of $199 on GOOGL stock with an "outperform" rating. Anmuth explained that his higher estimates mainly reflect better channel checks and third-party data as well as more favorable forex changes. Anmuth added that his revised price target is based on a multiple of about 20-times his 2026 GAAP earnings per share (EPS) estimate of $9.89. The analyst believes that Alphabet deserves to trade at a premium to the S&P 500, given that it is one of the few companies in this index with a double-digit percent revenue and EPS growth on a very large base. He also highlighted the company's more than 30% GAAP operating income margin. "We believe Alphabet's fundamentals are solid and the company will remain both a driver of and primary beneficiary of an increasingly digital economy & advances in Generative AI," said Anmuth. He highlighted Alphabet's continued focus on innovation. Anmuth sees a healthy runway across Search and YouTube ads, with artificial intelligence (AI) fueling higher return on investment (ROI) and a shift in TV dollars to online channels. Furthermore, he said that Alphabet's non-ad businesses, like Cloud and YouTube subscription services, still have substantial scope to grow. Anmuth also said that the companies within Alphabet's Other Bets division, including Waymo and Verily, provide potential upside. Overall, Anmuth is bullish about Alphabet's ability to innovate around generative AI, control costs and deliver impressive revenue growth. Anmuth ranks No. 56 among more than 9,800 analysts tracked by TipRanks. His ratings have been successful 65% of the time, delivering an average return of 21.6%. See Alphabet Stock News and Insights on TipRanks. Anmuth is also bullish on social media giant Meta Platforms (META) and raised the price target for the stock to $795 from $735 while maintaining a buy rating ahead of the company's Q2 results. In comparison, TipRanks' AI analyst has an "outperform" rating on META stock with a price target of $798. The analyst explained that the upgraded price target is based on about 27-times his 2026 GAAP EPS estimate of $29.53. Anmuth believes that META stock's premium valuation to the S&P 500 is justified, as he has greater confidence in the company's robust top-line growth and ongoing cost efficiencies. "We believe Meta's virtual ownership of the social graph, strong competitive moat, and focus on the user experience position it to become an enduring blue-chip company built for the long term," said Anmuth. The analyst noted Meta Platforms' strength in terms of scale, growth, and profitability, with its extensive reach and engagement continuing to drive network effects. Anmuth also noted the company's targeting abilities that offer huge value to advertisers. Anmuth stated that Meta will invest in the massive growth opportunities offered by the two big tech waves – AI and Metaverse, while also focusing on cost discipline. Despite significant infrastructure investments, the analyst expects Meta Platforms to deliver strong revenue and EPS growth in 2026. He noted Meta's solid track record in delivering returns on higher spending. See Meta Platforms Insider Trading Activity on TipRanks.
