Latest news with #UberTechnologies
Yahoo
11 hours ago
- Business
- Yahoo
Where Will Uber Technologies Stock Be in 5 Years?
Uber's stock has nearly doubled since its public debut six years ago. It overcame some difficult competitive, macro, and regulatory challenges. Its stock looks reasonably valued relative to its long-term growth potential. 10 stocks we like better than Uber Technologies › Uber (NYSE: UBER), the world's largest ride-hailing service provider, went public six years ago at $45 per share. Its stock slumped below its initial public offering (IPO) price in its first four years as the pandemic throttled its growth and rising rates squeezed its valuations, but it now trades at about $84. Uber's business recovered as its ride-hailing and delivery services continued to expand; it divested its money-losing overseas and autonomous driving units; and it expanded its sticky subscription platform. Will its stock soar even higher over the next five years? Uber is primarily known for its ride-hailing and food delivery services, but it also offers business-oriented services along with bike and scooter rentals. It operates in about 15,000 cities across 70 countries, generating over half of its revenue in the U.S. and Canada. From 2020 to 2024, Uber's number of year-end monthly active platform consumers (MAPCs) rose from 93 million to a record high of 171 million. That figure dipped sequentially to 170 million in the first quarter of 2025, but that still represented 14% growth from a year earlier. Its growth in trips, gross bookings, and revenue stalled out in 2020 as the pandemic forced more people to stay at home. However, it recovered quickly over the following four years as it stayed ahead of its smaller competitors, rolled out new enterprise, healthcare, and teen-oriented services, and expanded its Uber One subscriptions. Metric 2020 2021 2022 2023 2024 Q1 2025 Trips Growth (YOY) (27%) 27% 19% 24% 19% 18% Gross Bookings Growth (YOY) (11%) 56% 19% 19% 18% 14% Revenue Growth (YOY) (14%) 57% 49% 17% 18% 14% Data source: Uber Technologies. YOY = Year over year. Uber One's total number of subscribers rose 60% to 30 million at the end of 2024. The stickiness of that expanding ecosystem boosted its pricing power and take rate (the percentage of each booking it retains as revenue) throughout 2024. Lyft, which operates in fewer markets than Uber, served 44 million annual active customers who used its ride-hailing, scooter, and bike rental services at least once during the year. It had 24.2 million quarterly active riders in the first quarter of 2025. Uber's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also turned positive in 2022 as it divested its unprofitable segments, pruned its workforce, and trimmed its other expenses. It also turned profitable on a generally accepted accounting principles (GAAP) basis in 2023. Its adjusted EBITDA nearly quadrupled from 2022 to 2024, while its GAAP net income increased more than fivefold (driven by a one-time tax benefit and the revaluation of its equity investments) from 2023 to 2024. Uber controls 76% of the U.S. ride-hailing market, according to IncRev. Global Growth Insights estimates that Uber controls 28% of the global market, while its closest competitor, China's Didi -- which Uber also owns a stake in -- holds a 21% share. According to Mordor Intelligence, the global ride-hailing market could grow at a CAGR of 9.6% from 2025 to 2030. Grand View Research expects the global food delivery market to expand at a compound annual growth rate (CAGR) of 9.4% during those five years. Based on those estimates, Uber could grow its revenue and adjusted EBITDA at a CAGR of 10% over the following five years. If that happens, its revenue will rise from an estimated $50.6 billion in 2025 to $81.5 billion in 2030. Its adjusted EBITDA would increase from an estimated $8.6 billion this year to $13.9 billion. With an enterprise value (EV) of $173.6 billion, Uber looks reasonably valued at 20 times this year's adjusted EBITDA. It still faces competitive and regulatory challenges in certain markets, but its brand recognition and economies of scale should fuel its long-term growth. If Uber maintains that same EV/EBITDA ratio, its valuation and stock price could rise about 60% over the next five years. That would be a solid gain that would keep it ahead of the S&P 500, which has delivered an average annual return of about 10% since its inception, and make it a great long-term play on the ride-hailing and delivery markets. 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool has a disclosure policy. Where Will Uber Technologies Stock Be in 5 Years? was originally published by The Motley Fool 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
14 hours ago
- Business
- Yahoo
Billionaire Bill Ackman Is Loading Up on Uber Technologies Stock. Should You?
Ackman's hedge fund bought 30.3 million shares of Uber in Q1. The billionaire likes Uber's business, management, and valuation. Uber could have multiple growth opportunities, but it also faces major uncertainties because of increasing competition. 10 stocks we like better than Uber Technologies › Bill Ackman is highly selective about which stocks he buys. His Pershing Square Capital Management hedge fund currently owns only 12 stocks. And two of those are different classes of shares for the same company -- Google parent Alphabet. Not too long ago, Alphabet ranked as Ackman's favorite investment. That's no longer the case. The billionaire hedge fund manager is now loading up on Uber Technologies (NYSE: UBER). Ackman revealed in a post on X (formerly Twitter) on Feb. 7, 2025, that Pershing Square began buying shares of Uber in January 2025. He stated at the time that the hedge fund owned 30.3 million shares. That's the same number of Uber shares that Pershing Square disclosed in its 13-F regulatory filing for the first quarter of 2025. The purchase catapulted Uber into the top spot among Pershing Square's holdings. The stock now makes up 18.5% of the hedge fund's portfolio, edging out Brookfield Corporation at 18.01%. As of March 31, 2025, Pershing Square's stake in Uber was valued at $2.21 billion. This was the first time for Pershing Square to accumulate a position in Uber. However, it wasn't Ackman's first investment in the transportation company. The billionaire noted in his X post that he was "a day-one investor in the company through a small investment in a venture fund." Sometimes, when Ackman initiates a new position in a stock, we can only guess why he likes it. But not with Uber. He explained exactly why he bought the stock in his social media post earlier this year. For one thing, Ackman is very familiar with Uber's business. He said that he has "been a long-term customer." Actor, producer, and director Edward Norton was an early fan of Uber. He showed the Uber app to Ackman. Both men decided to become ground-floor investors in what was then a start-up company. Ackman is also betting on the jockey to some extent. He noted in his X post that "Uber has suffered from erratic management" in the past. However, he believes that current CEO Dara Khosrowshahi "has done a superb job in transforming the company into a highly profitable and cash-generative growth machine." The billionaire hedge fund manager also views Uber as attractively valued (or at least did earlier this year). Ackman said, "Remarkably, it can still be purchased at a massive discount to its intrinsic value." However, Uber isn't as cheap as it was when Pershing Square was scooping up shares in the first quarter. The stock has jumped close to 12% since Ackman's X post on Feb. 7. Most Wall Street analysts seem to agree with Ackman's bullish view on Uber. Of the 54 analysts surveyed by LSEG recently, 13 rated the stock as a strong buy. Another 31 analysts rated Uber as a buy. The remaining 10 analysts recommended holding the stock. The average 12-month price target for Uber reflected an upside potential of roughly 15%. I think Ackman and Wall Street could be right about Uber. The company continues to deliver strong revenue and earnings growth along with impressive free cash flow. It has multiple paths to growth, including autonomous ride-hailing services, food delivery via Uber Eats, and its Uber Freight transportation and logistics services. However, the uncertainties Uber faces make me hesitant to jump aboard the bandwagon at this point. First, the company has stiff competition from Lyft in the U.S., Bolt in Europe, and Didi in Latin America. Second, autonomous ride-hailing could present both an opportunity and a threat to Uber. If Tesla is successful with its robotaxi launch, the company might gain market share at Uber's expense. Ackman believes that Uber is a bargain. But the stock trades at a forward earnings multiple of 30.6. For Uber to be as attractively valued as Ackman thinks, the company will have to deliver exceptionally strong growth over the coming years. With the unknowns related to increasing competition, I'm not confident that it will be able to do so. 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Keith Speights has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Brookfield, Brookfield Corporation, Tesla, and Uber Technologies. The Motley Fool has a disclosure policy. Billionaire Bill Ackman Is Loading Up on Uber Technologies Stock. Should You? was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
Uber delivery business head departs; insider Macdonald appointed COO
(Reuters) -Uber Technologies said on Monday the head of its delivery business, Pierre-Dimitri Gore-Coty, is leaving the company after nearly 13 years. As senior vice president of Uber's delivery unit, Gore-Coty oversaw the company's Uber Eats business as well as grocery and other on-demand delivery offerings, and is credited with steering the division through the COVID-19 pandemic. Uber also announced it has named Andrew Macdonald as its chief operating officer, reinstating the role almost six years after it was eliminated in a leadership overhaul in 2019. Macdonald, who has been with Uber since 2012 serving in several leadership roles, will now be responsible for Uber's mobility, delivery and autonomous businesses. He will also oversee cross-platform functions such as membership and customer support. "This is a natural next step in our evolution as a company, as we drive growth by increasing engagement across our entire platform," Uber CEO Dara Khosrowshahi said of Macdonald's appointment. The moves, effective immediately, come as Uber has been trying to expand its business portfolio to drive growth amid signs of saturation in its mainstay North American business. Uber's delivery business has also been facing stiff competition from rivals such as DoorDash. Last month, Uber signed a $700 million deal to acquire a majority stake of 85% in Turkish food and grocery delivery platform Trendyol Go. 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
3 days ago
- Business
- Yahoo
Prediction: Lyft Stock Could Double in the Next 3 Years
Lyft's business has improved significantly over the last three years. The ride-share company is expanding into Europe with its recently announced acquisition of FreeNow. It continues to add new features like Lyft Silver. 10 stocks we like better than Lyft › Lyft (NASDAQ: LYFT) has had a tough time on the public markets. Share prices of the ridesharing company, which has long been in the shadow of the larger Uber Technologies (NYSE: UBER), are down 77% since its IPO in 2019. Both ridesharing stocks were overpriced when they went public, and both tumbled when the pandemic started, but since then, their performances have diverged. Uber stock has soared as the company has brought costs under control and delivered steady growth, reinforcing its competitive advantages. Based on its weak stock performance, you might expect to hear that Lyft lagged behind Uber in growth, but that isn't the case. Its revenue growth has been faster than Uber's over the last year. Lyft has now reported 16 straight quarters of double-digit percentage gross bookings growth. It made strides on the bottom line as well. Last year, it reported a generally accepted accounting principles (GAAP) profit for the first time. In 2025's first quarter, Lyft reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $106.5 million, which was nearly double what it booked a year before. Lyft also reported free cash flow over the last four quarters of $919.9 million due in part to a large increase in insurance reserves. With Lyft's market cap at less than $7 billion, the stock trades for less than 8 times trailing free cash flow. That's one good reason to bet that Lyft can double over the next three years. Let's take a look at a couple of others. Unlike Uber, Lyft has historically only operated in North America, but the company made a big move in April, paying $200 million to acquire FreeNow, a ride-share platform in Europe that was owned by BMW and Mercedes-Benz. The move essentially doubles Lyft's addressable market by giving it exposure to nine countries and more than 150 cities. The deal, which is expected to close in the second half of the year, should increase the company's annualized gross bookings by about $1 billion. That's less than 10% of Lyft's current gross bookings, but the growth opportunity is what's most valuable here. Additionally, FreeNow's revenue increased 13% in 2024, and the operation has reached break-even. FreeNow will continue to operate under its own brand, but Lyft plans to roll out new benefits for riders and drivers and integrate the apps so that riders can use either one in North America or Europe. Lyft also continues to improve its service with new features and innovations. For example, it just rolled out Lyft Silver, a feature directed at older riders that makes the app easier to use and makes customer service more readily available. The goal is to more effectively appeal to a market that's soon to reach 70 million Americans. Currently, the over-65 demographic makes up just 5% of Lyft rides. The company also introduced Price Lock, a feature that allows customers to lock in their prices for regular commutes for a small fee, rather than risking a jump from surge pricing, or "prime time" pricing, as Lyft calls it. And it rolled out a new AI earnings assistant for drivers that's designed to help them maximize the value of their time on the road. Overall, Lyft has growth opportunities thanks to the acquisition of Freeform and its track record of innovation, which has allowed it to take market share from Uber at times. The stock is also trading at an attractive price-to-sales ratio of just above 1, and its low free cash flow ratio is setting it up to buy back shares, which could give a boost to the stock price over the long term. If the company can maintain its growth rate and improve its profitability, doubling in the next three years seems achievable for the stock. Before you buy stock in Lyft, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lyft 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 $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool recommends Bayerische Motoren Werke Aktiengesellschaft. The Motley Fool has a disclosure policy. Prediction: Lyft Stock Could Double in the Next 3 Years was originally published by The Motley Fool 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
4 days ago
- Business
- Yahoo
Why Shares of Uber Are Sinking Today (Hint: It Has to do With Tesla)
Bloomberg is reporting that Tesla's robotaxis will soon debut in Austin. A Wall Street analyst is concerned about what this could mean for Uber. Uber has positioned itself as a partner for the autonomous driving revolution. 10 stocks we like better than Uber Technologies › Shares of the ride-hailing giant Uber (NYSE: UBER) traded roughly 4.5% lower in the final half-hour of trading today after a Wall Street analyst cited a potential threat to Uber's business model and long-term strategy. In a research note, Wedbush analyst Scott Devitt maintained a "neutral" rating on Uber and an $85 price target but noted that Tesla's soon-to-launch robotaxis present a threat to the company's long-term vision. The news comes after Bloomberg reported that Tesla plans to launch robotaxis in Austin on June 12. In the note, Devitt said that a fully autonomous ride-hailing fleet could significantly disrupt Uber's human-powered fleet. Tesla's CEO Elon Musk has also indicated that Tesla may try and set up its own ride-hailing network rather than partnering with an existing player. Meanwhile, Uber has positioned itself as the strategic partner for autonomous vehicle companies, having already formed partnerships with Waymo and Pony AI, among others. Uber believes that its massive fleet, operational platform, and regulatory expertise make it an ideal partner for self-driving companies looking to scale. While the market seems to be taking Wedbush's concerns seriously, I think it's still too early to say that Uber is in trouble. It will take Tesla time to scale, and it could still take awhile for autonomous ride-sharing to gain widespread traction. Plus, Musk and Tesla have never run a ride-hailing fleet before. They may still end up partnering with Uber. Uber has transformed itself financially, becoming profitable and generating significant free cash flow. I also think there will likely be more than one winner in the autonomous space. Interested investors can buy the dip here. 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 $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla and Uber Technologies. The Motley Fool has a disclosure policy. Why Shares of Uber Are Sinking Today (Hint: It Has to do With Tesla) was originally published by The Motley Fool Sign in to access your portfolio
