Latest news with #UberTechnologies
Yahoo
7 hours ago
- Business
- Yahoo
Figma IPO: Can the Design Darling Take on Adobe at Scale?
Key Points Adobe tried to buy Figma for $20 billion in 2022, but regulators blocked the deal. The start-up is growing rapidly and delivering a proift. The future looks bright for Figma. 10 stocks we like better than Adobe › Figma (NASDAQ: FIG) is set to go public on July 30. For the design software star, the public offering represents a long and winding path since Adobe's (NASDAQ: ADBE) $20 billion acquisition of the company was blocked in 2023 over regulatory pushback that the deal would suppress competition in the design software industry. After dealing with the setback and offering severance to workers who wanted to quit, Figma has added new artificial intelligence (AI) features and continued to deliver solid growth. On the eve of its initial public offering (IPO), Figma appears to be as strong as ever. The company competes with Adobe in design software, and it may be best known for user interface and user experience (UI/UX) design software, serving companies like Netflix, Uber Technologies, and Alphabet's Google. Figma's singular innovation is that it built design software within web browsers, rather than selling it separately as software, and its web-based applications have helped make its product successful and drive its growth. Adobe recognized the competition from Figma early on, so it's not a surprise the company tried to buy it. It even made earlier offers to acquire it. After the deal fell through, Adobe remains Figma's biggest, and significantly larger, competitor. Can Figma compete with Adobe? Let's take a closer look. Figma is ready for its close-up Targeting a valuation of $18.8 billion, slightly less than what Adobe offered to buy it for three years ago, Figma's IPO seems very reasonably priced. Over the last four quarters, the company reported $821 million in revenue, giving it a price-to-sales valuation of 23. However, that valuation seems justified as Figma is growing rapidly, and is profitable. During that period, revenue is up 46%, and it reported a generally accepted accounting principles (GAAP) operating margin of 17%. It's also highly profitable at the product level with a gross margin of 91% and net dollar retention of 132%, meaning that existing customers increased their spending on the platform by 32% over the last four quarters. By contrast, Adobe is much larger than Figma, with $21.5 billion in revenue in fiscal 2024, but that also works to Figma's advantage as it demonstrates a large market for its service, and room to grow if it can grab market share from Adobe. Figma estimates its addressable market at $33 billion today, which also gives it plenty of room for growth. Adobe vs. Figma: Who's the winner? Figma competes directly with Adobe XD, a product Adobe launched to claw back market share from Figma, but the start-up has generally held its own. According to a survey of comments on platforms like Reddit, designers generally prefer Figma over Adobe XD. Figma's growth rate shows that it's succeeding by adding both new customers and new products. It now has a suite of tools that covers everything from product ideation to shipping the product. Seventy-six percent of Figma's customers now use at least two products, showing a healthy rate of cross-selling and adoption. Investors should expect Figma to continue introducing new products as it expands and evolves, and aims to take market share from Adobe. Is Figma a buy? IPOs are notoriously volatile and difficult to predict, but Figma seems to be well positioned for success. Its valuation has already been validated by Adobe, and at an $18.8 billion market cap the pricing looks reasonable. Figma is also growing fast, and is already profitable on a GAAP basis, separating it from a lot of cloud software companies that have been public for years. If Figma can continue its pace of product innovation and deliver strong growth, the stock looks like a good bet over the long term. Do the experts think Adobe is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Adobe make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,046% vs. just 183% for the S&P — that is beating the market by 863.34%!* Imagine if you were a Stock Advisor member 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!* The 10 stocks that made the cut could produce monster returns in the coming years. 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 Jeremy Bowman has positions in Netflix. The Motley Fool has positions in and recommends Adobe, Alphabet, Netflix, and Uber Technologies. The Motley Fool has a disclosure policy. Figma IPO: Can the Design Darling Take on Adobe at Scale? was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
14 hours ago
- Business
- Yahoo
Piper Sandler Lifts UBER Price Target, Keeps Overweight Rating
Uber Technologies, Inc. (NYSE:UBER) is one of the 12 Most Owned Stocks by Hedge Funds So Far in 2025. On July 24, Piper Sandler increased its price target on Uber Technologies, Inc. (NYSE:UBER) from $95 to $103 while keeping an 'Overweight' rating. The research firm expects the company to report $46.5 billion in Gross Bookings and $2.1 billion in EBITDA in Q2 2025, both in line with broader market projections. A close up view of a hand holding a smartphone, using a ride sharing app. The research firm also raised its forecasts for Uber Technologies, Inc.'s (NYSE:UBER) 2026 Gross Bookings and EBITDA by about 1% each. This indicates growing confidence in the company's long-term performance. Piper Sandler highlighted consumer resilience as a positive sign for the company. The firm also noted that foreign exchange rates are serving as a tailwind for Uber Technologies, Inc. (NYSE:UBER). Additionally, the research firm noted Uber Technologies, Inc.'s (NYSE:UBER) efforts focused on affordability, which could help the company attract and retain customers in competitive markets. Uber Technologies, Inc. (NYSE:UBER) is a global transportation technology company focused on ride-hailing services, courier services, food delivery, and freight transport. While we acknowledge the potential of UBER as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best American Semiconductor Stocks to Buy Now and 11 Best Fintech Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. 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
16 hours 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
19 hours 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
Globe and Mail
a day ago
- Business
- Globe and Mail
Uber: A Strong Contender in the Ride-Sharing Market
Explore the exciting world of Uber (NYSE: UBER) with our contributing expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities! *Stock prices used were the prices of Jun. 18, 2025. The video was published on Jul. 29, 2025. Should you invest $1,000 in Uber Technologies right now? Before you buy stock in Uber Technologies, consider this: Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks 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
