Uber (NYSE: UBER) has had its fair share of ups and downs lately. After peaking last October, the stock took a hit on the heels of Tesla’s flashy Cybercab announcement, a move that spooked investors and led to a sustained selloff into year-end.
While the stock has been slowly clawing its way back, it’s still down more than 5% over the past 12 months. But the company’s fundamentals tell a very different story, one of strong revenue growth, rising earnings, and a dominant market position.
So, is Uber a buy, sell, or hold right now? Let’s dig in.
Key Points
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Uber’s revenue rose 18% to $43.98B and EPS jumped to $4.56 in 2024, yet the stock remains down 5% over the past year.
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Trading at just 15.9x earnings, Uber looks cheap. Analysts are bullish with a 23% upside target and no Sell ratings.
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Tesla’s autonomous taxi faces delays and red tape. Meanwhile, Uber is already testing AVs and has major room to grow.
Revenues Are Up, Profits Are Surging
Despite the dip in share price, Uber’s business has been firing on all cylinders.
For the 12 months ending in Q4 2024, Uber pulled in $43.98 billion in revenue, an 18% jump from the prior year. Even more impressive, earnings per share hit $4.56 for the year, up from just $0.87 in 2023. In Q4 alone, Uber posted EPS of $3.21.
So why the hesitation from investors?
One reason could be Uber’s own guidance on bookings growth. Gross bookings rose 18% year-over-year in Q4 to $44.2 billion, but the company forecast a slight dip for Q1, landing somewhere between $42.0 billion and $43.5 billion. That still reflects 17–21% growth from Q1 2024, but it suggests momentum may be slowing slightly.
Still, a small deceleration doesn’t mean Uber’s growth story is falling apart. Far from it.
The Valuation Looks Attractive
After a rocky year for the stock, Uber’s valuation is beginning to look appealing.
Its price-to-earnings ratio now sits at just 15.9, a steep discount compared to where it traded in early 2024, despite the fact that earnings have surged.
Sure, its price-to-sales (3.5) and price-to-book (7.0) ratios are a bit on the high side, but the earnings multiple suggests investors may be underestimating Uber’s profit potential.
Wall Street seems to agree. Analysts remain overwhelmingly bullish on the stock, with 33 Buy ratings, 8 Holds, and zero Sells.
Is Tesla’s Cybercab a Real Threat?
Tesla’s upcoming autonomous taxi, the Cybercab, has caused a stir but is it a real problem for Uber? Probably not anytime soon.
For starters, Tesla says production will begin before 2027, which likely means at best late 2026. And if Tesla’s history is any guide, that timeline may prove optimistic, especially for self-driving technology.
Even assuming Tesla hits its production targets, the regulatory environment could prove far more challenging. The National Highway Traffic Safety Administration currently caps the deployment of vehicles without human controls at just 2,500 units per year, a number that makes scaling any real business nearly impossible.
On top of that, state-level restrictions could add further delays. All told, a mass rollout of autonomous taxis could be years away.
Meanwhile, Uber isn’t sitting still. The company has teamed up with Waymo to launch its own self-driving service and has already begun offering autonomous rides in Austin, Texas. That gives Uber a real-world head start Tesla doesn’t yet have.
Still Room to Grow
Uber’s growth story isn’t over. Not even close.
Despite the company’s massive presence, nearly 75% of Americans still don’t use rideshare services. That leaves plenty of runway for expansion.
Looking ahead, analysts expect Uber’s EPS to grow at an annualized rate of 30.5% over the next 3–5 years. While a weaker economy could put a dent in those numbers, Uber’s asset-light, service-based model gives it resilience that many goods-focused businesses lack.
It’s also relatively insulated from the kinds of tariff pressures currently weighing on the broader market. While rising consumer costs could curb ride demand slightly, it’s unlikely to derail the core business.
Is Uber a Buy?
Most signs point to yes.
The average analyst price target is $88.78, nearly 23% above the current share price. Uber has a strong grip on the U.S. rideshare market, real momentum in earnings growth, and a valuation that leaves room for upside.
Sure, the Cybercab sounds exciting, but it’s still theoretical. Uber, on the other hand, is already delivering both for customers and increasingly, for shareholders.
For long-term investors, the current dip in Uber’s stock could be an opportunity to hop in before the next leg up.