Is Uber stock a good investment?

Uber has a low valuation but lots of insider selling Uber's tighter financial discipline, improving scale, and rising profits should silence the bears who claimed its business model was unsustainable. Analysts expect its revenue and adjusted EBITDA to grow 18% and 123%, respectively, this year.



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Stock Price Forecast The 38 analysts offering 12-month price forecasts for Uber Technologies Inc have a median target of 58.00, with a high estimate of 75.00 and a low estimate of 45.00. The median estimate represents a +24.65% increase from the last price of 46.53.

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While Uber stock has performed well for investors thus far in 2023, there are good reasons the market has sent its share price higher. Even today, the stock sits well below its all-time high despite a much clearer outlook for future profits than just a couple of years ago.

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Uber stock price stood at $46.51 According to the latest long-term forecast, Uber price will hit $55 by the end of 2023 and then $60 by the middle of 2024. Uber will rise to $75 within the year of 2025, $90 in 2026, $100 in 2027, $110 in 2028, $125 in 2030 and $150 in 2034.

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Uber's take rate and margins are rising Those rising take rates, along with its recent cost-cutting measures, including thousands of layoffs since its IPO, are boosting Uber's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and operating margins.

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Uber posted a profit of $394 million during the second quarter, compared with a loss of $2.60 billion a year earlier. That came in better than the $18 million loss that analysts polled by FactSet had expected and was driven predominantly by its operating profit, which totaled $326 million.

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Fair Value Estimate for Uber With its 4-star rating, we believe Uber's stock is undervalued compared with our long-term fair value estimate.

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Average Price Target Based on 31 Wall Street analysts offering 12 month price targets for Uber Technologies in the last 3 months. The average price target is $58.93 with a high forecast of $68.00 and a low forecast of $52.00. The average price target represents a 35.97% change from the last price of $43.34.

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Does Uber pay dividends on its stock? We do not currently pay dividends on our stock.

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Wall Street expects Uber to continue recording an operating profit for the rest of the year. Uber's revenue rose 14% to $9.23 billion, a slight miss from what analysts had expected. Its gross bookings—or the total value of transactions on its app—grew 16% to $33.60 billion, beating expectations.

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Financial Highlights for Second Quarter 2023 Gross Bookings grew 16% year-over-year (“YoY”) to $33.6 billion, or 18% on a constant currency basis, with Mobility Gross Bookings of $16.7 billion (+25% YoY or +28% YoY constant currency) and Delivery Gross Bookings of $15.6 billion (+12% YoY or +14% YoY constant currency).

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Before its highly anticipated IPO in 2019, Uber was valued at as much as $120 billion by investors. But after going public on May 9, 2019, it made history with the biggest first-day dollar loss in U.S. history. Since then, Uber has worked on becoming profitable, in part through the acquisition of other companies.

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What Is Uber Technologies's Debt? The chart below, which you can click on for greater detail, shows that Uber Technologies had US$9.43b in debt in March 2023; about the same as the year before. However, it also had US$4.17b in cash, and so its net debt is US$5.27b.

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The top shareholders of Uber are Dara Khosrowshahi, Tony West, Nelson J. Chai, SB Investment Advisers (UK) Ltd., Morgan Stanley, and FMR LLC. Below, we take a closer look at the top shareholders of Uber.

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Uber's advantages include door-to-door convenience, safety, and reliable quality. Uber's disadvantages include its surge pricing and the negative effects of replacing steady jobs with gig work.

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The valuation is compelling The company's current market cap is $95 billion, implying it needs to 10x from here to reach a trillion. Nonetheless, Wall Street seems to be buying into Uber's investment thesis. JPMorgan, in particular, recently listed Uber as one of its top picks.

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Uber's stock growth is largely due to the demise of Lyft as a competitor, says DPCM's Emil Michael. Emil Michael, former Uber chief business officer, joins 'Tech Check' to talk the ride share giant's recent stock pop, competition in the space and more.

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Uber Driver Shortage. The COVID-19 pandemic and even carjackings have led many drivers to leave the gig economy and drive for Uber, which has led to a driver shortage for Uber, which means you might have trouble getting a ride through the Uber app.

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