Core Viewpoint - Uber Technologies and DoorDash are the leading players in the U.S. food delivery market, with DoorDash holding a significant market share, but Uber's diversified revenue streams and growth potential in ridesharing and autonomous driving present compelling investment opportunities [1][2]. Company Analysis Uber Technologies - Uber's revenue in 2024 reached $44 billion, growing by 18% year-over-year, with ridesharing accounting for 57% of its revenue and holding a 76% market share compared to Lyft's 24% [5][3]. - The company is exploring autonomous driving through partnerships with Waymo and GM's Cruise, which could enhance its value proposition [4]. - Uber's operating income increased from $1.1 billion in 2023 to $2.8 billion in 2024, and its forward P/E ratio of 22 suggests it is undervalued, making it an attractive buy [5][10]. DoorDash - DoorDash commands 67% of the food delivery market, significantly ahead of Uber Eats at 25%, and has expanded its services to include deliveries from retailers [6]. - The company's revenue grew by 24% to $10.7 billion in 2024, and it achieved a net income of $123 million, recovering from a $558 million loss in 2023 [7]. - Despite a modest operating loss in 2024, DoorDash's forward P/E ratio of 39 reflects its rapid growth and recent profitability, which may attract investors [8]. Investment Considerations - Both Uber and DoorDash are expected to outperform the market, but Uber may have a growth edge due to its leadership in mobility and potential in autonomous driving [9]. - Uber's lower forward P/E ratio of 23 compared to DoorDash's 39 presents a more attractive valuation for investors [10].

Core Insights - Uber Technologies (UBER) stock closed at $72.86, with a slight increase of +0.15% compared to the previous day, underperforming the S&P 500's gain of 0.55% [1] - Over the past month, UBER shares have decreased by 4.29%, which is better than the Computer and Technology sector's decline of 8.88% and the S&P 500's drop of 6.22% [1] Earnings Forecast - Analysts predict Uber will report an EPS of $0.51, representing a significant growth of 259.38% year-over-year [2] - Revenue is expected to reach $11.61 billion, indicating a 14.58% increase compared to the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $2.54 per share, reflecting a decrease of 44.3% from the previous year, while revenue is estimated at $50.58 billion, showing a growth of 15.02% [3] Analyst Sentiment - Recent changes in analyst estimates for Uber suggest a positive outlook on the company's business operations and profit generation capabilities [4] - Upward revisions in estimates are often correlated with future stock price performance [5] Zacks Rank and Performance - Uber currently holds a Zacks Rank of 2 (Buy), with the consensus EPS estimate having increased by 0.12% over the last 30 days [6] - The Zacks Rank system has a strong historical performance, with 1 ranked stocks yielding an average annual return of +25% since 1988 [6] Valuation Metrics - Uber's Forward P/E ratio stands at 28.68, which is higher than the industry's Forward P/E of 21.95 [7] - The company has a PEG ratio of 0.8, compared to the Internet - Services industry's average PEG ratio of 1.26 [7] Industry Context - The Internet - Services industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 138, placing it in the bottom 46% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - Uber Technologies has demonstrated resilience in the stock market, achieving a 23% year-to-date gain while the S&P 500 index has declined by approximately 3.5% in 2025, indicating strong demand and accelerating profitability [1] Group 1: Strong Platform Demand - Uber's monthly active platform consumers (MAPCs) have surpassed 170 million, more than doubling from 80 million in 2018 [3] - In 2024, Uber facilitated 11.3 billion trips globally, generating $44 billion in net revenue, reflecting an 18% year-over-year increase [3] - The company has diversified its services beyond ride-sharing, successfully introducing new transportation options and leveraging its technology for food delivery and freight solutions [4][5] Group 2: Financial Performance - Uber's earnings per share (EPS) reached $4.56 in 2024, a significant increase from $0.87 in 2023, while free cash flow rose to $6.9 billion, up 105% [6] - The company has announced a $7 billion share repurchase authorization, indicating confidence in its financial outlook and ability to return cash to shareholders [7] Group 3: Autonomous Vehicle Positioning - Uber is strategically positioned to lead in the autonomous vehicle (AV) market, despite challenges in mass-scale commercialization [8] - The company has partnered with AV leaders like Waymo and WeRide, integrating autonomous rides into its network and targeting a projected $1 trillion market over the next decade [9] Group 4: Valuation - Uber shares are trading at 23 times the consensus 2025 EPS estimate, which is considered attractive for a consumer-focused tech company with double-digit growth [10] - Compared to smaller rivals like Lyft, which trades at a forward P/E of 12, Uber's premium valuation is justified by its stronger brand recognition and diversified offerings [11] Final Thoughts - The outlook for Uber remains positive, with expectations for the stock price to reach its October 2024 all-time high of $87 within the next year, supported by strong growth and recurring profitability [13]

Core Viewpoint - The proposed legislation aims to eliminate taxes on workers' tips, with support from Republican lawmakers and companies like Uber and DoorDash, who seek to include independent contractors in this tax relief initiative [1][2]. Group 1: Legislative Proposal - The legislation, introduced by Sen. Ted Cruz and Rep. Vern Buchanan, primarily targets restaurant and casino workers, but does not initially cover independent contractors working for companies like Uber [2]. - The proposal includes a $25,000 income-tax deduction limit for tips, excluding individuals earning over $160,000 annually, and requires employers to report tips and wages for eligibility [3]. Group 2: Company Perspectives - Uber's head of federal affairs emphasized the importance of including Uber drivers in the legislation, arguing that they play a significant role in the tipping economy [3]. - DoorDash's global head of public policy also advocated for the inclusion of Dashers, asserting that tips should be treated equally regardless of the worker's employment status [3]. Group 3: Economic Implications - Tax experts have raised concerns that the no-tax-on-tips proposal could create inequality among lower-wage workers who do not receive tips [4]. - The shift towards digital payouts may accelerate as a result of the proposed tax changes, potentially easing the burdens associated with cash payments and income reporting [5][6].

This company could prove essential to the proliferation of self-driving cars on our streets. Autonomous vehicles are getting easier to find on the streets in several major cities in the United States. As a handful of companies are testing their self-driving cars in select cities, Alphabet's (GOOG -4.89%) (GOOGL -4.83%) Waymo has pulled ahead of the pack with a commercial service. The company said it completed 200,000 rides per week as of February, doubling in just six months. Tesla (TSLA -3.42%) could be ne ...

Core Viewpoint - Uber is positioned as a leading player in the ride-sharing and food delivery market, with significant growth potential and minimal competition in North America [3][4][6]. Group 1: Market Position and Growth - Uber has established a virtual monopoly in the North American ride-sharing market, significantly outpacing competitors like Lyft [3]. - Gross bookings for Uber's ride-sharing platform grew 24% year over year to $22.8 billion, with $6.9 billion converting to revenue [4]. - The delivery segment also showed strong performance, with bookings growing 20% year over year to $20.1 billion [5]. - Combined gross bookings across ride-sharing and delivery reached $44.2 billion in the last quarter of the previous year, indicating robust growth prospects [6]. Group 2: Future Opportunities - The emergence of self-driving vehicle technology, while a potential threat, may also enhance Uber's business by filling demand gaps through partnerships with companies like Waymo [7][9]. - Uber anticipates that autonomous vehicles could unlock a $1 trillion market in the U.S., which could lead to sustained growth in bookings [8]. Group 3: Financial Outlook - Uber's current market cap stands at $157 billion, with an operating income of $2.77 billion last year, suggesting significant earnings potential [10]. - Management projects gross bookings to grow at a mid-teens annual rate through 2026, with operating margins expected to expand from 6% to 20% or higher in the long term [11]. - Assuming a 15% annual growth rate, Uber's revenue could reach $67 billion in three years, translating to an operating income of $13.4 billion, which is five times the current level [12].

Uber has teamed with Petco to offer pet owners home delivery via Uber Eats.The partnership, announced Thursday (March 27), makes all Petco locations in the contiguous United States available on Uber Eats for deliveries of pet food, toys, treats and other items.“People are more connected and committed to their pets today than ever before,” Steve Janowiak, Petco’s vice president of digital, said in a news release. “We’re thrilled to partner with Uber Eats and give pet parents another easy way to get the trust ...

Billionaire Bill Ackman is the CEO of Pershing Square Capital Management, a hedge fund that returned 210% in the past five years. Comparatively, the S&P 500 (^GSPC -1.12%) advanced 101% during the same period. Those market-beating results make Ackman a good source of inspiration for individual investors.Since January, Ackman has bought more than 30 million shares in a robotaxi stock that has soared 145% in the past two years. I'm not referring to Tesla, though the company also plans to launch an autonomous ...

Uber Technologies, Inc. UBER and Sally Beauty Holdings, Inc. SBH have launched a partnership, marking Uber Eats’ inaugural national beauty collaboration.This alliance allows customers to access Sally Beauty’s wide range of professional hair care and color products directly through Uber Eats, providing beauty lovers with the convenience of having their preferred items delivered right to their doorstep.Customers can now easily browse and purchase a range of beauty essentials, including hair care for all types ...

Core Viewpoint - Uber has shown significant growth over the past five years, with a 251% increase in stock value, but has faced volatility and challenges, particularly during the COVID-19 pandemic [1] Group 1: Business Recovery and Growth - The COVID-19 pandemic negatively impacted Uber's trip count, gross bookings, and revenue in 2020, with declines in double digits compared to 2019 [1] - Despite the pandemic, Uber's delivery segment thrived as consumers turned to food delivery services, leading to higher gross bookings in this division compared to mobility in the last three quarters of 2020 [2] - By the end of 2024, Uber reported $163 billion in gross bookings and $44 billion in revenue, significantly higher than four years prior, with 171 million monthly active platform consumers, up from 93 million at the end of 2020 [3] Group 2: Profitability and Future Expectations - Uber transitioned from a $4.9 billion operating loss in 2020 to a $2.8 billion operating income in 2024, indicating strong profitability [4] - For the first quarter of 2025, management anticipates a 17% year-over-year increase in gross bookings, with a full-year expectation of 15% growth [5] Group 3: Competitive Position and Technology - The potential threat of autonomous driving technology poses a question for investors, as it could lower costs for riders and increase competition from new ride-hailing services [6] - Uber's strong consumer relationships and ability to aggregate demand and supply provide a competitive advantage, making it difficult for new entrants to challenge its brand and network effect [7] - Uber is likely to remain a key partner for companies developing self-driving technology, already collaborating with Alphabet's Waymo and Nvidia [8] Group 4: Investment Considerations - Uber's stock is currently trading at a forward P/E ratio of 15.8, which is lower than the Nasdaq 100's 24.5, suggesting it may be undervalued [9] - Billionaire hedge fund manager Bill Ackman has invested in Uber, projecting earnings growth of over 30% per year in the coming years, which could boost investor confidence [10] - Overall, Uber appears well-positioned to outperform the market in the next five years, supported by solid fundamentals and attractive valuation [11][12]