Why Uber Technologies Stock Was a Dog in December

Autonomous Vehicle Development Impact - General Motors announced it will no longer fund the development of a specialized robotaxi under its Cruise division, citing the significant time and resources required to scale the business and increasing competition in the robotaxi market [2] - This decision led to a broader realignment within General Motors, merging the Cruise and technical divisions to focus on advancing the Super Cruise assisted-driving feature [2] - The news negatively impacted Uber's stock, which lost over 16% of its value in December, as the company is eager to adopt autonomous-driving technology to reduce reliance on human drivers [1][3] Market Reaction and Competition - General Motors' exit from the robotaxi market narrows competition in a future high-potential segment, as its mass-market vehicle production could have led to competitively priced robotaxis [4] - Despite the sell-off, the market's reaction may be an overreaction, as robotaxis are still in development and future competition could keep prices low [5] Uber's Business Diversification and Market Position - Uber faced additional pressure from a Bernstein SocGen analysis, which noted declining growth rates in the U.S. rideshare market and moved Uber down its stock preference list, though maintaining a buy recommendation and $95 price target [6][7] - Uber's management has successfully diversified the business, reducing reliance on the rideshare segment, and the company remains a key player in the industry [8]