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Is Uber Stock a Buy Following the Robotaxi Push in Dubai With WeRide?
UBERUber(UBER) ZACKS·2025-04-07 18:35

Core Insights - Uber Technologies has partnered with WeRide to introduce self-driving cars in Dubai, aiming to integrate WeRide's technology into Uber's platform [1][2] - The partnership aligns with Dubai's goal of making 25% of all city trips autonomous by 2030, following a similar initiative in Abu Dhabi [2] - The global robotaxi market is projected to reach 45.7billionby2030,growingataCAGRof91.845.7 billion by 2030, growing at a CAGR of 91.8% from 2025 to 2034, indicating significant market potential [3] Company Performance - Uber has achieved a 7.2% year-to-date gain, outperforming the S&P 500 and rival Lyft, which are both down in double digits [4] - Over the past year, Uber shares have consistently outperformed Lyft, reflecting strong market confidence [7] - Uber has surpassed earnings estimates in three of the last four quarters, with an average beat of 133.5% [9] Financial Strategy - In 2024, Uber generated a record 6.9 billion in free cash flow and an adjusted EBITDA of 6.5billion,indicatingrobustfinancialhealth[10]−Thecompanyannounceda6.5 billion, indicating robust financial health [10] - The company announced a 1.5 billion accelerated stock buyback program, part of a larger 7billionbuybackinitiative,signalingconfidenceinitsbusinessstrategy[10]−Uber′sdiversificationintofooddeliveryandfreighthasstrengtheneditsmarketpositionandreducedrisks[11]GrowthProjections−InQ42024,Uber′stotalgrossbookingsincreasedby217 billion buyback initiative, signaling confidence in its business strategy [10] - Uber's diversification into food delivery and freight has strengthened its market position and reduced risks [11] Growth Projections - In Q4 2024, Uber's total gross bookings increased by 21% year-over-year to 44.2 billion, with trips rising by 18% to 3.1 billion [12] - Projections for the March-end quarter indicate a 15.6% growth in gross bookings from the Mobility segment and a 15.1% growth from the Delivery segment [13] - Total trips are expected to increase by 19.4% year-over-year in the upcoming quarter [13] Investment Outlook - Based on favorable market conditions and growth prospects, Uber is considered a solid investment pick, currently holding a Zacks Rank 2 (Buy) [14] - The Wall Street average target price for Uber stock is $90.02, suggesting an upside of over 39% from current levels [14]