Buy, Sell or Hold UBER Stock? Key Insights Ahead of Q3 Earnings

Core Insights - Uber Technologies (UBER) is set to announce its Q3 2025 results on November 4, with earnings estimated at 67 cents per share and revenues at $13.26 billion [1] - The earnings estimate has remained stable over the past 60 days, with revenue expected to grow by 18.5% year-over-year, while earnings are projected to decline by 44.2% [2] - For the full year 2025, UBER's revenue is estimated at $51.43 billion, reflecting a 16.9% year-over-year increase, but EPS is expected to decline by 36.4% [3] Earnings Expectations - The model does not predict a definitive earnings beat for UBER, with an Earnings ESP of -1.30% and a Zacks Rank of 3 (Hold) [4][5] - Gross bookings for Q3 2025 are anticipated to be between $48.25 billion and $49.75 billion, indicating a growth of 17-21% on a constant-currency basis compared to Q3 2024 [6][8] - Adjusted EBITDA is expected to range from $2.19 billion to $2.29 billion, representing a year-over-year growth of 30% to 36% [7][8] Market Performance - UBER has shown a year-to-date gain of 58.2%, outperforming the Zacks Internet-Services industry (up 41.4%) and the S&P 500 index (up 18.3%) [10] - Compared to competitors, Lyft has gained 55.3% and DoorDash has gained 55.9% year-to-date, indicating UBER's strong market position [10] Valuation Metrics - UBER is trading at a forward P/E ratio of 28.27, higher than the industry average of 26.11 and the S&P 500's 23.99, indicating a relatively expensive valuation [13] - Lyft and DoorDash have higher forward P/E ratios of 39.96 and 71.86, respectively, with UBER having a Value Score of D [13] Strategic Initiatives - UBER's diversification efforts and shareholder-friendly approach are highlighted as strengths, with a market capitalization of $201.08 billion [18] - The company is focusing on autonomous vehicles and has formed strategic partnerships to mitigate R&D costs associated with developing these technologies independently [19] - UBER's international market expansion and geographic diversification are seen as beneficial for long-term stability [18]