Melius Downgrades Uber to Sell, Warns of Rising Autonomous Vehicle Competition

Core Viewpoint - Melius downgraded Uber Technologies from Hold to Sell with a price target of $73, leading to a more than 1% decline in shares on the day of the downgrade [1] Group 1: Company Position and Competition - Uber is recognized as the clear global leader in ride-sharing and delivery, but this leadership exposes the company to significant risks from increasing competition [2] - The analyst highlighted that competition from autonomous vehicles is expected to rise significantly starting in 2026, which could negatively impact returns for Uber, regardless of whether it partners with new entrants or competes against them directly [3] Group 2: Valuation and Growth Concerns - Although Uber's valuation appears inexpensive, it is suggested that this valuation assumes steady-state growth with minimal impact from competitive threats [3] - Melius warned that if growth slows or if competitors like Waymo or Tesla pursue further standalone expansion in the U.S. market, there could be downside risks not fully reflected in current valuations [4]