Wedbush: UBER Earnings Need to Show TSLA, Waymo Robotaxi Resilience

Core Viewpoint - Uber is expected to report strong earnings with an adjusted EPS of 79 cents and revenue exceeding $14 billion, reflecting a 20% growth in topline and 17% EBITDA margins [1][2][3] Financial Performance - Analysts anticipate Uber's revenue growth to be around 20% with EBITDA margins at 17% [2][3] - The stock has seen a 16% increase over the past 12 months, although it is currently trading lower by about 3% ahead of earnings [1][2] Competitive Landscape - The emergence of autonomous vehicles, particularly from competitors like Waymo and Tesla, poses significant challenges to Uber's business model [3][4][5] - The industry is expected to shift from a fragmented supply base to a more concentrated one, which could negatively impact Uber's take rate [5][6] Market Position - Uber is better positioned than Lyft due to its global presence and diversified revenue streams, with 50% of gross bookings coming from its delivery business [10][11] - Lyft is primarily a US-based business and is more exposed to the risks associated with the ride-sharing market [10][11] Investment Outlook - The current neutral rating on Uber reflects concerns about long-term impacts from competition and market concentration, with a price target set at $78 [6][7] - Short-term dynamics remain positive as long as economic conditions are favorable, but there are concerns about terminal value risks [8][9]