Uber Technologies, Inc. (NYSE:UBER) is one of the 13 best Fortune 500 stocks to invest in now. TD Cowen Remains Bullish on Uber Technologies (UBER), Cites Robust Fundamentals and Strong Execution On October 15, 2025, TD Cowen reaffirmed its “Buy” rating on Uber Technologies, Inc. (NYSE:UBER) with a $108 price target. The investment firm’s bullish stance stems from the company’s robust fundamentals and strong execution across business lines. The firm expects Uber Technologies, Inc. (UBER)’s gross booking ...

Core Viewpoint - Lyft is experiencing a resurgence in the ride-hailing market, outperforming Uber in stock performance year to date, driven by market share recovery and positive free cash flow generation [1][10]. Partnership with Waymo - Lyft announced a partnership with Waymo to manage self-driving vehicles in Nashville, marking a significant development for Lyft as it navigates the autonomous vehicle landscape [2][3]. - Waymo's self-driving cars will be managed through Lyft's Flexdrive service, leading to a positive market reaction with Lyft's shares rising over 10% following the announcement [4]. - While Waymo is currently a partner, it could become a competitor in the future, as customers will have the option to hail Waymo vehicles through both Lyft and Waymo's apps [5][6]. Market Share and Growth - Lyft's market share in the U.S. has increased from 26%-27% to 30%-31% since CEO Dave Risher took over in 2023, attributed to lower ride costs and innovative features [9]. - The company has expanded its operations into Canada and is developing new features like the Flexdrive program [9]. Financial Performance - Lyft reported revenue of $1.59 billion last quarter, an 11% increase year over year, and achieved $993 million in free cash flow, indicating a profitable operation [10]. - The company has a market cap of $9.2 billion, which appears inexpensive compared to its free cash flow generation and Uber's $200 billion market value [12]. - Despite a high price-to-earnings ratio of around 100, Lyft has potential for profit margin expansion, as net income was only 0.9% of total booking volume last quarter [13]. Future Outlook - The turnaround under Risher has alleviated bankruptcy concerns, with steady revenue growth and new partnerships like the one with Waymo [14].

Core Insights - Lyft is beginning to recover in the market, outperforming Uber in stock returns year to date, attributed to regaining market share and generating positive free cash flow [1] Partnership with Waymo - Lyft announced a partnership with Waymo in Nashville, which is significant for Lyft as it navigates the autonomous vehicle landscape [2] - Waymo has expanded its self-driving platform to various cities and will collaborate with Lyft in Nashville to manage its fleet of vehicles [3] - Lyft's Flexdrive service will oversee Waymo's vehicles in Nashville, leading to a positive market reaction with Lyft's shares rising over 10% [4] Competitive Landscape - While Waymo is currently a partner, it could become a competitor in the future, allowing customers to hail self-driving vehicles through both Lyft and Waymo applications [5] - Lyft's partnership with Waymo is not its only venture into self-driving technology, as it also has a deal with Mobileye announced in 2024 [6] Market Position - Lyft has managed to stabilize its market share in the United States, facing competition primarily from Uber [8] - Despite not being the cheapest stock, Lyft may still represent a good investment opportunity [9]

Company Overview - Lyft has recently formed a partnership with Waymo to introduce fully autonomous ride-hailing services in Nashville by 2026, leading to a 25% increase in its stock price [1] - Lyft's market capitalization is approximately $8.7 billion, and it differentiates itself from competitors like Uber through rider-focused experiences and a commitment to autonomous mobility [2] - The stock has increased by 121% over the past 52 weeks, outperforming the S&P 500 Index, which rose by 25% during the same period [3] Financial Performance - In Q2 2025, Lyft reported Gross Bookings of $4.5 billion, a 12% year-over-year increase, and revenue of $1.6 billion, up 11% [5] - Net income surged to $40.3 million from $5.0 million in the previous year, with net income as a percentage of Gross Bookings rising to 0.9% from 0.1% [5] - Adjusted EBITDA reached a record $129.4 million, growing 26% year-over-year, with a margin improvement to 2.9% of Gross Bookings [6] Valuation Metrics - Lyft's current price-earnings (P/E) multiple stands at 81.6x, with a next-year P/E multiple of 66.4x, indicating a rich valuation compared to conventional transport industry peers [4] - The company is priced at 1.6x sales and 87x cash flow, reflecting positive investor sentiment regarding future growth [4] - Profitability challenges are evident with a minimal net margin of 0.39% and a price-to-book (P/B) multiple of 12.8 [4] Cash Flow and Share Buyback - Free cash flow increased to $329.4 million from $256.4 million, with trailing twelve-month free cash flow nearing $1 billion [6] - Operating cash flow exceeded $343 million, enabling Lyft to repurchase 12.8 million shares for $200 million under its buyback program [6]

Group 1: Shopify - Shopify stock has doubled over the past year, benefiting from robust organic growth as e-commerce continues to rise as a percentage of retail sales [3][5] - The company is expanding from a solely e-commerce model to a full commerce approach, supporting physical stores and omnichannel businesses, which broadens its addressable market [4] - Shopify's revenue increased by 31% year over year in Q2, with operating income up 21% and free cash flow rising 27% at a 16% margin [5][6] - The company holds over 12% of the U.S. e-commerce market share, with expectations for further growth driven by new tools and services like Shop Pay, which saw a 65% increase in Q2 [6][7] Group 2: Lyft - Lyft has shown signs of a turnaround, with steady growth and profitability, and recently launched innovative features like Lyft Silver for seniors [8] - The stock has increased by 42% in the last month, partly due to a partnership with Waymo for a fully autonomous ride-hailing service in Nashville by 2026 [9][10] - Lyft generated nearly $1 billion in free cash flow over the last four quarters, trading at roughly 9 times free cash flow, indicating considerable upside potential [11] Group 3: Roblox - Roblox is experiencing significant growth, with daily active users reaching nearly 112 million in Q2, a 41% year-over-year increase, driven by user-created content [12][13] - The company reported revenue of $1.1 billion last quarter, representing a 21% year-over-year increase, and is effectively monetizing its user base [13] - Roblox is integrating AI across its platform, which is expected to enhance user experience and drive higher revenues, with free cash flow projected to grow from $1.1 billion in 2025 to $3.8 billion by 2029 [14][15]

Financial Performance - Uber's stock has increased nearly 48% since early January, driven by strong financials, with Q2 revenue climbing 18% and operating income surging 82% [1] - The company has a current valuation of $194 billion with revenue of $47 billion, trading at $92.95, reflecting a revenue growth of 18.2% over the past 12 months and an operating margin of 9.5% [7] Strategic Initiatives - Investors are optimistic about Uber's autonomous vehicle strategy, particularly its partnership with Waymo, which is expected to provide long-term cost efficiencies [1] - A $20 billion stock buyback plan indicates management's increasing confidence in the company's outlook and aims to enhance shareholder value [1] Market Resilience - Uber's stock has historically performed worse than the S&P 500 during economic downturns, with a decline of 67.6% from a peak of $63.18 on February 10, 2021, to $20.46 on June 30, 2022, compared to a 25.4% drop for the S&P 500 [8] - Despite past declines, Uber's stock fully regained its pre-crisis high by December 27, 2023, and reached a high of $98.85 on September 15, 2025, currently trading at $92.95 [8] Historical Performance - The stock experienced a decline of 64.1% from a peak of $41.27 on February 11, 2020, to $14.82 on March 18, 2020, compared to a 33.9% decline for the S&P 500, but fully recovered by November 5, 2020 [10]

Company Performance - Uber Technologies (UBER) shares fell by 5% following the announcement of a partnership between Waymo and Lyft to launch robotaxi services in Nashville, which increased Lyft's shares by over 13% [5][9]. - Insulet (PODD) shares decreased by 3% after the announcement of a CFO transition, although the company expects third-quarter revenue growth to exceed prior expectations due to strong customer additions [6]. - Workday (WDAY) stock surged by 7.3% after activist investor Elliott Investment Management disclosed a stake worth more than $2 billion, expressing confidence in the company's management and operational plans [10]. Market Overview - The S&P 500 index ended with a slight loss of about 0.1% after the Federal Reserve announced a quarter-percentage-point reduction in benchmark interest rates, with the Nasdaq down 0.3% and the Dow up 0.6% [3][8]. - Stocks related to the home building sector experienced declines despite the Fed's interest rate cut, as home builder confidence remained at its lowest level since December 2022, with Builders FirstSource (BLDR) losing 5.6% and Mohawk Industries (MHK) dropping 4% [4]. Sector Movements - Hologic (HOLX) shares increased by 7.7%, marking the top performance in the S&P 500, following reports of renewed acquisition discussions with investment firms Blackstone and TPG [7]. - Fox Corp. (FOXA) shares gained around 3% as Lachlan Murdoch solidified his leadership, with plans to attract younger audiences through new initiatives [11].

Market Dynamics - Ridesharing industry giant's shares declined following a competitor's announcement [1] - HR software firm experienced a boost due to an activist investor's stake [1]

Group 1 - Lyft shares increased by as much as 14%, reaching a three-year high after announcing a partnership with Waymo [1][2] - The partnership will introduce Waymo's robotaxi service to Nashville, expanding its existing services in several major cities [2] - Lyft will be responsible for vehicle maintenance, infrastructure, and depot operations as part of the agreement [2] Group 2 - Lyft's stock has risen significantly since its second quarter earnings report in August, despite missing revenue and earnings expectations [5] - The company reported $4.5 billion in gross bookings, marking a 12% year-over-year increase [5] - Waymo aims to expand its autonomous ride services to additional cities, with plans to offer around one million rides per week by the end of next year [5]

Core Insights - Lyft and Waymo have announced a partnership to launch a robotaxi service in Nashville starting next year, leading to a significant increase in Lyft's stock price [1][6] - Lyft shares rose over 13% following the announcement, while Uber's shares fell by 5% [1][6] - Lyft's stock has gained more than 75% in value in 2025, while Uber's shares have increased by over 50% during the same period [3][6] Company Developments - Waymo will utilize Lyft's fleet-management services, which include vehicle maintenance and infrastructure operations [2] - Lyft plans to build an autonomous vehicle fleet management facility that will include charging and vehicle service capabilities as part of the partnership [2] - The robotaxi service will initially be available on the Waymo app, with plans to expand to the Lyft app later in the year [2] Industry Context - The robotaxi market is becoming increasingly competitive, with Waymo previously launching services in Atlanta and Austin, and Tesla also entering the market with its autonomous driving service [3] - Alphabet's stock has seen a roughly 33% increase in value in 2025, reflecting the broader interest and investment in autonomous mobility solutions [3]