Key Takeaways DASH's total orders climbed 21% in Q3 2025 to 776M on stronger engagement and new customers. Record DashPass and Wolt subscriptions and added retail partners supported order growth. DASH expanded its Autonomous Delivery Platform through a new Waymo pilot and promotions.DoorDash (DASH) is benefiting from a large customer base and strong growth in average consumer engagement, which has enhanced its order volume. In the third quarter of 2025, total orders increased 21% year over year to 776 milli ...

Core Insights - Bill Ackman, a billionaire investor, is known for his aggressive investment strategy, particularly in a limited number of companies, achieving significant profits from stocks like Chipotle and Alphabet [1] - Currently, Uber is a key focus for Ackman, who holds a substantial position in the company, making it the largest holding in his portfolio despite a slight reduction in Q3 [2][4] Company Performance - Uber generated nearly $38 billion in revenue in the first nine months of 2025, marking an 18% increase year-over-year, with mobility revenue also rising by 18% and delivery revenue increasing by 24% [6] - The company managed to limit cost growth to 13%, resulting in a net income of approximately $9.8 billion for the same period, a significant increase from $3.0 billion in 2024 [7] - A one-time income tax benefit of $4.3 billion contributed to the profit increase, but even without this, Uber's profits showed substantial growth [8] Stock Valuation - Uber's stock has appreciated nearly 40% over the past year, despite recent market sell-offs [8] - The current market capitalization of Uber is $174 billion, with a P/E ratio of 11 and a forward P/E of 13, indicating a potentially undervalued stock [9][10] - The forward one-year P/E ratio stands at 20, suggesting that Uber stock may be an underappreciated value, similar to Ackman's previous successful investments [10] Investment Considerations - While Ackman's investment in Uber may not be a direct buy signal for all investors, the company's strong market position in mobility and delivery, along with the potential for autonomous driving revenue, presents a compelling case for investment [5][11] - The low valuation of Uber is likely a significant factor in Ackman's interest, indicating that it may still be an opportune time for long-term investors to consider the stock [12]

Core Insights - Uber's stock price is currently around 91 dollars, reflecting a significant increase over the past year due to revenue growth and improved operating efficiency, despite volatility linked to tech-sector sentiment and regulatory changes [2][4] - The company achieved consistent profitability in late 2024, leading to a trailing P/E ratio of 11.69, the lowest since its IPO, while a forward P/E of 21.83 indicates expectations for continued earnings growth [2][4] - Analysts project Uber's stock could reach 184 dollars by 2030, with a consensus price target of 109.25 dollars, suggesting a potential upside of approximately 26 percent from current levels [5][7] Company Overview - Uber is transitioning from a ride-hailing service to a comprehensive mobility and logistics platform, with significant investments in technology and expansion in delivery and freight services [4][12] - The stock is favored by growth-oriented investors, but it remains in a "higher risk, higher reward" category due to regulatory, competitive, and macroeconomic factors [4][20] Financial Projections - For 2025, projections indicate cautious optimism, with expected stock prices ranging from a bullish prediction of 83.61 dollars to a bearish prediction of 69.89 dollars [8][16] - By 2030, bullish scenarios suggest Uber could solidify its dominance in multiple sectors, while bearish scenarios highlight risks from competition and regulatory challenges [19][20] Analyst Sentiment - A majority of analysts (29 out of 38) rate Uber as a Buy or Outperform, with the most optimistic forecasts reaching 150 dollars [7][12] - Recent analyst calls imply an average price target of 114.33 dollars, indicating a positive outlook for the stock [7] Growth Drivers - Sustained revenue growth and profitability across core segments, along with diversification into high-margin revenue streams such as autonomous vehicles and healthcare-related services, are key components of the bullish outlook [12][19] - International expansion in emerging markets is expected to enhance long-term growth prospects [12] Risks and Challenges - Regulatory risks, particularly around gig worker classification, could significantly impact costs and operational structure [13][14] - Competitive pressures from both traditional and new market entrants may limit market share and pricing power [13][14]

Core Insights - Didi is re-entering the Brazilian food delivery market with its "99 Food" brand, planning to invest 2 billion reais by June 2026, which is double its initial plan [2] - The Brazilian food delivery market is experiencing rapid growth, with a market size of 139 billion reais in 2023 and an annual growth rate of 15% to 20% from 2019 to 2023 [6] - iFood dominates the market with an 80% market share, making it challenging for new entrants like Didi and Uber to gain traction [4][5] Company Strategies - Didi aims to leverage its experience from Mexico, where it has successfully integrated ride-hailing and food delivery services, to establish a foothold in Brazil [8] - The company has a significant user base in Brazil, with over 55 million users and 1.5 million registered drivers, which can be utilized for food delivery [8] - Didi's strategy includes reusing existing transportation capacity to reduce delivery costs and improve response times [8] Market Dynamics - The Brazilian food delivery market is characterized by a high concentration of power with iFood, leading to complaints from riders about low wages and long hours, creating an opportunity for new players [6][11] - iFood is responding to competition by investing 17 billion reais and integrating with Uber to enhance its service offerings [7] - The competitive landscape is shifting as Didi and Meituan introduce different operational models, making the market less monotonous [10][11] Consumer Behavior - Consumers in Brazil show a strong preference for iFood due to its extensive restaurant partnerships and established brand loyalty, making it difficult for new entrants to attract users [4][10] - Local consumers express a willingness to try new platforms if they offer unique services or better value propositions, indicating potential for market disruption [10] Regulatory Environment - The Brazilian government has introduced regulations requiring platforms to provide benefits to delivery workers, increasing operational costs for companies like Uber [5] - The evolving regulatory landscape may impact the expansion strategies of new entrants like Didi, as they navigate different local laws and labor standards [9][11]

Core Insights - Uber Technologies and Starship Technologies are set to launch autonomous sidewalk robot delivery for Uber Eats by the end of the year, starting in Leeds, UK, in December, with plans for expansion to several European countries in 2026 and the United States in 2027 [2][3] Group 1: Partnership and Expansion Plans - The partnership combines Uber's mobility and delivery platform with Starship's autonomous delivery technology, aiming to enhance delivery efficiency [2] - The rollout will utilize Starship's AI-powered robots to complete deliveries in under 30 minutes for distances up to two miles [3] Group 2: Company Background and Growth - Starship Technologies, founded in 2014, has a fleet of 2,700 robots that have completed over 9 million deliveries across seven countries, with plans to expand to over 12,000 robots by 2027 [4] - Starship raised $50 million in a Series C funding round in October to expand its services to American urban markets and additional European cities [6] Group 3: Industry Impact and Vision - The collaboration is seen as a step towards defining the next generation of urban logistics, leveraging Uber's extensive delivery network and Starship's scalable autonomous technology [5] - Starship's CEO highlighted the profitability and operational success of their autonomous technology, indicating a significant shift in urban goods movement [6]

America's labor market continues to cool, and the gig economy is quietly absorbing some of the employment strain being felt across the economy. A new Goldman Sachs analysis found that platform-based gig work opportunities — which include major tech players like Uber (UBER), DoorDash (DASH), and Instacart (CART) — are holding up as traditional payroll growth cools. About 20% of people who lost pay, lost a job, or had hours cut turned to gig platforms to make up the difference, the analysis said. More sign ...

Core Insights - Uber Technologies has pursued aggressive global expansion and diversification beyond ride-sharing, establishing significant revenue streams through Uber Eats and Uber Freight, aiming to create a comprehensive transportation and delivery ecosystem [1] - Lyft has adopted a concentrated strategy focused primarily on ride-sharing within the United States, limiting its exposure to faster-growing markets like delivery and international operations [2] Uber's Performance - Uber reported strong third-quarter 2025 results, with earnings per share of $3.11 exceeding the Zacks Consensus Estimate of 67 cents, and total revenues of $13.46 billion surpassing the estimate of $13.26 billion, reflecting a 20.4% year-over-year increase [4] - The company maintained an excellent earnings surprise record, having outperformed the Zacks Consensus Estimate in the past four quarters with an average beat exceeding 200% [5] - Despite the strong performance, Uber's shares declined post-earnings due to soft EBITDA guidance for the fourth quarter, with management projecting adjusted EBITDA between $2.41 billion and $2.51 billion [6][7] Lyft's Performance - Lyft's third-quarter 2025 results showed revenues of $1.68 billion and adjusted EPS of 26 cents, both missing estimates, while gross bookings rose 18% year-over-year to $4.8 billion, marking the 18th consecutive quarter of double-digit growth [9][12][14] - Lyft's partnership with Curb has positively impacted its market momentum, leading to double-digit gains since the earnings release [15] - The company expects fourth-quarter gross bookings in the range of $5.01 billion to $5.13 billion, indicating 17-20% growth from the previous year [14] Valuation Comparison - Lyft is trading at a forward sales multiple of 1.26X, which is more favorable compared to Uber's 3.22X, indicating a better valuation picture for Lyft [19] - Lyft's recent performance and strategic partnerships place it on a more solid footing than Uber, which faces challenges with its EBITDA guidance and concerns over the profitability of autonomous vehicles [20] Investment Outlook - Based on the analysis, Lyft is positioned as a stronger investment opportunity compared to Uber, currently holding a Zacks Rank 2 (Buy) while Uber holds a Zacks Rank 3 (Hold) [21]

Core Viewpoint - Bill Ackman sees significant upside potential in his investments, particularly in Uber, Brookfield Corporation, and Alphabet, among others, due to their strong fundamentals and growth prospects [1][2]. Investment Strategy - Ackman focuses on high-quality businesses with strong cash flow and limited downside risk, often taking activist positions to unlock shareholder value [2][3]. Portfolio Overview - Pershing Square Capital Management holds shares in 15 large-cap companies, with 75% of its $15 billion stock portfolio concentrated in five key holdings [3]. Key Holdings - **Uber Technologies (19.6%)**: Ackman appreciates Uber's strong network effects, management quality, operational performance, and cash flow, expecting earnings per share to grow over 30% annually [4][5]. - **Brookfield Corporation (17.7%)**: Added to the portfolio in 2024, Brookfield is positioned for growth due to AI infrastructure demand and an aging population, potentially quadrupling its wealth solutions asset base to $600 billion [6][8]. - **Alphabet (14.4%)**: Ackman has invested in Alphabet due to its rapid AI integration and strong financial performance, including $100 billion in revenue and a 33% year-over-year profit growth [9][11]. - **Howard Hughes Holdings (13.4%)**: Ackman aims to transform Howard Hughes into a diversified holding company, increasing its stake to 47% and focusing on unlocking value from real estate assets [12][13]. - **Restaurant Brands (10.6%)**: The company is valued for its capital-light business model and plans to enhance sales through investments in Burger King and expansion in Tim Hortons [14][17].

Core Insights - DoorDash (DASH) shares have increased by 21.7% year-to-date, underperforming the Zacks Internet-Services industry's growth of 44.6% and the broader Zacks Computer & Technology sector's rise of 24.3% [1][9] - The underperformance is attributed to intense competition in the local food delivery logistics market, which is highly fragmented [2][15] - Despite challenges, DoorDash is experiencing strong order growth and rising Marketplace Gross Order Value (GOV), supported by an expanding partner network and enhanced logistics efficiency [5][9] Company Performance - Total orders for DoorDash increased by 21% year-over-year to 776 million, while Marketplace GOV rose by 25% year-over-year to $25 billion [6] - The expanding partner base, including collaborations with Waymo, Kroger, and McDonald's, has significantly broadened DoorDash's reach and service offerings [7][10] - DoorDash's partnership with Waymo aims to test an autonomous delivery service in Metro Phoenix, enhancing its Autonomous Delivery Platform initiative [8] Financial Outlook - For Q4 2025, DoorDash anticipates Marketplace GOV to be between $28.9 billion and $29.5 billion [13] - The Zacks Consensus Estimate for 2025 earnings is $2.30 per share, indicating a year-over-year increase of 693.10% [13] - Revenue estimates for 2025 are projected at $13.62 billion, reflecting a year-over-year increase of 27.07% [14] Competitive Landscape - DoorDash faces rising competition from other local food delivery platforms, notably Uber Technologies and Maplebear (Instacart), which are expanding their market presence [15] - Maplebear has launched AI Solutions to enhance grocery operations, indicating a strong competitive stance in the food delivery and retail technology landscape [16][17] Valuation Concerns - DoorDash shares are considered overvalued, with a trailing 12-month Price/Book ratio of 9.18, compared to the industry average of 7.40 [18] - The current Zacks Rank for DoorDash is 4 (Sell), suggesting that investors should be cautious regarding the stock [20]

Core Insights - Uber is proud of its ability to achieve large-scale profit growth, with both ride-hailing and delivery services accelerating. The company is intentionally slowing the pace of profit margin expansion and is now asking investors to measure the company by total profit growth in dollars, committing to annual profit growth in the foreseeable future [1][7] Ride-Hailing and Delivery Business - The ride-hailing business employs a "barbell strategy," balancing basic services like UberX with premium products such as Uber for Business, which generate higher margins. Profits from these premium products are reinvested into new growth areas, including the development of autonomous vehicles (AV) [1][8] - The delivery business has seen its fastest growth in four years, with a run rate of $12 billion, significantly outpacing online food delivery growth. This growth is attributed to improvements in product offerings, particularly in grocery and retail sectors [5][10] Autonomous Driving Initiatives - Uber's autonomous driving business is currently unprofitable, with expectations that it will not achieve profitability in the coming years. The company plans to use profits from its core and premium services to support investments in AV [1][8] - A partnership with NVIDIA aims to create a Level 4 (L4) autonomous driving reference architecture, which will benefit Uber's ecosystem by enabling higher daily revenue per vehicle. Initial deployment includes 5,000 vehicles powered by NVIDIA technology, with plans for large-scale expansion [2][4] User Engagement and Cross-Platform Strategy - Only 20% of users currently utilize both ride-hailing and delivery services. Uber is implementing strategies to increase cross-platform usage, such as personalized experiences and membership programs, which have shown to triple average spending among cross-platform users [3][10] - The Uber One membership program has reached 36 million members, contributing significantly to the overall booking volume in delivery services and improving retention rates [10] Financial Performance - In Q3, adjusted EBITDA grew by 33% year-over-year, with a profit margin of 4.5% of gross bookings, marking a historical high. The company is tracking towards a three-year framework goal of high teens growth in gross bookings and a compound annual growth rate of 30% to 40% in EBITDA [7][16] - The company is focused on balancing investments across its product lines while ensuring profitability, particularly in the context of expanding its autonomous driving capabilities [7][8] Data Collection and Market Insights - Uber is leveraging its ride-hailing network to collect real-world data, particularly in high-demand areas. The collaboration with NVIDIA is expected to enhance data quality through advanced sensor technology [17] - Markets with deployed autonomous vehicles, such as Austin, have shown higher driver earnings compared to other regions, indicating a healthy market environment [6][16]