/Uber%20Technologies%20Inc%20logo%20outside%20offices-by%20Sundry%20Photography%20via%20iStock.jpg)
San Francisco, California-based Uber Technologies, Inc. (UBER) provides a platform that allows users to access transportation, and food ordering services. With a market cap of $153.9 billion, Uber operates the world’s largest mobility platform with its operations spanning approximately 70 countries and over 10,000 cities across the globe.
Companies worth $10 billion or more are generally described as "large-cap stocks," and Uber Technologies fits this bill perfectly. Given its dominance in the software application space, its valuation above this mark is not surprising. The company has recently committed to becoming a fully electric, zero-emission platform by 2040, with 100% of rides taking place in zero-emission vehicles, on public transit, or with micro mobility, showcasing its aggressive stance towards tackling climate change.
However, the stock has plunged over 16% from its all-time high of $87 achieved on Oct. 11. Moreover, Uber’s stock prices have observed a marginal decline over the past three months lagging behind the Nasdaq Composite’s ($NASX) 9.5% gains during the same time frame.
Uber Technologies has underperformed the Nasdaq over the longer term as well. Uber’s stock has gained 18.7% on a YTD basis and 27.4% over the past 52-week period compared to the NASX’s surge of 29.3% in 2024 and 35.6% over the past year.
UBER has traded below its 50-day moving average since early November. It has mostly traded below its 200-day moving average since mid-November.
Uber Technologies' stock prices plummeted 9.3% after the release of its Q3 earnings on Oct. 31 as the company’s gross bookings of $41 billion fell below Street’s expectations of $41.3 billion. However, the company’s overall performance remained more than impressive as the company observed massive improvement in profitability and topline growth. Its revenues surged by a staggering 20.4% year-over-year to $11.2 billion, exceeding analysts’ expectations. Moreover, the company reported an even more impressive 54.8% year-over-year growth in adjusted EBITDA, totaling $1.7 billion and its EPS of $1.20 surpassed the consensus estimates by an enormous 192.7%.
Uber Technologies has lagged behind its peer Grab Holdings Limited’s (GRAB) 53.7% gains on a YTD basis and 68.7% returns over the past 52 weeks.
Nevertheless, the company has a consensus “Strong Buy” rating among the 44 analysts covering the stock. UBER’s mean price target of $91.76 represents a staggering 25.6% premium to the current price levels.
