Uber Technologies, Inc. (UBER): A Bull Case Theory

We came across a bullish thesis on Uber Technologies, Inc. (UBER) on Substack by Quality Equities. In this article, we will summarize the bulls’ thesis on UBER. Uber Technologies, Inc. (UBER)’s share was trading at $75.61 as of March 25^th. UBER’s trailing and forward P/E were 16.58 and 28.33 respectively according to Yahoo Finance.

Uber remains a standout investment opportunity amid ongoing market volatility. While uncertainty has rattled investors, history shows that turbulent periods create attractive entry points for high-quality companies. Uber’s dominant position in global mobility and food delivery, along with its strong brand recognition and scalable platform, reinforces its competitive edge. The company benefits from powerful network effects, where increasing rider and driver engagement strengthens its market leadership. More importantly, Uber’s transition toward profitability is accelerating, supported by disciplined cost management, expanding margins, and robust free cash flow generation.

With significant operating leverage, Uber is poised for sustained growth, particularly as it expands into adjacent markets like autonomous vehicles and advertising. J.P. Morgan remains bullish, emphasizing Uber’s approach to integrating AV supply into its platform, which could position the company to capitalize on a U.S. AV market potentially worth $1 trillion. Near-term catalysts include Uber’s AV deployments with Waymo in Austin and Atlanta, as well as continued improvements in driver supply and merchant selection. Strong Q4 fundamentals, with 14% YoY growth in Monthly Active Platform Consumers and increased trip frequency, further validate Uber’s momentum.

At current levels, Uber is attractively valued. If the company continues growing free cash flow per share at a 14% CAGR over the next five years and trades at a 4% free cash flow yield, investors could see an annualized return of 15.3%. Given its improving financial profile, expanding market opportunities, and commitment to efficiency, Uber offers a compelling long-term investment with significant upside potential.

Uber Technologies, Inc. (UBER) is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 166 hedge fund portfolios held UBER at the end of the fourth quarter which was 136 in the previous quarter. While we acknowledge the risk and potential of UBER as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than UBER but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.