Bill Ackman Endorses Uber (NYSE: UBER) as Top Stock, Price Target Adjusted to $105
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Source: Yahoo Finance
- Market Share Advantage: Uber holds a dominant 64% share in the rideshare market compared to Lyft's 31%, which enhances its competitive position and market influence.
- Strong Revenue Growth: Over the past year, Uber achieved an 18.25% revenue growth, totaling $49.61 billion, reflecting robust performance in delivery and logistics services that further solidifies its market standing.
- Stable EBITDA Performance: KeyBanc slightly adjusted its EBITDA forecast for Uber, with the current EBITDA at $5.29 billion, indicating sustained profitability and resilience in an uncertain market environment.
- Optimistic Long-Term Outlook: Mizuho highlights that Uber is well-positioned to benefit from the maturation of autonomous vehicle technology by 2026, suggesting that while there is near-term valuation caution, Uber's demand aggregation and pricing strategies will support long-term growth.
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Analyst Views on UBER
Wall Street analysts forecast UBER stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for UBER is 114.67 USD with a low forecast of 73.00 USD and a high forecast of 150.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
31 Analyst Rating
27 Buy
3 Hold
1 Sell
Strong Buy
Current: 79.780
Low
73.00
Averages
114.67
High
150.00
Current: 79.780
Low
73.00
Averages
114.67
High
150.00
About UBER
Uber Technologies, Inc. operates a technology platform that uses network and technology to power movement from point A to point B. It develops and operates technology applications supporting a variety of offerings on its platform (platform(s)). Its segments include Mobility, Delivery and Freight. Mobility products connect consumers with drivers who provide rides in a variety of vehicles, such as cars, auto rickshaws, motorbikes, minibuses, or taxis. Delivery offerings allow consumers to search for and discover local restaurants, order a meal, and either pick-up at the restaurant or have the meal delivered. In certain markets, the Delivery segment provides offerings for grocery, alcohol, and convenience store delivery as well as select other goods. The Freight segment connects carriers with shippers on its platform, and gives carriers upfront, pricing and the ability to book a shipment. The Freight segment also includes transportation management and other logistics service offerings.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Waabi Raises $1B to Expand into Robotaxi Market
- Funding Milestone: Waabi has successfully raised $1 billion in its latest funding round led by Khosla Ventures and G2 Venture Partners, with the capital aimed at accelerating the commercial deployment of autonomous trucks and expanding into the robotaxi market.
- Exclusive Partnership: The startup has secured an exclusive deal with Uber to deploy over 25,000 Waabi Driver-powered robotaxis on the Uber platform, significantly accelerating the large-scale adoption of robotaxis.
- Market Expansion Plans: Waabi intends to line up agreements with manufacturers to produce new trucks equipped with its self-driving technology, further enhancing its market presence and promoting the adoption of autonomous driving solutions.
- Investment Background: In 2024, Waabi raised $200 million in an oversubscribed Series B funding round, bringing its total investment to over $280 million, attracting notable investors such as Uber, Nvidia, and Porsche.
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GrubHub Eliminates Delivery Fees on Orders Over $50
- Policy Implementation: GrubHub will begin a new policy on Thursday that eliminates service and delivery fees for restaurant orders over $50, with a broader rollout planned for February 2, aiming to enhance customer loyalty and increase order sizes.
- Competitive Strategy: By removing delivery fees of up to $8 and service fees of 10% to 15%, GrubHub seeks to attract users from DoorDash and Uber Eats, particularly as the latter charges an additional $2 for orders under $10.
- Checkout Abandonment Issue: This initiative aims to reduce the phenomenon of “checkout abandonment,” where customers drop large orders due to high delivery fees, thereby increasing overall sales and improving user experience by addressing a major pain point in the food delivery industry.
- Market Share Challenge: With GrubHub holding only 4% market share compared to DoorDash's 71% and Uber Eats' 23%, this policy is designed to attract new customers and encourage larger orders to reverse the trend of declining market share.
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