1 glorious growth stock that could turn $200,000 into $1 million by 2035

Uber Technology (NYSE: Uber) Operate the world's largest ride network, as well as popular food delivery and commercial freight services. It relies on 8.5 million drivers and couriers to meet the needs of its 170 million active customers, but the company is in a major shift that could change its financial performance.

Uber has signed partnerships with 18 companies that develop self-driving cars, robots and even aircraft, and the list is growing. Since human drivers are the biggest cost for companies, these transactions could save billions of dollars a year, which will flow to Uber’s revenue and its lowest point.

In fact, due to autonomous technology, I think Uber stock could surge 5 times in the next decade. By 2035, it could turn a $200,000 investment into $1 million.

Image source: Getty Images.

In the first quarter of 2025 (as of March 31), Uber reported $42.8 billion in total bookings, which is the dollar value per trip, food orders and commercial delivery, and the platform provides promotion on behalf of its customers. The $18.6 billion earned in the quarter is a single component of the total booking figure.

Uber's revenue was $11.5 billion after deducting another $12.9 billion in merchant spending, such as money paid for restaurants on customers' food orders. Then, once the company was considered with operating costs such as marketing and R&D, net income (profit) for the quarter was based on accepted accounting principles (GAAP) for $1.7 billion.

In other words, Uber doesn't keep the huge amount of money customers spend on their platform. That's why self-driving cars have the potential to change their economy - if self-driving cars and robots reduce Uber's reliance on human drivers, the company's total quarterly bookings could make an additional $18.6 billion (according to its Q1 results).

Uber will have to pay companies that deploy self-driving cars to the network, but since they can operate 24/7, economics may still be much better than using human drivers. In addition, Uber Can Choosing to buy an autonomous car and operating them automatically will become more profitable in the long run.

CEO Dara Khosrowshahi said in a ready address to shareholders in the first quarter of 2025 that Uber has partnered with 18 different providers of 14 self-driving cars six months ago. In short, developers want to deploy their vehicles to the mobility network with the largest users so they can maximize revenue, giving Uber a clear advantage in the competition.

Many of these partners are already producing results, as Uber now promotes about 1.5 million automated travel per year (according to its first quarter results, annualized). Many of these are attributed to letterWaymo completes more than 250,000 autonomous trips per week – some through its own rides, some through Uber.

Waymo has been operating in Phoenix, Los Angeles and San Francisco, but it entered Austin, Texas in March as part of its exclusive contract with Uber. It currently has 100 self-driving cars on the market, and Uber says they are busier than 99% of human drivers on the regional platform. Over the next few months, the two companies will deploy hundreds of driverless cars in Austin and plan to expand to Atlanta.

Waymo has been a huge success, but Uber wants to help its other autonomous partners commercialize their technology faster because of their huge potential to save money for human drivers. As a result, it has Nvidia Earlier this year, it was the world's leading provider of chip and artificial intelligence software (AI) development.

Uber will use NVIDIA's DGX cloud supercomputer platform to process data on billions of travel facilitated each year, which will help its autonomous partners create more powerful autonomous driving models. Uber will also use Nvidia's Cosmos Foundation model to create real-world training simulations, which will further speed up the development process.

Based on Uber's 12-month lag, revenue was $45.3 billion, with a market capitalization of $174 billion, and its stock is about 4 at price-to-sales (p/s). Here is its slight discount of 4.2 on average, and its history goes back to when the company went public in 2019:

Uber PS Ratio Chart
YCHARTS Uber PS ratio data

If we assume that Uber's P/S ratio remains constant at 4, the company will need to generate about $226.5 billion in annual revenue from 2035 to 2035 to prove that its stock returns are five times. This means a CAGR of 17.5% over the next decade. Between 2017 and 2024, Uber actually grew its revenue at a rate of 27.7%, suggesting it should be working hard to achieve this.

However, with the larger revenue base, it is difficult for Uber to grow rapidly. According to Wall Street consensus estimates (provided by Yahoo! Finance), the company expects to increase revenue by 14% per year over the next two years. If this trend continues, it may take more than a decade for Uber stock to turn $200,000 into $1 million.

But keep this in mind: If Uber can completely eliminate human drivers, Uber will make an additional $18 billion a quarter. It certainly won’t happen overnight, but the gradual shift to self-driving cars could be a huge headwind for revenue in the coming years. In fact, Khosrowshahi believes that in the United States alone, Uber's autonomy will be worth more than $1 trillion.

So while Uber may achieve lower-trend revenue growth in the coming years, it could accelerate this decade (and beyond) as more and more self-driving cars head on this path. As long as the company's revenue grows average value Over the next 10 years, 17.5% of stocks will lay the foundation for their stock returns.

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Alphabet executive Suzanne Frey is a member of the board of directors of Motley Fool. Anthony Di Pizio has no position in any of the stocks mentioned. Motley Fool is in position and recommends letters, Nvidia and Uber Technologies. Motley Fool has a disclosure policy.

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