Uber's revenue growth, coupled with its scalable business model, is now generating huge profits.
Despite macro uncertainty, Uber reported strong financial performance, which could indicate that demand for its applications could be resistant to recession.
Investors are not required to pay high valuations for companies that still have meaningful expansion potential.
10 Better Stocks than Uber Technologies ›
Uber (NYSE: Uber) Stocks have been on the fast track. Just this year, they grew 48% (as of May 28). They have soared 156% over the past five years, giving the wider market a wide range of profits. The market is passionate about the business, thanks in large part to strong financial results led by CEO Dara Khosrowshahi.
Watching Uber rise from a clumsy startup in 2009 to now being a global enterprise is amazing. this Growth stocks In the eyes of investors, it is a winner. But, five years later, where will Uber be?
It's worth calling up the business right away and it's awesome profits that critics may never have imagined. This view is understandable. In 2019, Uber reported $8.6 billion in large-scale business losses. More and more attention is being paid to efficiency, expense control and profit growth, supporting the bottom line, with operating income totaling US$1.2 billion in the first quarter of 2025 alone.
Uber's revenue capacity should continue to improve in the coming years. After all, technically, it is a software business. This means it should scale in a profitable way, which is exactly what we have seen in recent years. The leadership team believes that it has been adjusted Income, taxation, depreciation and amortization before interest (EBITDA) grows up to 40% per year between 2024 and 2027.
Economists, analysts, company executives and consumers are all worried about the direction of the economy. President Donald Trump's trade announcement also gave everyone confidence and uncertainty to drive the roller coaster.
Faced with this unfavorable background, Uber's success is worth noting. Revenue in the first quarter increased by 14%, total bookings increased by 14%, and completed travel increased by 18%. This should make investors wonder if Uber is somewhat recession-resistant. During tough times, consumer spending can often be under pressure, but people still need to arrive everywhere and want to provide food and groceries.
It will be interesting to see how Uber's major financial metrics trend in the coming quarters. But so far, investors should be encouraged.
Apart from making investors believe that it should be able to successfully drive any economic turmoil, Uber seems to have meaningful long-term growth potential. "Only 5% of our operating footprint (about 5%) are monthly active users," Khosrowshahi said. "And there is room for more people to use company apps."
Uber One subscription, another growth area, increased 60% year-on-year membership in 2024. These users spend more on the platform and use these services more frequently.
Digital advertising is another medium of growth, with Uber operating interest rate revenue of $1.5 billion in the first quarter. With its ability to collect incredible data, Uber should continue to be a valuable advertising partner for many businesses.
Then Self-driving car (AV) technology. Due to Uber’s huge scale, it’s no surprise that the example of monthly active users illustrates this, and it’s being registered with AV Partners on the left and right. These technology companies see Uber as a key partner to reach a large customer base and support further development, adoption and commercialization.
"We believe that AV technology is Uber's biggest opportunity," the CEO said.
Uber stock is now waving a strong momentum. Even with so much optimism about the business these days, I think valuation is compelling. The stock is trading at a forward price-to-earnings ratio of 24.7. Adding it to the Uber earnings trajectory, I wouldn't be surprised if the stock doubles between now and 2030.
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Neil Patel has no position in any of the stocks mentioned. Motley fool has a place and recommends Uber technology. Motley Fool has a disclosure policy.
Where is Uber stock in 5 years? Originally published by Motley Fool