In the last 52 weeks, Uber Technologies (UBER) stock has remained largely sideways. While gross bookings and top-line growth have been healthy, there appears to be some concern related to autonomous vehicle technology and its potential impact on key margins.
However, this phase of weakness might be a good accumulation opportunity with ample positives on the horizon. In a recent development, Uber announced the acquisition of parking app SpotHero.
The acquisition serves a key objective of Uber expanding its customer base. SpotHero features will be integrated into the Uber app and will help “customers to find parking at more than 13,000 garages, lots and valets across more than 400 cities in the US and Canada.” Uber will also leverage this acquisition to allow its paid Uber One subscription members to get parking benefits. The acquisition therefore seems to be value accretive in the long term.
About UBER Stock
Headquartered in San Francisco, Uber is the developer and operator of proprietary technology for the mobility sector. Uber has a global presence and operates through three segments: Mobility, Delivery, and Freight.
For FY25, Uber was operating at a 15 billion annual trip run rate with 202 million monthly active users. FY25 was also the fifth consecutive year of more than 20% annual gross bookings growth.
On Feb. 4, Uber reported Q4 2025 earnings and, for FY25, a revenue and adjusted EBITDA of $52 billion and $8.7 billion. For the same period, the company’s free cash flow was $9.8 billion, which implies a free cash flow conversion of 112%.
Even with relatively positive business developments, UBER stock has corrected by 22% in the last six months. This seems like a good buying opportunity as Uber targets being the largest facilitator of autonomous vehicle trips in the world by 2029.
Healthy Growth Likely to Sustain
An important point to note is that Uber reported cash and short-term investments of $7.6 billion as of December 2025. Further, for FY25, the company reported operating cash flow of $10.1 billion. A strong balance sheet and robust cash flows allow Uber to continue investing in platform innovation. At the same time, more strategic acquisitions are likely that strengthen the company’s customer base and global presence.
On the autonomous vehicle front, there seems to be good progress. Besides multiple cities in the United States, Uber AV is live in Abu Dhabi, Dubai, and Riyadh. The company is planning expansion in other international cities like London, Madrid, and Zurich. With strong partnerships for hardware, self-driving technology, and fleet management, it’s likely that the AV business will scale up significantly in the next few years. Dara Khosrowshahi, the company’s Chief Executive Officer & Director, believes that AV will “unlock a multi-trillion-dollar opportunity for Uber.”
A strong global presence is another catalyst for growth. Uber has a strong presence in markets like India and Brazil. These are low-fare markets but have immense potential for growth. Additionally, it’s worth noting that EMEA was the company’s fastest-growing delivery region in 2025.
What Analysts Say About UBER Stock
Given the ratings of 51 analysts, UBER stock is a consensus “Strong Buy.” While 37 analysts assign a “Strong Buy” rating to UBER, three analysts opine that the stock is a “Moderate Buy.” Further, 10 analysts believe that the stock is a “Hold.” Finally, on the bearish side, one analyst has a “Strong Sell” rating.
Based on these ratings, analysts have a mean price target of $106.27 currently, which would imply an upside potential of 41%. Further, the most bullish price target of $150 suggests that UBER stock could rise as much as 99% from here.
It’s worth noting that a majority of analysts have a “Strong Buy” rating, and a key reason seems to be valuation. UBER stock trades at a forward price-earnings ratio of 21.8. While analysts expect earnings de-growth in FY26, it’s expected that earnings growth will be strong at 26.35% in FY27. Therefore, with a meaningful correction from 52-week highs, UBER stock seems attractive.
On the date of publication, Faisal Humayun Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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