In this article, I will do a deep dive into Uber stock. Through both fundamental and technical analysis, I will give my thoughts on whether or not it is a good investment in the short and long term.
Fundamental Analysis of Uber:
Lets first dive into Uber's Q3 earnings report.
Facts:
Ubers growth remains strong as they reported trip growth of 22% year-over-year and Gross Bookings increased 21% year-over-year.
Dara Khosrowshahi, CEO of Uber, said that "...growth kicked into high gear in Q3, marking one of the largest trip-volume increases in the company’s history." To the excitement of many, he also reinforced that uber will continue work to harness the "transformative potential of AI and autonomy."
Despite this record growth and seemingly exhilarating future, Uber stock took a measurable hit of nearly 9.5%. This drop can be mainly attributed to legal charges which ate into the company's profitability.
Further, Khosrowshahi also reiterated that autonomous vehicles (AV) are not currently profitable. The CEO said in a recent interview that he "expect[s] that AV won’t be profitable for a few years going forward." This likely disappointed many investors and contributed to the decrease in stock price.
Khosrowshahi, however, emphasized that this isn't a cause for concern. The pattern of a new product being introduced to the market and originally being unprofitable is nothing new. It takes time to build out a new system and invest in its development. However, over time these investments will increase consumer demand and as a result, willingness to pay.
Takeaways:
Fundamentally, Uber is in a very favorable position. Earnings remain strong and barring any more legal charges, the company's profitably will continue to grow.
Further, the current price to earnings (p/e) ratio is incredibly low, sitting around 12 at the time of writing. Regardless of any headwinds with competition from Tesla or other AV makers, this p/e is far too low. I personally believe a fair valuation for Uber stock is over $150, pushing its p/e closer to 20 (which is still fairly low).
Many people think Tesla's Robotaxi will be able to outcompete Uber. Though this is a long term possibility, it is not at all close to materializing yet. Multiple Robotaxi's have crashed and Musk's visions of a Robotaxi future have been riddled with hurdles, from regulatory roadblocks to technical issues.
From a fundamental standpoint, Uber is a strong buy.
Technical Analysis of Uber stock:
Since mid May, $UBER has been relatively stagnant, hovering around its 50 day SMA while slowly increasing. After releasing Q3 earnings however, $UBER has fallen below the 50 day SMA. However, when looking at previous trends, when $UBER consolidates like it has been, a sharp drop below the 50 day SMA is often the catalyst needed to spur a rally. Below I have left some examples from 2025 alone.
It's very possible that Uber stock will retreat a little deeper into the 50 day SMA but I believe it will soon bounce. Though history doesn't always repeat itself, the strength of Uber's fundamentals paired with this sharp drop below the 50 day SMA gives me confidence that Uber stock will be able to break out of the rut that it's been in for the past few months. In the short term, I think Uber is a strong buy but I recommend to exercise caution in the long run as Robotaxi concerns are very real.