Uber Technologies Inc UBER shares are up on Thursday, despite the company reporting an earnings miss for the fourth quarter.
The company reported its quarterly results amid an exciting earnings season. Here are some key analyst takeaways.
Analyst Doug Anmuth reiterated an Overweight rating while cutting the price target from $95 to $90.
Uber Technologies reported mixed results, with EBITDA in-line with consensus “rather than the usual high-end beat,” Anmuth said in a note. Underlying fundamentals remained strong in the fourth quarter, with MAPC (monthly active platform consumers) growth of 14% year-on-year and frequency growth of 4%, “while driver supply and merchant selection continued to improve,” he added.
The company is witnessing a mix-shift to modes with lower unit economics and has plans to invest in building the AV (autonomous vehicle) use case, the analyst stated. “We are encouraged by Uber’s approach in building out AV supply on the platform and think the company should benefit as the AV market scales toward what could be a $1T in the US alone,” he further wrote.
Analyst Justin Post reaffirmed a Buy rating while raising the price target from $93 to $95.
Uber reported bookings and revenues at $44.2 billion and $12.0 billion, ahead of Street expectations of $43.5 billion and $11.8 billion, respectively, Post said. EBITDA came in slightly short, as the company invested in long-term growth during the quarter, he added.
Uber One subscribers grew to 30 million globally, up 5 million sequentially, while Uber Teen rides grew 50% quarter-on-quarter and Uber for Business grew 50% year-on-year, the analyst stated. The quarter indicated that the uptick in the company’s marketing spend in the fourth quarter “had positive ROI,” he further wrote.
Analyst Eric Sheridan maintained a Buy, while lifting the price target from $96 to $97.
Uber’s gross bookings guidance on an as reported basis for the first quarter was slightly weaker than expected, but factors in a currency headwind of 550 basis points, Sheridan said.
While investing in growth across products and geographies, management expressed their commitment to compounding adjusted EBITDA at a “high 30% to 40%” CAGR through 2026, “with healthy FCF conversion (90%+) and returning capital to shareholders over time ($7bn authorization with $4.25bn remaining following $1.5bn accelerated share repurchase program in January),” the analyst wrote.
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Analyst Justin Patterson reiterated an Overweight rating and price target of $85.
Uber’s gross bookings grew by 21% year-on-year to $44.2 billion, Patterson said. Management guided to gross bookings between $42.0 billion and $43.5 billion, the midpoint of which was below Street’s estimates of $43.5 billion, he added.
Uber One members grew by five million sequentially and by 60% year-on-year, reaching 30 million, the analyst stated. He raised the EBITDA estimates for 2025 and 2026 to reflect “a mix shift to mobility and delivery vs. freight bookings.”
Analyst Bernie McTernan reaffirmed a Hold rating and price target of $90.
Affordability is likely to be “a major push” for Uber in 2025, McTernan said. The company had been focusing on supply over the past few years, but “appears to be shifting back towards demand, with affordability the primary objective,” he added.
“On U.S. Mobility specifically, UBER expects UberX prices to be up only marginally in ’25E, benefiting from better supply, and less inflationary pressure from used car prices, gas and insurance,” the analyst wrote. Affordability should also be helped by product evolution, he further stated, citing UberX Share, Price Lock, and Uber One.
Analyst Deepak Mathivanan maintained an Overweight rating and price target of $80.
“At a segment level, mobility bookings growth was stable at +24% y/y ex-FX, driven by accelerating trends in the U.S.,” Mathivanan wrote in a note. Uber Eats delivered another strong quarter, with accelerating bookings growth of 18% year-on-year, he added.
Rides EBITDA margin contracted sequentially by 20 basis points, “due to targeted investments in growth initiatives,” the analyst stated. Although AV narratives are driving the stock, “the company is executing well on several key product and partnership initiatives,” he further said.
Analyst Andrew Boone reiterated a Market Perform rating on the stock.
Uber Technologies reported a strong quarter, with both mobility and delivery gross bookings up 18% year-on-year, ahead of consensus, Boone said.
Uber “talked down” the threat of AVs disrupting the ride-sharing market, “highlighting the challenges of commercializing this technology” and that the AV market’s potential opportunity over the next five years is only 10%-15% of the company’s current Mobility market, the analyst stated. “Our view is that AV technology will be commoditized over time and that the value will accrue to the network,” he further wrote.
UBER Price Action: Shares of Uber Technologies had risen by 6% to $68.35 at the time of publication on Thursday.
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• Uber Stock Tumbles, Analyst Lists Autonomous Vehicles As ‘Key Risk’
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