Uber Technologies, Inc. (UBER): A Bull Case Theory

We came across a bullish thesis on Uber Technologies, Inc. (UBER) on Capitalist Letters’ Substack. In this article, we will summarize the bulls’ thesis on UBER. Uber Technologies, Inc. (UBER)’s share was trading at $82.79 as of 3^rd June. UBER’s trailing and forward P/E were 14.45 and 30.03 respectively according to Yahoo Finance.

Uber is one of those rare generational companies—dominant in its industry, powered by robust fundamentals, and still sitting on a long runway for growth. Its evolution from UberCab to UberX unlocked exponential network density, a powerful lever for two-sided marketplaces. By enabling anyone with a qualifying car to drive, Uber triggered a self-reinforcing flywheel of supply and demand, constantly optimized through real-time algorithms that improve with each of the 100 million daily ride and delivery requests.

These indirect network effects—formally studied by Rochet and Tirole—build an insurmountable moat that subscale rivals cannot breach. Uber’s infrastructure advantage also extends into Uber Eats and Uber Freight, with each new vertical enhancing cross-platform efficiencies. Contrary to comparisons with Airbnb’s slowing growth, Uber still operates in just 70+ countries and has yet to penetrate large regions like Eastern Europe, Africa, and Southeast Asia. As these markets develop and regulatory barriers fall, Uber is poised to enter not with a single service, but a full-stack ecosystem.

Moreover, its delivery services—across food, groceries, alcohol, and tools—are still early in their lifecycle but strategically designed to maximize network utility. Autonomous vehicles add further upside: they solve the utilization mismatch of human drivers, offering higher productivity and drastically improving EBITDA.

Already in Austin, Waymo robo-taxis on Uber’s platform outperform nearly all human drivers. Despite this, the market assigns Uber a low terminal value, pricing in near-total disruption by robo-taxis. But even in that future, Uber’s strength as the largest demand aggregator remains vital. Aggregation will matter more than who owns the fleet—and that’s Uber’s edge.

In our previous coverage of Uber Technologies, Inc. (UBER) we summarized a bullish thesis on the company by Quality Equities on Substack in March 2025 which projected over 15% annualized returns driven by profitability and AV upside—validated by a 9% stock gain since. The updated view deepens the case, framing Uber as a rare network-effect compounder with expanding global TAM, unmatched scale, and long-term AV aggregation advantage.

Uber Technologies, Inc. (UBER) is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 145 hedge fund portfolios held UBER at the end of the first quarter which was 166 in the previous quarter. While we acknowledge the risk and potential of UBER as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.