Uber Technologies (NYSE:UBER) ranks fourth on our list of President Trump and Nancy Pelosi Portfolio: Top 4 Picks. Bill Ackman’s Pershing Square holds the stock too, and we covered the two stocks that Nancy Pelosi and Bill Ackman are both betting on.
What Uber Reported in the Latest Quarter
Uber reported its second-quarter results in August. Gross bookings grew 22% year over year, the fourth straight quarter above 20%. Delivery and Freight bookings each grew 25%, and Mobility bookings grew 20%. Non-GAAP earnings per share rose 35%, and trailing 12-month free cash flow hit a record. Shares fell after the report because the third-quarter earnings outlook came in a few cents below expectations.
Bull Case
Uber has a demand advantage because more than 200 million people use its app each month. That is why bulls think autonomous vehicles will end up as Uber partners. Uber already has deals with more than a dozen AV companies. Delivery gives it a second source of growth, and the pending Delivery Hero acquisition brings in a market leader in the Middle East, Latin America and Asia Pacific.
London-based Fundsmith added Uber to its Equity Fund as a new position in the second quarter. See why Fundsmith calls Uber a compelling stock to own.
Photo by Zhuo Cheng you on Unsplash
Bear Case
The biggest risk is that robotaxi operators become rivals. Waymo, Zoox and Tesla all run their own services, and Waymo’s three-year Phoenix partnership through Uber’s app ended in mid-2026. If the large operators keep their cars off Uber’s app, the company may need a new plan for autonomous rides. Lower robotaxi prices could also pressure Uber’s human-driver model. Videos of Tesla Cybercabs hailing rides on their own set off alarm bells in September. See which insider trades to watch after the Cybercab scare.
Valuation
Uber trades at about 21 times forward non-GAAP earnings. That is below its five-year average of about 30 times and a little above the sector median of about 19 times. Analysts expect earnings per share to grow about 30% in 2026 and 42% in 2027. The forward PEG ratio, which pairs the P/E with growth, is 0.76 against a sector median of 1.46. Analyst consensus rates the stock a Buy. Montaka Global Investments bought Uber after a pullback in the first quarter. Read their thesis here.
Can Uber Keep Growing?
Analysts expect Uber to keep growing earnings at a fast pace through 2027, and gross bookings have grown more than 20% for four straight quarters. The answer depends on whether the large robotaxi operators keep using Uber’s app. Management expects to announce a new AV partner for the Phoenix market soon, and that deal will show how much leverage Uber has. Uber Technologies has the rider base that robotaxi makers need, and the next few partner deals will show whether that is enough.
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