Uber: The Threat From Robotaxis Is Overblown And Uber Looks Inexpensive
Summary
- Uber has transformed into a highly profitable, free cash flow powerhouse, with strong double-digit growth expected in both EPS and revenue for years ahead.
- Concerns about robotaxis, including Tesla’s entry, are overblown; Uber’s partnerships and platform integration with autonomous vehicles position it as a winner in the AV era.
- Uber’s scale, global reach, and network effects create a significant moat, making it unlikely for new entrants to erode its dominant market share or profitability.
- Uber trades at an attractive valuation relative to its growth, continues aggressive buybacks, and I am bullish on its outlook for the second half of 2025.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of TSLA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. The investments and strategies discussed within this article are solely my personal opinions and commentary on the subject. This article has been written for research and educational purposes only. Anything written in this article does not take into account the reader’s particular investment objectives, financial situation, needs, or personal circumstances and is not intended to be specific to you. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters. Just because something may be an enticing investment for myself or someone else, it may not be the correct investment for you.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.