TheBadPlaceyahoo news | Uber Bears Are Missing the Story and Our $123.73 Price Target Shows Why
Uber’s shares are trading around $73, well below their 52‑week high of $101.99 and down 11.6% year‑to‑date, yet the company delivered a record $52.01 billion in 2025 revenue (up 18.3% YoY) and a $2.80 billion free‑cash‑flow surge in Q4 (up 65%). 24/7 Wall St. projects a $123.73 price target – roughly a 71% upside – and assigns a BUY signal with 90% confidence. The model’s optimism stems from accelerating earnings, a massive autonomous‑vehicle (AV) partnership with Rivian ($1.25 billion for 50,000 robotaxis in 15 cities by end‑2026), and strong delivery‑segment momentum (Adjusted EBITDA up 40% YoY).
Fundamentally, Uber’s operating income jumped 130% YoY in the fourth quarter and the business is outpacing the stock’s decline. The Rivian deal gives tangible scale to the AV rollout, while delivery margins continue to expand and management has raised its advertising‑penetration ceiling above the prior 2% estimate. Analyst consensus is overwhelmingly bullish – 47 buy/strong‑buy ratings versus a single sell – supporting a higher bull scenario that envisions a $137.03 target (five‑year upside to $314.78).
Potential headwinds include a rise in long‑term debt to $10.5 billion, higher insurance reserves, and zero growth in the Freight segment. Risks such as worker‑classification legislation or adverse AV partnership terms could pressure Uber’s take rate, while a slowdown in rideshare demand would also be detrimental. Even so, at roughly 15× trailing earnings the stock appears undervalued; if AV deployments hit schedule and Q1 2026 bookings meet guidance, the price target could be sustained, whereas downside pressure would likely cap the stock near the bear‑case estimate of $103.76.
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