Uber (UBER) Stock Forecast & Price Target

Uber Technologies is poised for significant financial growth, with active drivers increasing by 26% year-over-year in the fourth quarter, which supports demand outpacing supply and a projected EBITDA rise of 30-40% for 2025. Furthermore, the expansion of the Uber One membership base, which grew 60% year-over-year to reach 30 million members, is anticipated to drive additional incremental revenue, enhancing consolidated margins and boosting customer retention. The company’s pricing strategy for UberX, coupled with manageable inflationary pressures on costs such as insurance and fueled by favorable driver supply, positions Uber favorably in the competitive rideshare and delivery markets.

The analysis highlights several concerning financial metrics regarding Uber Technologies, the most significant being the underperformance in rides revenue, which has not rebounded to pre-pandemic levels, coupled with disappointing contributions from the delivery sector. Additionally, the company’s EBITDA margins are projected to be lower than previously anticipated, and the marginal decline in rides EBITDA margin suggests challenges stemming from investments in growth initiatives amidst fluctuating demand patterns. Furthermore, ongoing competition in new verticals and potential capital requirements related to the deployment of autonomous vehicles signal a challenging landscape that could further pressure profitability moving forward.