Uber Stock Forecast 2024, 2025 & Beyond: Can It Fend off the Rivals?

Uber (UBER) may have revolutionized the travel industry, but its stock price has been extremely volatile over the last few months.

The Uber stock price hit an all-time high earlier this year, before tumbling when the company announced a net loss for the first quarter.

But what happens now? Will UBER stock recover lost ground, and how does it plan to stay ahead of industry rivals that have started to emerge?

In our Uber stock forecast for 2024, 2025, and beyond, we look at the company’s recent results and analysts’ predictions for the future of UBER shares.

Table of Contents Table of Contents

1. Key Takeaways
2. Summary of the Latest Uber Stock Predictions
3. Uber Stock Analysis: How The UBER Stock Has Performed
4. The Latest Uber News & Key Drivers To Consider
5. Uber Stock Forecast: Analysts' Views
6. Uber Stock Predictions: Where Will The UBER Price Go Next?
7. The Bottom Line: Should I Invest in Uber?
8. FAQs
9. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. Summary of the Latest Uber Stock Predictions
3. Uber Stock Analysis: How The UBER Stock Has Performed
Show Full Guide
4. The Latest Uber News & Key Drivers To Consider
5. Uber Stock Forecast: Analysts' Views
6. Uber Stock Predictions: Where Will The UBER Price Go Next?
7. The Bottom Line: Should I Invest in Uber?
8. FAQs
9. References

Summary of the Latest Uber Stock Predictions

Uber Stock Analysis: How The UBER Stock Has Performed

Uber has transformed the travel industry, and its remarkable success has rewarded investors who played a part in its meteoric rise.

The Uber stock price has risen 65% over the past year from $44.36 to $73.53, as the market closed on July 11, 2024.

However, that headline increase doesn’t tell the full story, as UBER stock hit an all-time high of $81.39 on February 15, 2024, according to MacroTrends.

That spike was triggered by Uber announcing its first-ever stock buyback and giving bullish predictions about its growth.

At the time, Prashanth Mahendra-Rajah, its chief financial officer, declared:

“Today’s authorization of our first-ever share repurchase program is a vote of confidence in the company’s strong financial momentum.”

Unfortunately, the UBER stock price tumbled in early May when the company announced a net loss of $654 million for the first quarter.

The Latest Uber News & Key Drivers To Consider

So, what is the latest Uber news that is likely to have an impact on the stock price?

Taiwan Expansion

Uber reached an agreement in May to buy Delivery Hero’s Foodpanda delivery business in Taiwan for $950 million in cash.

The deal, which is subject to regulatory approval, is targeted to be finalized during the first half of 2025.

In addition, the two companies have agreed to Uber purchasing $300 million in newly issued ordinary shares of Delivery Hero.

Pierre-Dimitri Gore-Coty, senior vice president of delivery at Uber, said Taiwan was a “fiercely competitive market” where online food delivery was still only a small part of the landscape.

First Quarter Results

In early May, the company reported first-quarter results for the three months ended March 31, 2024.

It revealed gross bookings grew 20% year-over-year in the first quarter to $37.7 billion, while revenue was up 15% to $10.1 billion.

However, the company did suffer a net loss of $654 million, attributable to Uber Technologies. This included a $721 million net headwind (pre-tax) due to net unrealized losses related to the revaluation of Uber’s equity investments.

Prashanth Mahendra-Rajah, Uber’s CFO, said: “Our multi-year growth framework is on track, with audience up 15% and frequency up 6% in Q1.”

He also pointed out that Uber set a new quarterly record for Adjusted EBITDA, which grew 82% year-over-year and generated free cash flow of $4.2 billion over the trailing twelve months.

Looking ahead, the company anticipates gross bookings of $38.75 billion to $40.25 billion in the second quarter, which represents 18% to 23% year-over-year growth.

Uber Stock Forecast: Analysts’ Views

A key part of our Uber stock forecast is finding out how industry observers view the stock. Are they optimistic about its prospects or do they have concerns?

Here are some Uber stock predictions from analysts:

Susannah Streeter, head of money and markets at Hargreaves Lansdown, believes competition could provide the toughest test.

She told Techopedia:

“Uber has found it harder than expected to defend its dominant position with rivals like Lyft swerving in to take chunks of business. Lyft, with a new CEO at the helm has been revving up its engines and gaining market share helped by its shorter wait times and competitive fares.”

Streeter acknowledged that the company had run into problems over recent months.

“Uber posted a surprise net loss, partly due to unrealized losses related to the revaluation of its investments, but it also missed expectations for first-quarter gross bookings, indicating the total value of transactions on the platform, a number which is closely watched,” she said.

However, she also highlighted potential positives.

“There is still significant potential ahead given Uber’s geographic expansion around the world, including in India, where it now has more than a million drivers,” she said. “Uber’s subscription models present an opportunity for significant deep recurring revenues.”

Streeter believes the Uber One pass, which offers a number of free UberEats deliveries, discounts on rides, and other promotions, increases cross-selling opportunities and helps Uber “stretch its tentacles” across multiple services.

“Uber is also harnessing AI technologies, enabling it to forecast the level of ride requests, for example, across geographical locations,” she added.

According to Danni Hewson, head of financial analysis at AJ Bell, the biggest question is: what exactly is Uber?

She told Techopedia:

“In many ways it appears to have a lot of similarities with consumer favorite Amazon in that you can’t neatly put it into a box.”

Like Amazon (AMZN), Hewson believes much of its potential revenue increase could come from its ability to integrate more advertising on its platforms.

“While there are significant headwinds to consider, not least the lagging impact of higher borrowing costs on its consumer, there are also potential gusts of positive momentum from events like the summer Olympic games,” she said.

Hewson noted that the company “appears relentless” in creating smart new ways to engage with users, including an experiment in the US that offered car users $1,000 to ditch their wheels for a month.

“Its last set of results delivered a bit of a murky picture and there will be ongoing concerns about driver relationships, regulation and cost pressures,” she said. “However, share price momentum over the last year has been strong and revenue growth is also expected to continue apace.”

Malik Ahmed Khan, equity analyst at Morningstar, currently has an $80 fair value Uber price target in place, based on its strong recent financial results.

“As in previous quarters, we view Uber as a firm on top of its game, executing strongly on its business model while posting year-over-year growth in bookings, audience, frequency, and profitability,” he wrote in his most recent Uber stock forecast.

He is also optimistic that a leaner operation, along with growth in gross bookings and revenue, will lead to 20%-40% average annual adjusted earnings growth over the next three years. Khan added:

“With shares selling off after the earnings report, likely due to the financial results not meeting near-term investor expectations, we view the stock as undervalued relative to our unchanged fair value estimate.”

Uber Stock Predictions: Where Will The UBER Price Go Next?

The Uber stock price has soared 220% over the past two years but are analysts expecting it to increase over the next 12 months, or has it already reached a ceiling?

Alternatively, is Uber a buy, hold, or sell? The stock is a ‘moderate buy,’ according to the views of 32 Wall Street analysts compiled by MarketBeat. An overwhelming 30 see it as a ‘buy,’ while two have ‘hold’ recommendations in place.

The consensus view is that the Uber stock price will rise 14.8% to $84.41 over the coming year, although predictions range from $55 to $100.

TipRanks has UBER stock as a ‘strong buy,’ based on the views of 31 analysts.

Their consensus Uber stock forecast 2025 ?is that the price could rise 26.94% to $87.93 over the next 12 months.

The following table shows the latest analysts’ Uber stock predictions.

Meanwhile, the algorithmic forecasting of WalletInvestor has even better news. It predicts the stock could soar to $104.65 over the coming year.

Although an Uber stock forecast for 2030 is regarded as too far into the future, the site’s five-year Uber prediction is for the price to reach $237.30.

Note that analysts’ and algorithm-based projections might prove to be wrong.

The Bottom Line: Should I Invest in Uber?

There’s no denying that Uber is one of those rare disruptor businesses that emerge and forever change their particular industry sector.

However, first-mover success brings its own challenges in the form of exceeding analysts’ expectations and trying to keep ahead of new arrivals.

FAQs