UBER
🚗 Uber is the leader in mobility and delivery with 170 million monthly customers.
🎯 Aims for 30% annual EPS growth driven by revenue, margin expansion, and buybacks.
🌐 Significant operating leverage and margin expansion potential.
🛡️ Diversification and autonomous vehicle partnerships mitigate risks.
@adriarivero:
“Pershing Square invested $2 billion in Uber in the first quarter of 2025, acquiring 30.30 million shares, which drove the stock to a three-month high. Ackman defines Uber as the leader in mobility and delivery, with 170 million monthly customers and 8 million drivers in 70 countries. Uber has $160 billion in bookings with international growth objectives. The company aims to grow its earnings per share (EPS) by 30% annually, driven by 15-20% revenue growth, margin expansion, and occasional share repurchases. Ackman believes Uber is trading at a low 29 times P/E ratio due to concerns about autonomous vehicles. Pershing Square expects the stock to double in three to four years, viewing Uber as a high-quality business with growing network effects and increasing consumer usage. Growth is expected from new customers, increased usage from existing customers, expansion in mature markets, new geographies, and new product launches. Uber has significant operating leverage and margin expansion potential, with only a 3% annual increase in headcount compared to a 20% annual increase in bookings since 2019. The management team expects a 30-40% compound annual growth rate in adjusted EBITDA due to margin expansion, with EBITDA growing faster than revenues. The main risk comes from the emergence of autonomous vehicles, but Ackman believes Uber will partner with autonomous vehicle companies, as replicating Uber’s platform is economically irrational. Uber already has 14 partners in autonomous mobility, delivery, and freight. Diversification, with 50% of bookings from delivery, which is less affected by autonomous vehicles, and more than 50% of mobility international, where autonomous vehicle adoption will be slower, also mitigates risks. Ackman believes mass adoption of autonomous vehicles in the U.S. will take years due to technological advancements, regulatory caution, and infrastructure investments.”
Watch the exact part of the video where Adrià Rivero talks about Uber here:
Watch the video on YouTube.
Read more articles featuring the most recent analysis of Uber (UBER) at this link: UBER stock.
