A Look at Uber Technologies’s Valuation After $300 Million Lucid Robotaxi Deal Expands Autonomous Ambitions

If you’re an investor in Uber Technologies (UBER), this week’s headlines were hard to miss. Uber just announced a $300 million investment in Lucid Group, teaming up to launch a new generation of autonomous robotaxis built on Lucid’s Gravity SUV platform. The plan is to introduce up to 20,000 of these vehicles globally over the next six years. It’s a clear sign Uber is making a real push to ramp up its autonomous mobility ambitions, and it is moving fast to secure a bigger stake in the future of ride-hailing.

This aggressive move comes on the back of consistent growth in Uber’s core mobility business and a set of strategic partnerships ranging from restaurant financing to bringing new retail categories to Uber Eats. Over the past year, shares are up 34%, and momentum has accelerated in recent months, with Uber finishing 17% higher over the past three months and up 55% year to date. With the Lucid partnership, the company is aiming to expand its platform well beyond traditional ride-hailing, which could shift long-term expectations for revenue growth and operating margin improvements.

But after this run-up, is Uber stock a compelling opportunity, or is the market already factoring in these next big steps in autonomous mobility?

Most Popular Narrative: 34% Overvalued

According to WallStreetWontons, the most widely followed narrative sees Uber as significantly overvalued by 34% based on their calculations and key assumptions around the company’s future performance.

Uber has several key products and services that could significantly impact its sales and earnings. Ride-Hailing Services remain Uber’s core revenue generator. The company continues to innovate and expand its ride-hailing services globally.

Could Uber’s current price be overlooking a crucial piece of the puzzle? A few bold projections about growth and margins fuel this narrative’s valuation, and the numbers may surprise you. Wondering which powerful drivers and financial models led to this price call? Dive in and discover what’s really shaping Uber’s fair value behind the scenes.

Result: Fair Value of $72.92 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, regulatory changes or a slowdown in consumer demand could quickly upend these expectations and challenge Uber’s current valuation outlook.

Find out about the key risks to this Uber Technologies narrative.

Another View: What Does the SWS DCF Model Say?

While the first valuation concluded Uber is overvalued using traditional market comparisons, our DCF model actually finds the stock could be undervalued. It suggests a different story about Uber’s underlying fundamentals. Which view captures the real opportunity?

Look into how the SWS DCF model arrives at its fair value.

Stay updated when valuation signals shift by adding Uber Technologies to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Uber Technologies Narrative

If you have a different perspective or want to explore Uber’s financials in your own way, you can easily build your own take in just a few minutes with our tools. Do it your way

A great starting point for your Uber Technologies research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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