Assessing Uber Technologies (UBER) Valuation After Expanded Kroger Rollout And Renewed Analyst Optimism

Uber Technologies (UBER) just expanded its partnership with Kroger, adding nearly 2,700 Kroger Family stores to Uber Eats, Uber, and Postmates. This move broadens Uber’s grocery delivery reach nationwide.

See our latest analysis for Uber Technologies.

At a share price of US$83.72, Uber has seen a 5.56% 1 month share price return but a 9.21% 3 month share price decline, while its 1 year total shareholder return of 23.59% points to longer term momentum. Recent analyst attention and the expanded Kroger rollout may be helping to sustain this.

If the Kroger partnership has you thinking about where else delivery and mobility platforms could head next, it might be worth checking out high growth tech and AI stocks as a source of fresh ideas.

With Uber trading at US$83.72 and flagged as having an intrinsic discount of about 55%, yet carrying an “Affordable Growth” label and plenty of bullish analyst attention, you have to ask: is this a genuine opportunity, or is the market already pricing in the next leg of growth?

Most Popular Narrative: 24.4% Undervalued

With Uber’s fair value estimate sitting around US$110.72 against a last close of US$83.72, the narrative points to a sizeable valuation gap and leans heavily on long term business drivers to justify it.

Significant investments and accelerating partnerships in autonomous vehicles (AVs) and electrification (with Waymo, Lucid, Nuro, etc.) position Uber to benefit from secular industry shifts. Successful AV commercialization could transform long-term cost structures and profitability, which may boost future earnings potential. Progressive scaling of high-margin ancillary revenue streams such as advertising, data and technology platform externalization, and Uber One loyalty is supporting margin expansion and enhancing long-term earning power.

Read the complete narrative.

Curious how rising revenue expectations, thinner margins, and a higher future earnings multiple all fit together? The most followed narrative lays out a detailed playbook for Uber’s long term profit engine, including what has to happen across AV, AI, and membership economics to support that higher fair value.

Result: Fair Value of $110.72 (UNDERVALUED)

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

However, there are clear pressure points, including uncertainty around autonomous vehicle profitability and ongoing regulatory and labor changes that could weigh on margins and challenge today’s fair value case.

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

Build Your Own Uber Technologies Narrative

If you are not fully convinced by this view or simply prefer to test the numbers yourself, you can build a custom narrative in minutes, starting with Do it your way.

A great starting point for your Uber Technologies research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

Ready for more stock ideas beyond Uber?

If you stop at Uber, you could miss other opportunities that fit your style. Take a few minutes to scan fresh ideas and see what stands out.

• Spot potential value by checking out these 872 undervalued stocks based on cash flows that align with your return expectations and risk comfort.
• Explore the AI theme by reviewing these 24 AI penny stocks that are tied to identifiable business models, not just hype.
• Strengthen your income watchlist by scanning these 13 dividend stocks with yields > 3% that may support more consistent cash flows from distributions.

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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