UBER Stock Overview
Uber Technologies, Inc. develops and operates proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific.
Uber Technologies Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$26.50|
|52 Week High||US$48.88|
|52 Week Low||US$19.90|
|1 Month Change||-7.86%|
|3 Month Change||24.18%|
|1 Year Change||-43.68%|
|3 Year Change||-10.68%|
|5 Year Change||n/a|
|Change since IPO||-36.25%|
Recent News & Updates
Uber Vs. Inflation: There's Only One Winner For Now
Summary This is the first time Uber is dealing with sky-high inflation since its inception. To understand whether the demand for ridesharing will be negatively impacted by inflation, we need to find answers to three important questions. In this article, I will discuss my findings about the expected impact of inflation on the demand for ridesharing and the supply of drivers. Uber Technologies, Inc. (UBER) has been part of the model growth portfolio at Leads From Gurus since its inception almost two years ago, and the reason is simple: Uber has what it takes to dominate the global ridesharing industry in the long run, which should open doors for the company to be consistently profitable. By profits, I mean real, hard profits - not positive EBITDA. Before dominating this market segment, Uber will have to overcome the challenges posed by rising inflation in every corner of the world. It is safe to say that Uber does not have any experience in dealing with sky-high inflation as the world did not encounter an inflation problem in the last decade, and Uber was founded in 2009. In this article, I will dig deep into how inflation impacts Uber's ridesharing business - both from a demand and supply perspective - to determine whether the company has what it takes to survive this high inflationary period. Demand-side analysis Will rising prices negatively impact the demand for ridesharing? This is the question that I will try to answer in this segment of the analysis. To form a rational conclusion, we must find answers to a few key questions. Which income group uses ridesharing the most? What are the primary use cases of ridesharing? Is there evidence to suggest Uber has pricing power? Inflation will have an impact on the spending decisions of both low-income earning and high-income earning households, but high-income households are better prepared to weather the onslaught. Rising prices often eclipse the growth in wages, and low-income households generally earn the bulk of their income from wages and transfers. On the other hand, high-income households earn a meaningful portion of their income through self-employment and investment income, and these income sources are more likely to keep pace with inflation in comparison to wages. For this reason, low-income households generally feel the heat much earlier than high-income households in an inflationary period. As illustrated below, this is true for both developed and emerging markets. Exhibit 1: Sources of household income Brookings Institution Uber, according to multiple survey results conducted in 2017, 2018, and 2019, primarily caters to high-income households although its ridesharing services are used by users representing all income brackets. A survey conducted by Pew Research Center in 2019 found that individuals with a household income of $75,000+ are twice as likely to use Uber in comparison to individuals with a household income of lower than $30,000. A survey conducted by Gallup in 2018 found that individuals earning more than $90,000 or more annually are using Uber's ridesharing services much more frequently than lower-income earning individuals. Exhibit 2: Gallup survey results (2018) Gallup Because high-income households represent the primary target market for ridesharing services, there is reason to believe that the demand for ridesharing services will not be immediately impacted by high inflation. Things, however, can change dramatically depending on the severity of the fall from grace. If we enter a deep recession that lasts a few years, the demand for ridesharing will take a meaningful hit. To form a rational conclusion, we should not solely rely on the income bracket of Uber users. Rather, we need to find answers to the other two questions highlighted earlier. Now that we have established that high-income households use Uber the most, let's move forward to understand the primary use cases of ridesharing. Before that, it helps to understand some more granular demographics of Uber users. According to findings of Global Web Index in 2017, the young generation is using ridesharing services the most in the United States. Although this survey was conducted five years ago, I believe these results are still valid as several other surveys have found that people over 50 are still hesitant to use ridesharing services as frequently as their younger peers. Exhibit 3: The demographics of American Uber users (2017) Global Web Index Since young users dominate the ridesharing industry, we can assume that a meaningful number of riders use ridesharing services for social outings. A couple of surveys confirm the validity of this assumption. According to KeyBanc Capital Markets, social outings are the primary use case for ridesharing. Commuting to work and airport travel are the two major use cases behind social outings. A Statista survey conducted in 2016 found that social hangouts such as parties and dinner outings accounted for 43% of all Uber rides in the United States. Going by these stats, it would be reasonable to conclude that inflation might have an impact on the demand for ridesharing in an inflationary environment as consumer spending on social outings will take a hit as consumers prioritize essential spending. At the beginning of this segment, I highlighted three questions. So far, we have found answers to two questions and these answers give us varying signals of what the future holds for Uber. Let's now move on to discuss the third factor: does Uber have any pricing power? In the early days of Uber's business, the mission of the company was very simple to understand: drive taxis out of business by charging ultra-low prices for rides. The objective of this analysis is not to comment on this strategy, so I will leave it for my readers to figure out whether that strategy worked well. Today, Uber is looking at profits. The company operates in almost all the major cities across the world and is by far the leading ridesharing company in the world. The company has achieved scale, but profits have not followed. One major reason could be the perceived inability of ridesharing companies to set prices. Charging higher prices from riders was never a popular decision among ridesharing companies since higher prices were thought to take riders away from these platforms. Inflation, however, seems to be changing the playing field. Now that consumers are getting used to paying higher prices for almost everything, Uber has found the freedom to charge higher prices. According to data from Rakuten Intelligence, the cost of an Uber ride has increased by a staggering 92% between January 2018 and July 2021. The below chart by Reuters also confirms that the per-mile cost charged by ridesharing companies in the U.S. has trended upwards in recent years. Exhibit 4: Per-mile ridesharing cost in the United States Reuters Amid these higher prices, let's look at how Uber performed in the second quarter. Gross Bookings hit an all-time high of $291.1 billion in Q2, MAPCs reached an all-time high of 122 million, adjusted EBITDA came well above the guidance at $364 million, and the company reported a record $382 million in free cash flow. Uber seems to be firing on all cylinders despite consistent price hikes in the last few quarters, which is a testament to the pricing power the company is enjoying today. I am not even remotely suggesting that Uber can continue to raise prices without losing customers, but the company, for many years, did not enjoy any pricing power at all, which seems to be changing amid high inflation.
Uber Technologies: Don't Buy This Pullback Yet
Summary Our thesis on Uber Technologies, Inc.'s bottom in June has played out accordingly, as it outperformed the broad market significantly since our previous update. Uber's Q2 earnings release demonstrates that its path toward profitability remains on track, despite the challenging macro environment. However, we surmise that the recent surge is likely unsustainable. Also, its valuation seems more well-balanced now, which has likely reflected its near-term upside. We discuss why we revise our Uber rating from Speculative Buy to Hold. We urge investors to wait patiently for a more attractive entry point. Thesis The post-Q2 market reaction to Uber Technologies, Inc. (UBER) stock didn't surprise us. We deduced in our early July article (Buy rating) that UBER was already bottoming out, as it consolidated robustly along its June lows. Therefore, we upgraded our rating, as we were confident of the de-risked entry-level and the market's pessimism. Consequently, UBER significantly outperformed the SPDR S&P 500 ETF (SPY) toward its August highs. Furthermore, Uber's earnings release corroborated our thesis that its margin improvement remains on track. UBER's growth premium has been predicated on the ability of its platform to drive profitable growth as it scales. However, we believe the battering over the past year is justified, as its valuations were unsustainable at those levels, despite its platform scalability. Following the broad market pullback, UBER has retraced about 13% from its August highs. We believe it's a healthy retracement. We are also confident that UBER has staged its long-term bottom in June. Notwithstanding, UBER's current price action remains well-extended. Therefore, the entry point does not seem robust enough to add exposure at the current levels. Coupled with our assessment of a more well-balanced valuation, we surmise that the reward-to-risk profile is much less attractive than in July. As a result, we revise our rating on UBER from Speculative Buy to Hold. We urge investors to be patient and wait for a more attractive entry level. Expect Further Normalization In Growth Uber gross bookings change % (Company filings) Uber reported gross bookings of $29.08B in Q2, up 32.8% YoY but down from Q1's 35.4%. It also continues a significant moderation in its growth momentum from its peak in FY21. Management's guidance for Q3 suggests that the moderation should continue, with an increase of 27.6% growth at the midpoint of its guidance. In addition, we believe investors should continue to expect further normalization, given its $170B gross bookings target (midpoint) by FY24. Factoring in Uber's Q3 guidance, Uber should post a TTM gross bookings of $110.89B by Q3. Therefore, its FY24 target indicates a CAGR of 20.9%, suggesting that Uber's gross bookings growth should continue to decelerate. Uber adjusted EBITDA margins by segment % (Company filings) Consequently, we believe it's critical for Uber to continue executing well and demonstrate its ability to scale for profitability. Uber's adjusted EBITDA margins for its mobility segment appear to have fallen in Q2 to 21.7%, down from Q1's 24.5%. It's also down from the average of the previous three quarters. However, delivery has continued to drive profitable growth for Uber, as it posted a margin of 3.7%, up markedly from Q1's 1.2%. However, delivery's revenue growth has also normalized further, as it posted an increase of 36.9% in Q2, down from Q1's 44.3%. We believe it's consistent with the post-pandemic reopening, so it's not unexpected. Moreover, the reopening cadence should continue to help mobility's gross bookings growth to stabilize as more workers return to the office and students back to school. CEO Dara Khosrowshahi is also confident about Uber's profitability profile, as he accentuated: The EBITDA margin guidance that we gave you for Q3 shows very, very healthy margins going forward. So we consider incentives and revenue margin a tool. But right now, the trend as it relates to that tool continues to be positive. We are looking forward to Q4 in September, back to school. We're going to have a lot of demand, so we are preparing ourselves for that increase in demand. And so we are going to continue being in the marketplace to make sure that drivers come on to the platform, stay on the platform because Q4 is going to be a great quarter for us, and it's going to be a great quarter for them as well. (Uber FQ2'22 earnings call.) Uber's Profitability Should Continue To Improve Further Uber adjusted gross margins % consensus estimates (S&P Cap IQ) Notably, the consensus estimates (very bullish) project that Uber's adjusted gross margins should have reached their nadir in Q2 before reversing higher through FY23. As a result, it's expected to be instrumental in helping Uber to improve its operating leverage on its platform as it scales further. Therefore, it should help UBER to sustain strong buying sentiments if the company can execute accordingly. Uber revenue change % and adjusted EBITDA margins % consensus estimates (S&P Cap IQ)
|UBER||US Transportation||US Market|
Return vs Industry: UBER underperformed the US Transportation industry which returned -26.5% over the past year.
Return vs Market: UBER underperformed the US Market which returned -21.5% over the past year.
|UBER Average Weekly Movement||9.1%|
|Transportation Industry Average Movement||6.8%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.6%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: UBER is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: UBER's weekly volatility (9%) has been stable over the past year.
About the Company
Uber Technologies, Inc. develops and operates proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. It connects consumers with independent providers of ride services for ridesharing services; and connects riders and other consumers with restaurants, grocers, and other stores with delivery service providers for meal preparation, grocery, and other delivery services. The company operates through three segments: Mobility, Delivery, and Freight.
Uber Technologies Fundamentals Summary
|UBER fundamental statistics|
Is UBER overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|UBER income statement (TTM)|
|Cost of Revenue||US$16.93b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||-5.08|
|Net Profit Margin||-39.38%|
How did UBER perform over the long term?See historical performance and comparison
Is UBER undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 3/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for UBER?
Other financial metrics that can be useful for relative valuation.
|What is UBER's n/a Ratio?|
Price to Sales Ratio vs Peers
How does UBER's PS Ratio compare to its peers?
|UBER PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
ODFL Old Dominion Freight Line
JBHT J.B. Hunt Transport Services
DIDI.Y DiDi Global
UBER Uber Technologies
Price-To-Sales vs Peers: UBER is expensive based on its Price-To-Sales Ratio (2.1x) compared to the peer average (2x).
Price to Earnings Ratio vs Industry
How does UBER's PE Ratio compare vs other companies in the US Transportation Industry?
Price-To-Sales vs Industry: UBER is expensive based on its Price-To-Sales Ratio (2.1x) compared to the US Transportation industry average (0.8x)
Price to Sales Ratio vs Fair Ratio
What is UBER's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PS Ratio||2.1x|
|Fair PS Ratio||3.1x|
Price-To-Sales vs Fair Ratio: UBER is good value based on its Price-To-Sales Ratio (2.1x) compared to the estimated Fair Price-To-Sales Ratio (3.1x).
Share Price vs Fair Value
What is the Fair Price of UBER when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: UBER ($26.5) is trading below our estimate of fair value ($80.89)
Significantly Below Fair Value: UBER is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.
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How is Uber Technologies forecast to perform in the next 1 to 3 years based on estimates from 40 analysts?
Future Growth Score5/6
Future Growth Score 5/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: UBER is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).
Earnings vs Market: UBER is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: UBER is expected to become profitable in the next 3 years.
Revenue vs Market: UBER's revenue (16.3% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: UBER's revenue (16.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: UBER's Return on Equity is forecast to be high in 3 years time (20.2%)
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How has Uber Technologies performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: UBER is currently unprofitable.
Growing Profit Margin: UBER is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: UBER is unprofitable, and losses have increased over the past 5 years at a rate of 3% per year.
Accelerating Growth: Unable to compare UBER's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: UBER is unprofitable, making it difficult to compare its past year earnings growth to the Transportation industry (62.5%).
Return on Equity
High ROE: UBER has a negative Return on Equity (-133.47%), as it is currently unprofitable.
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How is Uber Technologies's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: UBER's short term assets ($8.8B) do not cover its short term liabilities ($8.9B).
Long Term Liabilities: UBER's short term assets ($8.8B) do not cover its long term liabilities ($14.5B).
Debt to Equity History and Analysis
Debt Level: UBER's net debt to equity ratio (67.9%) is considered high.
Reducing Debt: UBER's debt to equity ratio has increased from 63.7% to 126% over the past 5 years.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable UBER has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: UBER is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 20.1% per year.
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What is Uber Technologies's current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Dividend Yield vs Market
|Uber Technologies Dividend Yield vs Market|
|Company (Uber Technologies)||n/a|
|Market Bottom 25% (US)||1.7%|
|Market Top 25% (US)||4.7%|
|Industry Average (Transportation)||1.9%|
|Analyst forecast in 3 Years (Uber Technologies)||0%|
Notable Dividend: Unable to evaluate UBER's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate UBER's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if UBER's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if UBER's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as UBER has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Dara Khosrowshahi (52 yo)
Mr. Dara Khosrowshahi serves as Independent Director of Altimeter Growth Corp. and also serves as an Independent Director of Grab Holdings Limited since March 2018. He is a Non Executive Independent Direct...
CEO Compensation Analysis
|Dara Khosrowshahi's Compensation vs Uber Technologies Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$20m||US$1m|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$12m||US$337k|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$42m||US$1m|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$45m||US$1m|
Compensation vs Market: Dara's total compensation ($USD19.94M) is above average for companies of similar size in the US market ($USD13.04M).
Compensation vs Earnings: Dara's compensation has increased whilst the company is unprofitable.
Experienced Management: UBER's management team is considered experienced (4.5 years average tenure).
Experienced Board: UBER's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: UBER insiders have only sold shares in the past 3 months.
Recent Insider Transactions
|05 Aug 22||SellUS$1,500,469||Jill Hazelbaker||Individual||46,875||US$32.01|
|04 Aug 22||SellUS$2,745,864||Derek West||Individual||87,841||US$31.86|
|06 May 22||BuyUS$5,345,520||Dara Khosrowshahi||Individual||200,000||US$26.73|
|15 Nov 21||BuyUS$8,984,540||Dara Khosrowshahi||Individual||200,000||US$44.92|
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||827,584||0.04%|
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.1%.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Uber Technologies, Inc.'s employee growth, exchange listings and data sources
- Name: Uber Technologies, Inc.
- Ticker: UBER
- Exchange: NYSE
- Founded: 2009
- Industry: Trucking
- Sector: Transportation
- Implied Market Cap: US$52.468b
- Shares outstanding: 1.98b
- Website: https://www.uber.com
Number of Employees
- Uber Technologies, Inc.
- 1515 3rd Street
- San Francisco
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|UBER||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||May 2019|
|0A1U||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||May 2019|
|UT8||BST (Boerse-Stuttgart)||Yes||Common Stock||DE||EUR||May 2019|
|UBER||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||May 2019|
|UT8||BRSE (Berne Stock Exchange)||Yes||Common Stock||CH||USD||May 2019|
|UT8||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||May 2019|
|UBER *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||May 2019|
|UT8||ETLX (Eurotlx)||Yes||Common Stock||IT||EUR||May 2019|
|UBER||SWX (SIX Swiss Exchange)||Yes||Common Stock||CH||CHF||May 2019|
|U1BE34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 4 REP 1 COM||BR||BRL||Dec 2019|
|UBERD||BASE (Buenos Aires Stock Exchange)||CEDEAR EACH 2 REPR 1 COM||AR||USD||Jul 2022|
|UBER||BASE (Buenos Aires Stock Exchange)||CEDEAR EACH 2 REPR 1 COM||AR||ARS||Jul 2022|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/30 00:00|
|End of Day Share Price||2022/09/30 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.