Uber (UBER) Stock Forecast & Price Target

Uber Technologies's stock outlook is bolstered by a substantial 26% year-over-year growth in active drivers in the fourth quarter, reflecting a solid balance between driver supply and demand, with projected EBITDA growth of 30-40% for 2025 significantly exceeding previous estimates. The firm’s membership strategy has also paid off, with Uber One membership increasing by 60% year-over-year, driving higher retention and reduced customer acquisition costs, which are expected to enhance consolidated margins. Additionally, favorable market conditions, including marginally rising UberX prices due to lower inflationary pressures on costs, further support a positive financial trajectory for the company.

Uber Technologies's stock outlook is negatively impacted by its rides revenue, which has not returned to pre-pandemic levels and is compounded by a smaller-than-expected contribution from the delivery market. Furthermore, the company's EBITDA margins are projected to decline from the previous year's performance, with recent investments in growth initiatives resulting in a quarter-over-quarter decrease in rides EBITDA margin. The firm also faces significant competition and demand variability throughout the week, indicating a challenging environment as consumer behavior shifts post-pandemic.