Uber Stock: Ackman Says Buy, Wall Street Agrees With $104 Target
TLDR
- Uber stock trades around $76, near its lowest valuation since its 2019 IPO, down 7% year to date
- Q2 revenue rose 12.2% year over year to $14.19 billion; adjusted EPS of $0.81 beat estimates by $0.01
- Bill Ackman says Uber’s valuation is “increasingly disconnected from its fundamentals” with earnings expected to rise 35% this year
- Uber has committed $10 billion to robo-taxi deployment, planning 120,000 autonomous vehicles on its network
- Wall Street holds a “Moderate Buy” consensus with an average price target of $104.25
Uber stock is trading around $76, and Wall Street is divided on whether that price is a bargain or a warning sign. The stock is down 7% year to date and sits near its lowest valuation since the company went public at $45 a share in 2019.
The main drag? Fear of autonomous vehicles cutting into Uber’s core ride-hailing business.
Robo-taxis currently account for just 1% of U.S. rides and operate in roughly seven cities. That number is expected to grow to 15 cities by year end, but the rollout has been slower than many expected due to technology hurdles, regulatory challenges, and public hesitancy around driverless cars.
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