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.
Uber’s relationship with Waymo has also raised eyebrows. Reports emerged in late July that Waymo may exit its Uber partnership in Atlanta and Austin, Texas, next year. The stock hit a 12-month low of $65.41 around that time. CEO Dara Khosrowshahi described Waymo as a “very very important partner” while also noting Uber is actively diversifying its AV partnerships.
Uber’s Core Business Remains Strong
Uber’s Q2 numbers told a different story from the gloomy sentiment. Revenue came in at $14.19 billion, up 12.2% year over year. Gross bookings topped $58 billion, marking more than 20% growth for the fourth straight quarter. Adjusted EPS was $0.81, just ahead of the $0.80 consensus estimate.
Free cash flow over the past 12 months totaled $10 billion. The company expects that figure to reach $13 billion in 2027, an 8% free-cash-flow yield at current prices. Uber also holds $27 billion in cash and investments against $11 billion in debt.
Uber’s business breaks down to roughly 55% ride-hailing, 35% Uber Eats, and 10% freight. It has over 200 million active monthly users and generates eight times the revenue of No. 2 rival Lyft.
Bill Ackman, whose firm Pershing Square held over $2 billion in Uber as of March 31, wrote last week that the company’s “valuation is increasingly disconnected from its fundamentals.” Uber currently trades at about 17 times projected 2027 earnings, a discount to both the S&P 500 and the electric utility sector.
Wall Street Sees Upside
Evercore ISI analyst Mark Mahaney rates Uber Outperform with a price target of $150. He argues the market underappreciates Uber’s role as a “massive demand aggregator” and its ability to integrate robo-taxis into its existing fleet.
Jefferies analyst John Colantuoni recently raised his 12-month price target from $100 to $110, keeping it as a top pick. He said AVs will “supplement Uber’s existing human-led supply” rather than replace it.
The broader analyst consensus sits at “Moderate Buy” with an average price target of $104.25. Of 41 analysts tracked by MarketBeat, 33 have a Buy rating, four Hold, and three Sell.
Uber also added to its food delivery footprint last month with a $15 billion deal to acquire Europe’s Delivery Hero, opening access to new international markets.
Q3 2026 EPS guidance stands at $0.84 to $0.88.
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