TLDR
- Uber stock is down about 8% year to date, trading around $75, despite stronger financials
- Q2 revenue rose 12.2% year over year to $14.19 billion, with EPS of $0.81, beating estimates
- Delivery segment grew 28% year over year and now makes up more than one-third of total sales
- Uber trades at a P/E of roughly 17, far below food delivery rival DoorDash’s P/E of around 110
- Analyst consensus is “Moderate Buy” with an average price target of $104.25
Uber stock opened Thursday at $75.27, down around 8% year to date, even as the company posted solid second-quarter results.
Q2 revenue came in at $14.19 billion, up 12.2% year over year, just slightly below analyst expectations of $14.24 billion. EPS of $0.81 edged past the consensus estimate of $0.80.
CEO Dara Khosrowshahi noted that Uber added more first-time users over the past 12 months than in any period over the last five years. Monthly active platform consumers rose 16% year over year, with trips up 18%.
The delivery business is doing the heavy lifting. The segment grew 28% year over year in Q2, while the transportation side posted just 1% growth. Delivery now accounts for more than one-third of total revenue.
Gross bookings topped $58 billion in Q2, marking the fourth straight quarter of more than 20% bookings growth across Mobility, Delivery, and Freight.
Valuation Gap vs. DoorDash
Uber’s non-GAAP net income grew 29% in Q2 to $1.6 billion, producing an 11.6% profit margin. The company has a return on equity of 43.36% and a net margin of 17.34%.
Despite that, Uber trades at a P/E ratio of around 17. DoorDash carries a P/E of roughly 110. Uber is delivering higher margins, while DoorDash is growing faster.
The stock’s 52-week range runs from $65.41 to $101.99, and its 50-day moving average sits at $72.14. For Q3 2026, Uber has guided for EPS of $0.84 to $0.88.
Risks on the Radar
There are a few headwinds worth watching. Uber Freight is investigating a cybersecurity incident after a hacking group claimed a data breach. Operations are reportedly unaffected, but costs and reputational risk remain unclear.
A potential legal change in California could allow Uber and Lyft drivers to unionize, which would raise labor costs and put pressure on the independent-contractor model.
Uber also sold its entire stake in delivery robot company Serve Robotics, raising questions about its robotics direction even as it continues investing in autonomous vehicles.
On the positive side, Transport for London licensed Wayve vehicles for autonomous rides, moving Uber closer to a robotaxi rollout in the UK.
Institutional investors remain broadly committed. Norges Bank took a new position worth around $2.5 billion in Q4. Marshall Wace raised its position by over 1,400% in the same period. Around 80% of Uber stock is held by institutional investors.
Wall Street’s consensus rating stands at “Moderate Buy” with an average price target of $104.25, roughly 38% above Thursday’s opening price.
Needham reiterated a “Buy” rating with a $109 target on August 6. DA Davidson kept its “Buy” but trimmed its target from $107 to $100. Sanford C. Bernstein also cut its target from $110 to $95 but kept an “Outperform” rating.
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