Uber Technologies (UBER +2.85%) has navigated the recent stock market volatility well, delivering a solid 23% year-to-date gain for shareholders, while the S&P 500 index is down about 3.5% in 2025 thus far.
The ride-sharing giant is capitalizing on strong demand across its platform, which has led to accelerating profitability. As the company targets new growth opportunities, a compelling case emerges that Uber's outlook is stronger than ever.
Here are four reasons I believe Uber Technologies stock can make an excellent addition to your portfolio right now.
NYSE: UBER
Key Data Points
1. Uber is reporting strong platform demand
For more than a decade, Uber has redefined personal mobility, becoming a cultural shorthand for convenient, on-demand transportation. The company's growth trajectory has been remarkable, with its monthly active platform consumers (MAPCs) now exceeding 170 million -- more than double the 80 million it reported in 2018. In 2024, the company facilitated 11.3 billion trips worldwide, which generated $44 billion in net revenue, up 18% year over year.
It's not just its ride-sharing service fueling this momentum. Uber has successfully introduced several new transportation options in recent years while leveraging its technology ecosystem into services like food delivery and freight solutions. Not only are more users utilizing an Uber service for the first time, but they're also increasingly active, taking trips or placing delivery orders more frequently.
This ongoing diversification as Uber continues to enter new markets further strengthens the company's fundamentals as a high-quality industry leader. Yet, Uber believes it is just getting started, noting that its consumer user base still represents less than 5% of the total addressable adult population in the major countries it serves.
Image source: Getty Images.
2. Uber is a cash-flow juggernaut
Perhaps even more impressive than Uber's growth is its improved financial position, where earnings and free cash flow have crossed an inflection point. In 2024, earnings per share (EPS) of $4.56 soared compared to $0.87 in 2023, while the $6.9 billion in free cash flow was up 105%.
The expectation is for further profitable growth with an upside for operating margins. Uber's management has projected optimism toward its outlook, through its $7 billion share repurchasing authorization announced last year. Uber's ability to return cash to shareholders adds to its appeal as an investment.
3. Uber is positioned to lead with autonomous vehicles
Uber has faced questions about how it will address the rise of autonomous vehicles (AVs), which present both a risk to its driver-based model as well as a massive opportunity. Management acknowledges that mass-scale AV commercialization is years away, with cost, safety, and regulatory challenges ensuring human drivers remain essential to urban mobility for the foreseeable future.
Nevertheless, Uber's technology and global infrastructure -- covering customer support, payments, and fleet management -- position it uniquely to support AV operators. Already partnering with leaders like Waymo (an Alphabet subsidiary) and China-based WeRide, Uber integrates autonomous rides into its network in select regions, leveraging these collaborations to tap into a projected $1 trillion market over the next decade.
4. Uber has a compelling valuation
Shares of Uber are trading at 23 times its consensus 2025 EPS estimate, a forward price-to-earnings (P/E) ratio that I view as attractive for a consumer-focused tech titan delivering double-digit percentage growth. While that earnings multiple commands a significant premium over its smaller ride-share rival Lyft (which trades at a forward P/E of 12), Uber's stronger brand recognition, larger scale, and more diversified, future-proof offerings justify its premium.
A better comparison might be with disruptors like DoorDash, Airbnb, and even Amazon, which lead their categories in the platform economy and trade at forward P/Es above 30. By this measure, Uber stock offers a good mix of growth and value.
Data by YCharts.
Final thoughts
I'm bullish on Uber and predict its shares will continue climbing. I fully expect the stock price to regain its October 2024 all-time high price of $87 by this time next year (it's currently priced around $74). The company's combination of strong growth and recurring profitability positions it well to reward shareholders over the long run. Investors confident in Uber's potential have plenty of reasons to buy the stock for a diversified portfolio.
