Shares of Uber Technologies (UBER 1.67%) have had a fantastic year. As of Nov. 18, they have climbed 51% in 2025. The business continues to post strong financial results. And the market is clearly pleased.
Before hopping on the bandwagon and buying this growth stock, here are three things that investors should know.
Image source: Getty Images.
Uber matches supply and demand
Uber operates two key marketplaces. One is for mobility, and the other is for delivery. Riders can find drivers that will take them where they want to go. And hungry consumers can order food to their doorstep, delivered by couriers. All of this is facilitated by the Uber mobile app.
In essence, the company matches supply with demand, collecting fees in the process. In the third quarter, Uber reported $25.1 billion in mobility gross bookings, which resulted in $7.7 billion in revenue. And the business registered $23.3 billion in delivery gross bookings, resulting in $4.5 billion in revenue. These segments have grown rapidly in the past five years, indicating heightened demand.
Powerful competitive strengths support Uber's position
Running a marketplace means that Uber benefits from a powerful network effect. As it attracts more riders, drivers, and restaurants, for instance, the platform constantly becomes more valuable to all stakeholders. Customers have lower wait times and more food choices. Drivers have a larger pool of potential customers. And restaurants can maximize their sales potential. This is a key aspect of the company's economic moat.
Uber's brand also holds tremendous value. It has strong mindshare among stakeholders. And the business name is used interchangeably as a verb, showcasing how well it resonates with people.
The company faces competition, particularly from Lyft and DoorDash in the U.S. However, with its 189 million monthly active users, Uber is a clear leader in the space.
NYSE: UBER
Key Data Points
The stock has a billionaire backer
In January of this year, Bill Ackman revealed that his firm purchased 30.3 million shares of Uber. As of Sept. 30, Uber represented 20% of the billionaire hedge fund manager's $14 billion portfolio. It is the single-biggest position.
Investors might want to pay attention to what Ackman owns. Following the philosophy of Warren Buffett, his strategy focuses on making concentrated bets on high-quality companies. The goal after purchase is to hold these stocks for the long term.
Given Uber's huge gain this year, Ackman's bet was a smart move. The fact that his fund still owns a significant stake means he remains bullish on the company.
