3 Reasons to Buy Uber Stock Like There's No Tomorrow | The Motley Fool

Uber Technologies ( UBER +0.22%) has long grabbed the attention of investors. Its rideshare platform has changed the face of transportation and competes against the likes of Lyft , DoorDash , and companies like Grab Holdings overseas. Admittedly, success as a company does not necessarily lead to stock market profits in the short run. Still, Uber is likely a stock that could benefit investors long term, and three reasons explain why. Image source: Getty Images. 1. Market leadership Investors might recall that the former CEO of what is now GE Aerospace , Jack Welch, recommended investing in only the No. 1 or No. 2 companies in a specific business. Fortunately, Uber passes this test in more than one business. First is mobility. Uber was not the first rideshare company. Nonetheless, it is the most successful, serving more than 15,000 cities across 70 countries, and it does this primarily without owning its own cars. The company brings together those needing rides and contract drivers with their own cars who want to earn extra money. Uber is also a leader in the delivery business. Indeed, the delivery service Uber Eats lags DoorDash in the U.S. However, its mobility revenue exceeds DoorDash's overall revenue, implying Uber is the global delivery leader. Together, those two segments made up 89% of Uber's revenue in the first nine months of 2025, and the freight segment accounts for the remainder of its revenue. While this part of the company has not been as successful, it has not negated Uber's other successes. 2. The financials Moreover, Grand View Research forecasts a compound annual growth rate (CAGR) of 14% for rideshare and a 9% CAGR for food delivery through 2030. Uber seems to have outperformed those expectations. It generated nearly $38 billion in revenue in the first three quarters of 2025, an 18% increase compared to the same period in 2024. Uber also controlled its expense growth during that time, and also benefited from a one-time, $4.3 billion tax benefit. That means net income for the first nine months of 2025 was $9.8 billion, far above the $3.0 billion reported in the same year-ago period. Fortunately, that still amounts to a considerable profit increase even without the tax benefit. Amid improvements, Uber's stock rose by about 35% over the last year. NYSE: UBER Key Data Points As for its valuation, the aforementioned tax benefit helped take its price-to-earnings (P/E) ratio down to 11. Nonetheless, its forward P/E , which excludes one-time benefits, is just 13. This implies investors are not fully appreciating Uber's value or growth potential, possibly pointing to an opportunity for prospective shareholders. 3. Uber's role in autonomous driving That potential may receive more appreciation once investors understand its growing role in autonomous driving. The company has partnered with companies such as GM , Volkswagen , and Alphabet 's Waymo in this industry. These companies likely do not have the resources to build their own rideshare platform. To this end, they can partner with Uber to match...

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