Is Uber Stock a Buy Following the Robotaxi Push in Dubai With WeRide?

In a significant development in the autonomous vehicle space, Uber Technologies UBER recently partnered with China’s WeRide WRD to introduce self-driving cars in Dubai. The companies announced a partnership with Dubai’s Road and Transport Authority. This collaboration aims to integrate WeRide's self-driving technology into Uber's platform.The partnership, which will explore data insights, safety protocols and regulatory frameworks to support a smooth transition to autonomous mobility in Dubai, is in line with Dubai’s goal of making one-fourth of all city trips autonomous by 2030. The partnership in Dubai represents the second city in the region where WeRide and Uber are teaming up to bring cutting-edge autonomous mobility solutions to the public. In December 2024, Uber and WeRide launched a robotaxi service in Abu Dhabi.Uber aims to gain a stronghold in the highly promising robotaxi market through strategic partnerships. The above association is a step on that front. By adopting this approach, Uber has avoided the massive R&D costs associated with developing autonomous systems independently. Uber’s rival in the  ride-sharing market, Lyft LYFT, is also aiming to be a key player in the lucrative and emerging autonomous vehicle market, highlighting the immense competition in the space. The global robotaxi market is projected to reach $45.7 billion by 2030 at a CAGR of 91.8% from 2025 to 2034.Other Factors Working in Uber’s FavorImpressive Price Performance: Uber has navigated the recent tariff-induced stock market volatility well, registering a 7.2% year-to-date gain, while the S&P 500 index, the Zacks Internet-Services industry and rival Lyft are down in double digits in 2025 so far.YTD Price ComparisonImage Source: Zacks Investment ResearchOver the past year as well, Uber shares have performed much better than Lyft.Favorable Earnings Estimate Revision: The Zacks Consensus Estimate for first-quarter and second-quarter 2025, along with full-year 2025 and 2026, has seen upward revisions over the past 60 days. The positive revision trend reflects confidence in UBER’s ability to continue delivering strong financial performances.Image Source: Zacks Investment ResearchImpressive Earnings History: Uber surpassed the Zacks Consensus Estimate for earnings in three of the last four quarters and missed the mark once, the average beat being 133.5%.Uber Technologies Price and EPS Surprise Uber Technologies price-eps-surprise | Uber Technologies QuoteUber’s Buyback Strategy Signals Confidence: In 2024, Uber generated a record $6.9 billion in free cash flow, with an adjusted EBITDA of $6.5 billion. Uber’s announcement earlier this year to start an accelerated $1.5 billion stock buyback program highlights not only its shareholder-friendly strategy but also signals confidence in its ongoing business strategy. The $1.5 billion plan is part of the company's $7 billion buyback program announced last year.Commendable Expansion Efforts: Even though Uber’s primary business is ridesharing, it has diversified into food delivery and freight over time. Diversification is imperative for big companies to reduce risks, and UBER has excelled in this area. The company has engaged in numerous acquisitions, geographic and product diversifications, and innovations. Uber’s endeavors to expand into international markets are commendable and provide it with the benefits of geographical diversification. Prudent investments enable Uber to extend services and solidify its comprehensive offerings.Key Segments Performing Well: Uber’s ridesharing and delivery platforms are growing in popularity. This is generating strong demand, which, along with the latest growth initiatives and continued cost discipline, are driving the company’s results. In the fourth quarter of 2024, total gross bookings increased 21% year over year on a constant currency basis to $44.2 billion, with trips rising 18% to 3.1 billion. Gross bookings are likely to be strong going forward, keeping Uber in good shape.We expect gross bookings from the Mobility segment in the March-end quarter to grow 15.6% on a year-over-year basis. We expect gross bookings from the Delivery segment in the March quarter to grow 15.1% on a year-over-year basis. Total trips are expected to increase 19.4% year over year in the March-end quarter, per our model. UBER is a Solid PickBased on the abovementioned tailwinds, investors should consider parking their cash in Uber now. The company currently carries a Zacks Rank #2 (Buy).The Wall Street average target price of $90.02 for UBER stock suggests an upside of more than 39% from current levels.Image Source: Zacks Investment ResearchYou can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report WeRide Inc. (WRD): Free Stock Analysis Report Lyft, Inc. (LYFT): Free Stock Analysis Report Uber Technologies, Inc. (UBER): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks