Uber (UBER) stock has been stuck in neutral since Tesla announced its robo-taxi plans last year. Barron’s reports that investors fear autonomous vehicles could push Uber out of the market entirely. Tesla and Waymo are expanding their self-driving efforts. This has raised concerns that Uber could lose a significant share of its ride-hailing business.
Waymo, a unit of Alphabet (GOOGL), is already running fully autonomous taxi services in multiple cities. If Tesla’s robo-taxis enter the market in 2026 as planned, Uber may struggle to compete. These worries have kept pressure on Uber’s stock, which plunged 31% and has yet to recover.
Autonomous Cars Could Boost Uber, Not Kill It
The fear of driverless cars replacing Uber may be overblown. Barron’s notes that Uber is already partnering with Waymo in Atlanta and Austin. Analysts argue that self-driving taxis could increase overall ride demand, helping Uber’s business. “The [ride-share] market expands because there’s more and more use cases,” Wedbush analyst Scott Devitt told Barron’s.
Uber’s Revenue Growth Stays Strong
Despite concerns, Uber is still growing. The company pulled in $44 billion in 2024, with over half from ride-sharing and a third from Uber Eats. First-quarter guidance points to 19% gross bookings growth. Moreover, Uber’s valuation has been cut in half, making now a buying opportunity.
Uber’s Future Isn’t Just about Cars
Uber’s future isn’t just about cars. The company aims to be a “super app” for rides, food, and travel. Advertising is a growing revenue source, and analysts see long-term potential. Uber’s free cash flow is booming, and analysts expect earnings to grow 33% in 2026. The road ahead may be uncertain, but Uber is still moving forward.
Is Uber a Good Stock to Buy Today?
Analysts remain bullish about UBER stock, with a Strong Buy consensus rating based on 32 Buys and four Holds. Over the past year, UBER has decreased by more than 5%, and the average UBER price target of $90.77 implies an upside potential of 28.5% from current levels.
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