Uber trades at $69.28 per share and has moved almost in lockstep with the market over the last six months. The stock has lost 6.7% while the S&P 500 is down 7%. This might have investors contemplating their next move.
Given the weaker price action, is now an opportune time to buy UBER? Find out in our full research report, it’s free.
Why Are We Positive On Uber?
Notoriously funded with $7.7 billion from the Softbank Vision Fund, Uber (NYSE:UBER) operates a platform of on-demand services such as ride-hailing, food delivery, and freight.
1. Monthly Active Platform Consumers Skyrocket, Fueling Growth Opportunities
As a gig economy marketplace, Uber generates revenue growth by expanding the number of services on its platform (e.g. rides, deliveries, freelance jobs) and raising the commission fee from each service provided.
Over the last two years, Uber’s monthly active platform consumers, a key performance metric for the company, increased by 13.8% annually to 171 million in the latest quarter. This growth rate is among the fastest of any consumer internet business and indicates its offerings have significant traction. 
2. Outstanding Long-Term EPS Growth
We track the change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Uber’s EPS grew at an astounding 133% compounded annual growth rate over the last three years, higher than its 36.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
3. Increasing Free Cash Flow Margin Juices Financials
If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.
As you can see below, Uber’s margin expanded by 19.9 percentage points over the last few years. This is encouraging because it gives the company more optionality. Uber’s free cash flow margin for the trailing 12 months was 15.7%.
Final Judgment
These are just a few reasons Uber is a high-quality business worth owning. With the recent decline, the stock trades at 17.5× forward EV-to-EBITDA (or $69.28 per share). Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More Than Uber
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.