Uber Technologies is the IBD Stock of the Day as shares in the auto ride-hailing and food-delivery firm rebound from investor angst over Tesla's launch of a robotaxi service in Austin, Texas.
On the stock market today, Uber stock rallied 7.5% to close at 91.65. Shares have gained 44% this year, rebounding from 2024's pullback.
But two prior breakouts in 2025 were short-lived amid autonomous vehicle news from Tesla and Google-parent Alphabet. Tesla launched its service on Sunday. Meanwhile, ridership at Google's Waymo continues to surge.
Growing AV Partnerships
Some investors worry that new robotaxi services could challenge Uber's dominance of the ride-hailing market in the long run.
On the other hand, Uber has a growing partnership with Waymo and is in AV trials with Volkswagen, Pony AI and others.
Uber and Waymo have been partnering in Austin, where 100 robotaxis are now available. On Tuesday, Uber announced that Waymo robotaxis are now available in Atlanta exclusively through Uber.
"Uber now has 18 autonomous vehicle partners globally, and we continue to view the accelerating cadence of partnership/features launches as a positive stock driver," Bank of America analyst Justin Post said in a recent note to clients.
With Tuesday's gain, Uber stock has rebounded from its 50-day moving average, a key technical level. In addition, Uber stock neared its all-time high of 93.60 set on May 20 with Tuesday's advance. Uber stock holds a new entry point at that high mark on its weekly chart from a short, flat base, based on recent action.
Autonomous vehicle competition may be a long-term worry, but Uber's near-term financial outlook has also moved the stock.
In the first quarter of 2025, Uber adjusted earnings popped 359% to 83 cents per share while revenue climbed 14% to $11.5 billion, topping expectations. Uber's improved profit margin was a bright spot in the first quarter.
However, Uber's gross bookings outlook underwhelmed investors. Membership in the Uber One subscribers membership program, which offers loyalty rewards, hit 30 million, the company said. Subscribers pay $9.99 monthly or $96 annually for Uber One perks.
Uber Stock: Four Growth Drivers
Jefferies analyst John Colantuoni said in a recent note: "Uber sees four key drivers of growth: expansion into new, smaller markets, adoption from underpenetrated demographic groups, new products and Uber One adoption."
At its annual GO-GET conference in May, Uber rolled out new products, including a "Price Lock" feature to avoid surge pricing for some rides. The company also announced a bus-like "Route Share" service that offers cheaper fares for shared rides along busy corridors.
At BofA, Post said in his note: "New services like Route Share, and new partners like OpenTable can attract new users. The focus on affordability could modestly pressure near-term unit economics but should drive added bookings growth, share gains and lower customer churn."
Meanwhile, Uber's food delivery business faces stiff competition globally. And Lyft remains a formidable foe in the ride hailing market.
Uber's ridership remains solid, said Evercore ISI analyst Mark Mahaney in a report.
"Uber has been able to sustain 19% year-over-year Mobility Trips growth for three quarters in a row, and we see a series of factors that can keep that growth rate reasonably close to this level over the medium term," Mahaney said. "Uber has strong growth prospects with newer products like Uber Teens and Uber Seniors, and it has the opportunity to generate premium growth in 'sparser markets' (suburban and rural areas), where current penetration rates are relatively low."
Uber Stock Technical Ratings
Uber holds an IBD Composite Rating of 95 out of a best-possible 99, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Uber stock owns an Accumulation/Distribution Rating of C-plus. The A/D rating measures daily price and volume changes in institutional ownership of a stock for the prior 13 weeks. Uber's score indicates more institutional buying than selling in recent weeks.
Meanwhile, Uber stock sports a solid 21-day average true range of 2.85%. The ATR metric, available on IBD's MarketSurge charting tool, gauges the characteristic breadth of a stock's behavior.
Stocks that tend to make large jumps or dives in daily stock market action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
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