Uber Technologies, Inc (NYSE:UBER) is gaining momentum after a strong third quarter, with gross bookings surging 21% year-over-year — its fastest growth since 2023 — driven by accelerating demand across its Mobility and Delivery businesses.
The company continues to prioritize long-term expansion over short-term margins by investing in key growth areas such as affordability programs, grocery and retaildelivery, and autonomous vehicle development.
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DA Davidson analyst Tom White maintained a Buy rating on Uber and raised the price target from $102 to $108.
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White said Uber delivered a strong third quarter, outperforming expectations on gross bookings, which rose 21% year-over-year on a constant-currency basis — its fastest growth since late 2023. The analyst noted that both Mobility and Delivery segments accelerated, with Delivery gross bookings jumping 24% and Mobility rising 19%, exhibiting strength across the company's core businesses.
He explained that while Uber's adjusted EBITDA landed near the high end of guidance, it was slightly below consensus, reflecting management's focus on reinvestment rather than pure margin expansion.
White said Uber is deliberately "disrupting itself again" by reinvesting in major long-term growth opportunities such as affordability initiatives, cross-platform adoption, grocery and retail delivery and autonomous vehicles (AVs). Several of these areas are already generating tangible results — Grocery and Retail gross bookings have reached a $12 billion annual run rate, growing faster than restaurant delivery, and affordability programs helped accelerate U.S. mobility growth.
The analyst highlighted that Uber expects only moderate EBITDA margin expansion in 2026 as it prioritizes scaling new business lines over short-term profitability. He added that Uber remains on track to achieve its three-year financial targets, including mid-to-high-teens annual gross bookings growth, 30%–40% adjusted EBITDA growth and more than 90% free cash flow conversion through 2026.
White also pointed out Uber's early progress in autonomous vehicle operations, where trip growth in markets like Austin and Atlanta is running more than twice the U.S. average. However, the analyst said Uber's partnership with NVIDIA Corp (NASDAQ:NVDA) suggests the company is preparing for an AV buildout that will likely require it to own or operate more of its fleet in the early stages, delaying profitability for several years.
Despite that, he emphasized Uber's strong execution, growing cash generation, and disciplined reinvestment strategy as key factors positioning the company for sustainable long-term growth.
UBER Price Action: Uber Technologies shares were down 1.48% at $93.31 at publication on Wednesday.
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