3 Reasons We’re Fans of Uber (UBER)

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Uber trades at $79.59 and has moved in lockstep with the market. Its shares have returned 9.3% over the last six months while the S&P 500 has gained 10.5%.

Is UBER a buy right now? 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 15.6% annually to 208 million in the latest quarter. This growth rate is among the fastest of any consumer internet business and indicates its offerings have significant traction. Uber Monthly Active Platform Consumers

2. Outstanding Long-Term EPS Growth

Analyzing the long-term change in earnings per share (EPS) shows whether a company’s incremental sales were profitable — for example, revenue could be inflated through excessive spending on advertising and promotions.

Uber’s EPS grew at 41% compounded annual growth rate over the last three years, higher than its 16.4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Uber Trailing 12-Month EPS (Non-GAAP)

3. Increasing Free Cash Flow Margin Juices Financials

Free cash flow isn’t a prominently featured metric in company financials and earnings releases, but we think it’s telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.

As you can see below, Uber’s margin expanded by 13.3 percentage points over the last few years. This is encouraging, and we can see it became a less capital-intensive business because its free cash flow profitability rose more than its operating profitability. Uber’s free cash flow margin for the trailing 12 months was 18.3%.

Uber Trailing 12-Month Free Cash Flow Margin

Final Judgment

These are just a few reasons Uber is a rock-solid business worth owning. At $79.59 per share (or 13.3× forward EV/EBITDA), is now the right time to buy the stock? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More Than Uber

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

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Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

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