Uber Technologies, Inc. (UBER): A Bull Case Theory

We came across a bullish thesis on Uber Technologies, Inc. on Disruptive analytics’ Substack by Magnus Ofstad. In this article, we will summarize the bulls’ thesis on UBER. Uber Technologies, Inc.'s share was trading at $96.79 as of August 22^nd. UBER’s trailing and forward P/E were 16.49 and 31.75 respectively according to Yahoo Finance.

Uber has gained nearly 30% since being recommended in November 2024, supported by Q2 results that exceeded expectations across all key metrics. Revenue growth of 18% outpaced projections of 15%, while gross profits and EBIT margins also came in stronger. Management raised Q3 guidance, prompting an upward revision of fair value from $100 to $105 per share. Although the earnings report did not disclose advertising sales, this segment is likely growing in line with Uber One memberships, which have expanded from 30 million to 36 million year-to-date, suggesting advertising has become a meaningful revenue driver. Another highlight from the quarter was the acceleration of Uber’s buyback program, now pledged at $20 billion, translating into a 2% buyback yield that is expected to at least double in 2025.

Concerns about robotaxis remain an overhang, with shares often reacting negatively to announcements from competitors. However, Uber has responded with a more aggressive strategy, forming 20 partnerships with automated vehicle providers globally. The long runway for adoption implies human drivers and autonomous vehicles will coexist for years, limiting near-term disruption. More importantly, while companies like Waymo and Tesla focus on technology and hardware, scaling global fleet management and ride-hailing is capital intensive and unattractive.

The value lies in software and aggregation, where Uber holds a dominant position. As the ultimate demand aggregator, Uber is uniquely positioned to integrate autonomous providers into its platform, offering consumers a single, cost-effective solution rather than fragmented alternatives. This reinforces Uber’s moat and growth trajectory, with multiple catalysts for upside.

Previously we covered a bullish thesis on Uber Technologies, Inc. (UBER) by FluentInQuality in May 2025, which highlighted the company’s transformation into a profitable global logistics platform with strong recurring revenue streams and monetization levers. The stock has appreciated approximately by 9.86% since our coverage as operating leverage and profitability improved. The thesis still stands as Uber’s scale and optionality remain intact. Magnus Ofstad shares a similar view but emphasizes near-term catalysts like Q2 results, buybacks, and robotaxis.

Uber Technologies, Inc. is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 145 hedge fund portfolios held UBER at the end of the first quarter which was 166 in the previous quarter. While we acknowledge the potential of UBER as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None.