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3 Reasons We're Fans of Uber (UBER)

By Petr Huřťák | October 06, 2025, 12:02 AM

UBER Cover Image

The past six months have been a windfall for Uber’s shareholders. The company’s stock price has jumped 47.3%, hitting $96.67 per share. This was partly thanks to its solid quarterly results, and the run-up might have investors contemplating their next move.

Is now still a good time to buy UBER? Or are investors being too optimistic? Find out in our full research report, it’s free for active Edge members.

Why Is Uber a Good Business?

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 14.3% annually to 180 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

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 151% compounded annual growth rate over the last three years, higher than its 22.8% 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

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 15.4 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%.

Uber Trailing 12-Month Free Cash Flow Margin

Final Judgment

These are just a few reasons Uber is a rock-solid business worth owning, and after the recent rally, the stock trades at 21× forward EV/EBITDA (or $96.67 per share). Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .

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