Zacks Investment Ideas feature highlights: Uber Technologies, DoorDash, Alphabet and Lyft

For Immediate Release

Chicago, IL – April 22, 2025– Today, Zacks Investment Ideas feature Uber Technologies UBER, DoorDash DASH, Alphabet's GOOGL and Lyft LYFT.

Uber Dominating Ride Sharing & Delivery: Should You Buy It?

Zacks Rank #3 (Hold) stock Uber Technologies is the dominant player in the North American ride-sharing business. Beyond the United States, Uber has expanded its business into multiple worldwide areas, including Canada, Latin America, Europe, the Middle East, and Asia (excluding China). Through its mobile application and vast network of drivers, Uber offers various services to customers based on details like the number of riders, vehicle style, pets or no pets, and rushed services (for a higher fee). In addition, Uber has diversified into the delivery business.

Uber Eats Booms

While the COVID-19 pandemic upended many businesses, Uber benefitted. Because of stay-at-home policies, food delivery services like Uber Eats and DoorDash have seen online order volumes surge. Even after economies reopened, the habit of placing orders online has stuck – especially among the younger generations. Meanwhile, Uber Eats has partnerships with countless others.

Uber & Waymo Partnership

A bearish argument against UBER is that autonomous robotaxis will replace UBER. However, Uber has partnered with the leader in autonomous taxis, Alphabet's Waymo. Waymo is currently the only active robotaxi service in the US and is available in multiple states. Customers can book Waymo robotaxis through the regular Uber app, maintaining the familiar Uber experience.

Improving Fundamentals

UBER has finally scaled to the level where it is a consistently profitable business. In 2023, UBER finally turned a profit; since then, it hasn't looked back.

Another positive sign is that with improved cash flows, UBER management is intent on rewarding shareholders. Last year, the company announced a massive $7 billion buyback program – the first in company history.

Stellar Relative Strength

Uber shares are holding up extremely well compared to the general market and its main competitor, Lyft. Year-to-date, UBER shares are up 21.7%, while LYFT has sunk 17%, and the S&P 500 is down 12.44%.

Should the market rebound, UBER is poised to morph into a leader.

Bottom Line

Uber Technologies has morphed into a fundamental market leader with consistent profitability. In addition, a share buyback program, robust relative stock performance, and a dominant position in the ride-sharing and food delivery markets put the stock in a strong position for the remainder of 2025.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.

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