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

We came across a bullish thesis on Uber Technologies, Inc. on Nikhs’s Substack. In this article, we will summarize the bulls’ thesis on UBER. Uber Technologies, Inc.'s share was trading at $79.78 as of January 28th. UBER’s trailing and forward P/E were 41.82 and 19.61 respectively according to Yahoo Finance.

Uber Technologies, Inc. develops and operates proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. UBER’s Q3 results initially appeared to signal margin hesitation, but a closer read shows a deliberate operating choice rather than weakness. Management is consciously trading short-term margin expansion for long-term capacity utilization across drivers, couriers, and autonomous vehicles, reinforcing Uber’s core advantage as a demand-orchestration platform rather than an asset owner.

Following the consolidation of Mobility and Delivery under a single COO in mid-2025, Uber is optimizing the entire ecosystem instead of siloed P&Ls, which is already visible in accelerating operating metrics. Trips grew 22% year over year to 3.5 billion, gross bookings rose 21% to $49.7 billion, and monthly active users reached 189 million, while adjusted EBITDA still expanded 33% and free cash flow reached $2.2 billion.

The key growth lever is cross-platform engagement. Only 20% of users currently use both Mobility and Delivery, but these customers spend three times more and exhibit 35% higher retention, making them materially more valuable. Increasing this penetration directly improves utilization by filling idle hours across the network. This same utilization logic underpins Uber’s autonomous vehicle strategy, where Waymo vehicles on Uber’s platform achieve near-peak utilization, materially higher than standalone human-driver benchmarks. Importantly, AV deployment has expanded total demand rather than cannibalizing drivers, with AV-heavy cities growing faster while maintaining healthy driver earnings.

Uber’s investments in grocery, retail, and Uber One further reinforce this flywheel by adding temporal diversity and predictable demand, keeping capacity productive throughout the day. By prioritizing frequency, affordability, and utilization over near-term margins, Uber is building a durable moat centered on busy hours. As these investments mature, operating leverage should reassert itself, positioning Uber for sustained revenue growth, expanding margins, and a structurally higher valuation over the medium term.

Previously, we covered a bullish thesis on Uber Technologies, Inc. (UBER) by Quality Equities in March 2025, which highlighted network effects, improving profitability, operating leverage, and upside from autonomous vehicles. UBER’s stock price has appreciated by approximately 5.51% since our coverage due to strengthening fundamentals. Nikhs shares a similar thesis but emphasizes utilization-driven growth, cross-platform engagement, and intentional margin moderation to maximize long-term capacity efficiency.

Uber Technologies, Inc. is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 143 hedge fund portfolios held UBER at the end of the third quarter which was 152 in the previous quarter. While we acknowledge the risk and potential of UBER as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UBER and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.