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

We came across a bullish thesis on Uber Technologies, Inc. (UBER) on Substack by FluentInQuality. In this article, we will summarize the bulls’ thesis on UBER. Uber Technologies, Inc. (UBER)'s share was trading at $88.10 as of May 12^th. UBER’s trailing and forward P/E were 15.43 and 32.36 respectively according to Yahoo Finance.

Uber Technologies (UBER) is no longer just a ride-hailing app—it has evolved into a powerful global logistics platform, spanning rides, food delivery, and freight. The company has undergone a financial and operational transformation, moving from a growth-at-all-costs narrative to a disciplined, cash-generative machine. Uber holds a dominant position in North America and is gaining strength internationally. With over 130 million monthly active users across mobility and delivery, the company's scale provides a strong foundation for monetization. Uber Eats has turned profitable in most markets, while Freight is transitioning into a more asset-light, scalable model. Uber One, the subscription service, boosts customer retention and frequency, enhancing lifetime value. In addition to its core services, Uber is quietly building a new layer of monetization by leveraging internal infrastructure such as maps, advertising, and payments—assets with untapped upside.

Wall Street is only beginning to reprice this shift. Financially, Uber has flipped the script—Adjusted EBITDA exceeded $1.4 billion last quarter, free cash flow is solidly in the billions, and net income has turned positive after years of losses. Operating leverage continues to improve, highlighting the scalability of the platform. With its network fully built, Uber is now realizing the benefits of scale, converting past investments into sustainable profits. In an environment dominated by greed, Uber offers a rare asymmetric opportunity: a proven business with optionality in logistics, a sticky user base, strong recurring revenue streams, and a compelling valuation given its transformation. As investors chase themes of platform scale, digital infrastructure, and logistics dominance, Uber stands at the intersection of all three—already profitable, growing, and still mispriced. With rising cash flows and multiple embedded growth levers, Uber presents a standout risk/reward profile that is hard to ignore.

Uber Technologies, Inc. (UBER) is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 166 hedge fund portfolios held UBER at the end of the fourth quarter which was 136 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 timeframe. If you are looking for an AI stock that is more promising than UBER but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.