Uber Shares Hit All-Time High on Autonomous Vehicle Outlook, Short-Term Profitability
UBER
Published on 05/20/2025 at 13:29
By Connor Hart
Shares of Uber Technologies rose to an all-time high after JP Morgan analysts said the company is well positioned to benefit from the adoption of autonomous vehicles, while also continuing to drive profitable growth in its core business.
The stock was trading at $92.89 on Tuesday afternoon, marking a slight decrease from its peak of $93.60 earlier in the day. Shares have gained nearly 46% in the past year.
The ride-hailing company is becoming an increasingly valuable partner to autonomous-vehicle tech providers as a demand and utilization platform and fleet operator, the analysts said in a research note.
This belief is evident by Uber's recent artificial-intelligence alliances, they continued. During a recent meeting the analysts had with several members of Uber's leadership team, including its top executive and finance chief, the company said its partnership with Waymo in Austin, Texas, has exceeded expectations in terms of vehicle uptime, overall utilization and consumer experience.
Uber expects autonomous vehicles to continue gaining market share and expanding to new cities in the coming years, and the company aims to eventually have multiple autonomous-vehicle providers on the platform, reducing risk of dependency. The analysts noted that they expect the space to remain largely unprofitable until scale increases and vehicle costs materially decline.
This hit to the bottom line isn't worrying the meantime, though, as the analysts said Uber continues to drive profitable growth across its core business. The company has been actively working to lower prices in order to increase the overall accessible market, analysts said, adding that insurance trends and delivery margins are both improving.
JP Morgan raised its price target to $105 from $92, and the bank maintained its overweight rating.
Write to Connor Hart at [email protected]
(END) Dow Jones Newswires
05-20-25 1328ET