Is It Time To Buy Uber Stock

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Is It Time To Buy Uber Stock

Is It Time To Buy Uber Stock?

The Uber stock price reveals the company is going through a rough patch. The stock price is down by double figures and is far from its yearly highs of $101.99.

A major pullback in the Uber stock price can be alarming, given that it is a dominant platform. However, the financial position of Uber is stronger than ever, which can make many wonder if it is the right time to buy the stock.

Uber's Financials Look Solid

The Q4 data from Uber showed a 22% increase in bookings on a y/y basis. In fact, the bookings reached $54.1 billion while the revenue also jumped to $14.4 billion with a 20% y/y increase.

The non-GAAP of Uber also jumped by 46% and was recorded at nearly $1.9 billion. So, if everything is going so well for Uber, then why is the stock price down?

A key problem faced by Uber is the rise of autonomous driving. Investors are worried that the increase in self-driving will disrupt Uber's core business model.

A quick look at the competition shows they are already making a lot of progress. Waymo from Alphabet is also operational in many US cities, while Tesla is also making progress in its robotaxi service.

The current forward P/E of Uber is 22, but it seems that will change in the near future. There's a good chance that the Uber stock price will drop further in the coming quarters as the world moves towards autonomous driving.

However, we must also consider the fact that Uber is also investing heavily in its own AV fleet. In 2027, the company plans to rollout almost 100,000 robotaxis!

With all things considered, the safe option is to stay away from the Uber stock for now. After all, we don't know how the future will unfold for ride-hailing services like Uber.

But for those who are willing to take the extra risk, they can consider buying the Uber stock in small quantities. The key is to build the position slowly and only buy more stocks when the prices drop.

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