The Zacks Analyst Blog Uber, Comcast, Gilead Sciences and Onfolio Holdings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 10 2025
0mins
Should l Buy UBER?
Source: NASDAQ.COM
Stock Performance Overview: Zacks.com highlights recent stock performances, noting Uber's 1.4% gain over six months, Comcast's struggles with subscriber losses, Gilead's strong growth in HIV therapy, and Onfolio's impressive revenue increase driven by acquisitions.
Investment Recommendations: Analysts advise caution on Uber due to high costs and debt, while highlighting Comcast's potential in wireless and streaming, Gilead's promising pipeline despite setbacks, and Onfolio's operational challenges amid significant growth.
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Analyst Views on UBER
Wall Street analysts forecast UBER stock price to rise
32 Analyst Rating
28 Buy
3 Hold
1 Sell
Strong Buy
Current: 69.990
Low
72.00
Averages
107.10
High
150.00
Current: 69.990
Low
72.00
Averages
107.10
High
150.00
About UBER
Uber Technologies, Inc. operates a technology platform that uses network and technology to power movement from point A to point B. It develops and operates technology applications supporting a variety of offerings on its platform (platform(s)). Its segments include Mobility, Delivery and Freight. Mobility products connect consumers with drivers who provide rides in a variety of vehicles, such as cars, auto rickshaws, motorbikes, minibuses, or taxis. Delivery offerings allow consumers to search for and discover local restaurants, order a meal, and either pick-up at the restaurant or have the meal delivered. In certain markets, the Delivery segment provides offerings for grocery, alcohol, and convenience store delivery as well as select other goods. The Freight segment connects carriers with shippers on its platform, and gives carriers upfront, pricing and the ability to book a shipment. The Freight segment also includes transportation management and other logistics service offerings.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Uber: Growth Potential and Attractive Valuation
- Strong Revenue Growth: In Q4 2025, Uber reported a 20% year-over-year revenue increase, driven by a 22% surge in gross bookings, showcasing robust performance in both mobility and delivery segments, with operating income projected to rise at a 31% compound annual growth rate by 2028.
- Clear Competitive Advantages: As a category creator, Uber's brand has become synonymous with ride-hailing, demonstrating significant consumer mindshare, while its network effect enhances service quality, leading to improved user experiences and solidifying its market position.
- Large User Base: Uber completed 3.8 billion trips in Q4, boasting 9.7 million active drivers and couriers, where the growing user base not only enhances service quality but also increases market share and customer loyalty.
- Attractive Valuation: With a forward price-to-earnings ratio of 21.1, below the S&P 500 index, and optimistic management commentary, it indicates a prime opportunity for investors to buy this growth stock, highlighting its substantial future potential.
See More
Analysis of Lucid's 70% Stock Decline
- Significant Delivery Shortfall: Lucid delivered only 4,369 vehicles in 2022, far below its promise of 20,000, with 6,001 in 2023 and an expected 10,241 in 2024, highlighting severe challenges in supply chain and market competition that have eroded investor confidence.
- Executive Turnover Impact: Founder Peter Rawlinson resigned in early 2025, and the lack of a new CEO has created uncertainty in leadership, potentially exacerbating market concerns about Lucid's future and its strategic execution capabilities.
- Government Support and Market Opportunities: Despite challenges, Lucid benefits from over 60% ownership by the Saudi Arabian Public Investment Fund and plans to deploy 20,000 autonomous Gravity SUVs in partnership with Uber and Nuro over the next six years, indicating potential growth opportunities in the market.
- Optimistic Future Revenue Projections: Analysts expect Lucid's revenue to grow from $1.3 billion in 2025 to $4.6 billion by 2027, primarily driven by increased sales of Air sedans and Gravity SUVs, although it must overcome production and market challenges to achieve profitability.
See More
Investors Spooked by High AI Costs Amid Tech Sell-Off
- Intel's Turnaround: Under CEO Lip-Bu Tan, Intel (INTC) is enhancing chip efficiency with its 18A manufacturing process, and despite a stagnant revenue of $53 billion for 2025, its stock has surged over 140% in the past year, indicating market optimism about its recovery.
- Uber's Management Uncertainty: Uber (UBER) faces uncertainty with its CFO stepping down and fears of being sidelined by Tesla and Alphabet, leading to a stock decline; however, partnerships with Waymo and GM could bolster its autonomous driving efforts, and a P/E ratio near 15 suggests undervaluation potential.
- Amazon's Value Proposition: Following its Q4 2025 earnings report, Amazon's (AMZN) P/E ratio has dropped to 29, reflecting its newfound attractiveness, despite a planned $200 billion capex for 2026 in AI and cloud; a $244 billion backlog in AWS and AI, up 40% year-over-year, signals strong future returns.
- Market Sentiment Impacting Tech Stocks: Investor concerns over high AI costs have led to a broad sell-off in tech stocks, yet historical trends suggest such situations are often temporary, potentially creating opportunities for investors to reassess and buy into companies like Intel, Uber, and Amazon.
See More
Billionaire Ackman Takes $2B Position in Meta
- Portfolio Restructuring: Ackman's Pershing Square Capital Management has opened a $2 billion position in Meta Platforms, making it the fund's fourth-largest holding, reflecting strong confidence in AI stocks and expected long-term growth potential for Meta.
- Concentration in AI Investments: Over 50% of Ackman's portfolio is allocated to AI stocks, with Uber, Alphabet, and Amazon representing 20%, 19%, and 8.7% respectively, indicating his bullish outlook on the AI sector, which may enhance these companies' market performance.
- Meta's Advertising Potential: By integrating generative AI into its social media advertising platforms, Meta has improved ad click-through rates and pricing power, which is expected to significantly enhance operational results and further solidify its leadership in the advertising market.
- Market Valuation Advantage: Meta's current share price appears undervalued with a forward P/E ratio of 18.6, reflecting an 11% discount to its average over the past five years, providing an attractive opportunity for investors, and Ackman's investment may draw market attention.
See More
Uber Plans to Offer Various Securities for Sale
- Securities Offering Plan: Uber Technologies has indicated in its prospectus that it may periodically offer or allow selling shareholders to sell a mix of securities, including common and preferred stock, showcasing the company's flexibility and diversified financing strategy in the capital markets.
- Diverse Security Types: The securities could include common stock, preferred stock, debt securities, warrants, purchase contracts, and guarantees, indicating Uber's approach to cater to various investor needs through a diversified financing method.
- Conversion Mechanism: According to the prospectus, these securities may also be issued upon the conversion or exercise of other described instruments, which could attract more investors and enhance the company's capital base through this flexible structure.
- Market Reaction Anticipation: This move by Uber is likely to draw attention in the capital markets, especially in a highly competitive environment, as it aims to strengthen its market position and financial stability through diversified financing options.
See More
Uber Plans to Expand Delivery Operations in Europe
- Market Expansion Plan: Uber is set to enter seven additional European countries, including Austria, Denmark, Finland, and Norway, by 2026, aiming to generate an additional $1 billion in gross bookings over three years, significantly enhancing its competitive position in the European market.
- Competitor Analysis: Uber's expansion will compete directly with Finland's Wolt, which was acquired by DoorDash in 2022, making this move not only a battle for market share but also a strategic positioning amid a wave of consolidation in the European food delivery sector.
- Acquisition Strategy: Recently, Uber announced plans to acquire Getir's food delivery business in Türkiye, which will enhance its ability to meet restaurant demand and leverage global technology to improve service efficiency, further solidifying its market position.
- Automation Services: Uber also plans to automate its delivery services using drones and robots, which will not only increase operational efficiency but also provide faster service responses in a competitive market, thereby enhancing customer satisfaction.
See More
Uber: Growth Potential and Attractive Valuation
- Strong Revenue Growth: In Q4 2025, Uber reported a 20% year-over-year revenue increase, driven by a 22% surge in gross bookings, showcasing robust performance in both mobility and delivery segments, with operating income projected to rise at a 31% compound annual growth rate by 2028.
- Clear Competitive Advantages: As a category creator, Uber's brand has become synonymous with ride-hailing, demonstrating significant consumer mindshare, while its network effect enhances service quality, leading to improved user experiences and solidifying its market position.
- Large User Base: Uber completed 3.8 billion trips in Q4, boasting 9.7 million active drivers and couriers, where the growing user base not only enhances service quality but also increases market share and customer loyalty.
- Attractive Valuation: With a forward price-to-earnings ratio of 21.1, below the S&P 500 index, and optimistic management commentary, it indicates a prime opportunity for investors to buy this growth stock, highlighting its substantial future potential.
See More
Analysis of Lucid's 70% Stock Decline
- Significant Delivery Shortfall: Lucid delivered only 4,369 vehicles in 2022, far below its promise of 20,000, with 6,001 in 2023 and an expected 10,241 in 2024, highlighting severe challenges in supply chain and market competition that have eroded investor confidence.
- Executive Turnover Impact: Founder Peter Rawlinson resigned in early 2025, and the lack of a new CEO has created uncertainty in leadership, potentially exacerbating market concerns about Lucid's future and its strategic execution capabilities.
- Government Support and Market Opportunities: Despite challenges, Lucid benefits from over 60% ownership by the Saudi Arabian Public Investment Fund and plans to deploy 20,000 autonomous Gravity SUVs in partnership with Uber and Nuro over the next six years, indicating potential growth opportunities in the market.
- Optimistic Future Revenue Projections: Analysts expect Lucid's revenue to grow from $1.3 billion in 2025 to $4.6 billion by 2027, primarily driven by increased sales of Air sedans and Gravity SUVs, although it must overcome production and market challenges to achieve profitability.
See More
Investors Spooked by High AI Costs Amid Tech Sell-Off
- Intel's Turnaround: Under CEO Lip-Bu Tan, Intel (INTC) is enhancing chip efficiency with its 18A manufacturing process, and despite a stagnant revenue of $53 billion for 2025, its stock has surged over 140% in the past year, indicating market optimism about its recovery.
- Uber's Management Uncertainty: Uber (UBER) faces uncertainty with its CFO stepping down and fears of being sidelined by Tesla and Alphabet, leading to a stock decline; however, partnerships with Waymo and GM could bolster its autonomous driving efforts, and a P/E ratio near 15 suggests undervaluation potential.
- Amazon's Value Proposition: Following its Q4 2025 earnings report, Amazon's (AMZN) P/E ratio has dropped to 29, reflecting its newfound attractiveness, despite a planned $200 billion capex for 2026 in AI and cloud; a $244 billion backlog in AWS and AI, up 40% year-over-year, signals strong future returns.
- Market Sentiment Impacting Tech Stocks: Investor concerns over high AI costs have led to a broad sell-off in tech stocks, yet historical trends suggest such situations are often temporary, potentially creating opportunities for investors to reassess and buy into companies like Intel, Uber, and Amazon.
See More
Billionaire Ackman Takes $2B Position in Meta
- Portfolio Restructuring: Ackman's Pershing Square Capital Management has opened a $2 billion position in Meta Platforms, making it the fund's fourth-largest holding, reflecting strong confidence in AI stocks and expected long-term growth potential for Meta.
- Concentration in AI Investments: Over 50% of Ackman's portfolio is allocated to AI stocks, with Uber, Alphabet, and Amazon representing 20%, 19%, and 8.7% respectively, indicating his bullish outlook on the AI sector, which may enhance these companies' market performance.
- Meta's Advertising Potential: By integrating generative AI into its social media advertising platforms, Meta has improved ad click-through rates and pricing power, which is expected to significantly enhance operational results and further solidify its leadership in the advertising market.
- Market Valuation Advantage: Meta's current share price appears undervalued with a forward P/E ratio of 18.6, reflecting an 11% discount to its average over the past five years, providing an attractive opportunity for investors, and Ackman's investment may draw market attention.
See More
Uber Plans to Offer Various Securities for Sale
- Securities Offering Plan: Uber Technologies has indicated in its prospectus that it may periodically offer or allow selling shareholders to sell a mix of securities, including common and preferred stock, showcasing the company's flexibility and diversified financing strategy in the capital markets.
- Diverse Security Types: The securities could include common stock, preferred stock, debt securities, warrants, purchase contracts, and guarantees, indicating Uber's approach to cater to various investor needs through a diversified financing method.
- Conversion Mechanism: According to the prospectus, these securities may also be issued upon the conversion or exercise of other described instruments, which could attract more investors and enhance the company's capital base through this flexible structure.
- Market Reaction Anticipation: This move by Uber is likely to draw attention in the capital markets, especially in a highly competitive environment, as it aims to strengthen its market position and financial stability through diversified financing options.
See More
Uber Plans to Expand Delivery Operations in Europe
- Market Expansion Plan: Uber is set to enter seven additional European countries, including Austria, Denmark, Finland, and Norway, by 2026, aiming to generate an additional $1 billion in gross bookings over three years, significantly enhancing its competitive position in the European market.
- Competitor Analysis: Uber's expansion will compete directly with Finland's Wolt, which was acquired by DoorDash in 2022, making this move not only a battle for market share but also a strategic positioning amid a wave of consolidation in the European food delivery sector.
- Acquisition Strategy: Recently, Uber announced plans to acquire Getir's food delivery business in Türkiye, which will enhance its ability to meet restaurant demand and leverage global technology to improve service efficiency, further solidifying its market position.
- Automation Services: Uber also plans to automate its delivery services using drones and robots, which will not only increase operational efficiency but also provide faster service responses in a competitive market, thereby enhancing customer satisfaction.
See More
