UBER
Good quarter, but the vibe is: show me the robotaxis
Uber just gave investors a decent second quarter, but the real conversation quickly shifted to what it’s doing with autonomous vehicles — aka the expensive future that everyone wants, but nobody wants to pay for alone.
Analysts came out swinging with a mix of praise and caution. DA Davidson kept its Buy rating but cut its target to $100 from $107, Needham stayed Buy at $109, and Cantor trimmed to $90 while keeping an Overweight rating. Translation: the business is fine, but the AV story is still the thing hanging over the stock like a cloud with venture capital in it.
The core business is doing the heavy lifting
The good news for Uber is that the everyday engine is still humming:
- U.S. mobility growth is accelerating
- Global delivery is holding up
- Cost discipline is helping the numbers
- Uber One adoption is giving the model a little extra juice
That’s the boring stuff, which is usually exactly what investors want when the futuristic stuff gets messy.
The AV bet is getting bigger
Here’s where the plot thickens. Uber says it plans to commit more than $10 billion across equity investments, infrastructure, and vehicle offtake over the coming years as it tries to become a top AV rides platform by 2029.
That’s a huge bet, and analysts basically agree on the headline: if Uber proves it can turn autonomy into a real business, the multiple can stretch. If not, the market may keep treating the stock like a good app with an expensive science project attached.
Big picture: Uber still looks healthy today, but investors are clearly pricing the company on what it becomes next — not just how many rides it sells right now.