Where Will Uber Technologies Stock Be in 3 Years?

• Uber boasts awesome gross maturation and is becoming a currency cow.

• However, uncertainty implicit self-driving contention has weighed connected the stock.

• If Uber tin support its business, the banal could beryllium successful for large things ahead.

• 10 stocks we similar amended than Uber Technologies ›

Often, erstwhile you look up the past banal show of the world's astir recognized companies, deliberation names similar The Home Depot, Microsoft, oregon Amazon, you'll find sparkling way records of market-beating concern returns. Some person adjacent turned humble sums into fortunes.

Uber Technologies (NYSE: UBER) could acceptable nicely into that supra radical arsenic a precise well-known brand. Almost cipher calls a rideshare these days; they telephone an Uber. However, the banal hasn't delivered arsenic you mightiness expect. Uber has underperformed the S&P 500 scale since its IPO successful the mediate of 2019, and rather badly, I should add.

But why? And should investors expect brighter days ahead?

A dive into Uber's concern provides a glimpse of wherever the banal could beryllium trading successful 3 years. Here is what you request to know.

Uber has the concern numbers to backmost up its sanction recognition. It dominates astir three-quarters of the ridesharing marketplace successful the United States, a applicable duopoly with arch-rival Lyft. Uber operates globally, too. It services astir 15,000 cities worldwide, successful much than 70 countries.

The planetary ridesharing marketplace continues to grow, an tremendous tailwind for Uber arsenic the marketplace leader. Precedence Research estimates it volition turn astatine a compound yearly maturation complaint of much than 18% implicit the adjacent decade, reaching $788 cardinal by 2035.

Uber besides continues to find caller ways to marque money. It has expanded its services to see courier services, nutrient and market delivery, and car rentals, and monetized its customers and their information by introducing integer advertizing and a subscription programme for high-frequency users.

Combine each of that, and you get fantastic growth. Revenue is increasing by 20% twelvemonth implicit year, an awesome gait for a concern with astir $50 cardinal successful yearly revenue. Uber has grown ample capable that nett margins are soaring arsenic gross maturation outpaces expenses. Uber has converted 17.4% of its gross into escaped currency travel implicit the past 4 quarters and is trending up.

Since the banal is up 25% implicit the past year, it would beryllium unfair to accidental that Wall Street has wholly abandoned Uber stock. Still, the banal presently trades astatine a price-to-earnings (P/E) ratio of conscionable implicit 19 times 2026 net estimates. That's rather a debased valuation for a concern with specified steadfast and profitable growth.