Uber has been a member of the Zacks Focus List portfolio since 08/16/2019, but we are highlighting it as our Stock of the Week as the company stands at a pivotal moment in its growth trajectory. The company has successfully transformed from a cash-burning startup to a profitable technology platform with expanding margins, diversifying revenue streams, and strong free cash flow generation. Despite recent market concerns regarding autonomous vehicle competition, Uber’s strategic positioning, network effects, and platform economics create an asymmetric investment opportunity with substantial upside potential and limited downside risk.

Uber is substantially profitable now, generating nearly $10 billion net income and $6.8 billion free cash flow in 2024, driven by +21% growth in gross bookings. Crossing the inflection point has enabled the company to now be able to scale profitable growth due to substantial operating leverage. We expect positive earnings per share and free cash flow momentum to continue throughout 2025.