Uber (UBER) shares have had a rough ride in 2024, lagging behind the broader market with only a 12% gain over the last 12 months. However, my bullish outlook remains intact, considering that recent underperformance doesn’t reflect any weakness in the company’s business fundamentals. The company has been posting solid revenue and profit growth while generating impressive cash flow. The main factor weighing on investor sentiment seems to be the fear that robotaxis could disrupt the ride-sharing industry in the coming years.
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While this is a valid concern, it arguably remains a distant risk. Uber has the capacity to adapt to emerging technologies, backed by its flexibility to make new investments, diversify its business, and maintain a financially viable ecosystem within the broader mobility industry.
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