Uber stock projected to grow, strong consumer relationships

Uber's stock has experienced significant changes over the past five years, with a 251% increase as of March 19, 2025. However, this journey has not been without challenges, as the stock has seen some ups and downs that could shake investors' confidence. The COVID-19 pandemic had a negative impact on Uber, causing decreases in trips, bookings, and revenue in 2020. Many consumers canceled travel plans due to restrictions. But during this time, Uber's delivery service thrived as more people chose to order food and other items to their homes. The company has since bounced back strongly, reporting $163 billion in gross bookings and $44 billion in revenue in 2024. Looking ahead, Uber continues to expect strong growth. In the first quarter of 2025, management anticipates a 17% increase in gross bookings compared to the previous year. Analysts predict a 15% rise in revenue for the entire year. One area of concern for investors is the rise of autonomous driving technology, which could impact ride-hailing services. However, Uber's established global consumer base and strong brand give it an advantage. Uber is also collaborating with tech companies like Alphabet's Waymo and Nvidia to develop self-driving technology. This relationship may help the company maintain a competitive edge in the market. Currently, Uber's stock appears to be a good investment opportunity. It trades at a forward P/E ratio of 15.8, which is relatively low compared to the Nasdaq 100's 24.5. Billionaire investor Bill Ackman's firm has started buying shares, expressing confidence that Uber's earnings could grow more than 30% each year. Overall, Uber is in a solid position to perform well in the coming years, though the returns may vary from past performance.