Over the past six months, Uber has been a great trade. While the S&P 500 was flat, the stock price has climbed by 38.7% to $84.65 per share. This run-up might have investors contemplating their next move.
Is it too late to buy UBER? Find out in our full research report, it’s free.
Why Are We Positive On UBER?
Notoriously funded with $7.7 billion from the Softbank Vision Fund, Uber (NYSE: UBER) operates a platform of on-demand services such as ride-hailing, food delivery, and freight.
1. Monthly Active Platform Consumers Skyrocket, Fueling Growth Opportunities
As a gig economy marketplace, Uber generates revenue growth by expanding the number of services on its platform (e.g. rides, deliveries, freelance jobs) and raising the commission fee from each service provided.
Over the last two years, Uber’s monthly active platform consumers, a key performance metric for the company, increased by 13.9% annually to 170 million in the latest quarter. This growth rate is among the fastest of any consumer internet business and indicates its offerings have significant traction. 
2. Outstanding Long-Term EPS Growth
We track the change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Uber’s EPS grew at an astounding 183% compounded annual growth rate over the last three years, higher than its 28.5% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
3. Increasing Free Cash Flow Margin Juices Financials
Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.
As you can see below, Uber’s margin expanded by 17.7 percentage points over the last few years. This is encouraging, and we can see it became a less capital-intensive business because its free cash flow profitability rose more than its operating profitability. Uber’s free cash flow margin for the trailing 12 months was 17.2%.
Final Judgment
These are just a few reasons Uber is a high-quality business worth owning, and with its shares beating the market recently, the stock trades at 20.1× forward EV/EBITDA (or $84.65 per share). Is now a good time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More Than Uber
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
