Uber has become a household name in transportation and food delivery, but is its stock a smart investment for 2025? In this analysis, we’ll break down Uber’s recent performance, future growth potential, and the key risks every investor should know before buying. Let’s find out if Uber is a buy, hold, or sell this year.

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Strong Growth with Improving Profitability
Uber has consistently demonstrated its ability to scale. Over the past five years, its revenue surged by 212%, jumping from $14.1 billion in 2019 to $44 billion in 2024. What’s remarkable is that this growth occurred despite major challenges like the pandemic, inflation, rising interest rates, and economic uncertainty—highlighting Uber’s resilience and adaptability.

However, profitability has historically been a weak spot. That’s starting to change. After reporting a significant operating loss of $3.8 billion in 2021, Uber made a major turnaround, delivering $2.8 billion in operating income last year. Looking ahead, Wall Street analysts expect this key profitability metric to grow at a compound annual rate of 55% from 2024 through 2027.

What’s Ahead for Uber in 2025?
Looking into the first quarter of 2025, Uber projects its bookings to grow between 17% and 21% year over year (on a constant currency basis), while adjusted EBITDA is expected to climb 30% to 37%. For the entire year, analysts forecast a 14% increase in revenue and a 32% rise in adjusted EBITDA.

Uber anticipates that the same growth drivers from 2024—such as strong demand for rides and delivery services—will continue to support its expansion in 2025. The company also plans to gradually introduce more autonomous vehicles, which could significantly cut labor costs by reducing reliance on human drivers.

However, Uber is also dealing with regulatory headwinds. Two investigations by the Federal Trade Commission (FTC), initiated in late 2024, are still ongoing—one concerning Uber One's subscription model and another related to underpayment claims involving New York City drivers. It's uncertain how these inquiries will proceed under the Trump administration, but they could impact Uber's short-term valuation and investor sentiment.

Uber’s Competitive Position
There’s no denying that Uber operates in a highly competitive environment. In the U.S., key players like Lyft and DoorDash are strong challengers, while international markets bring additional rivals into the picture.

Despite this, Uber’s massive scale sets it apart. By the end of 2024, the company had 171 million active users and generated $162.8 billion in gross bookings—proof of its strong market presence.

Data from Bloomberg Second Measure shows that Uber commands about 75% of the U.S. ride-hailing market, far ahead of Lyft. In food delivery, Uber trails DoorDash, which held a 67% market share in 2024. However, Uber has a strategic advantage: it operates both ride-hailing and delivery services, giving it a broader, more integrated platform than most of its competitors.

Should You Buy, Sell, or Hold Uber Stock Right Now?
Uber is experiencing solid growth, benefiting from a strong competitive edge and the power of economies of scale that are steadily improving its profitability. In a market where many stocks appear overvalued, Uber still trades at a relatively attractive price.

Given these factors, buying and holding Uber stock in 2025 appears to be a smart long-term move. While short-term challenges like ongoing FTC investigations and persistent inflation may limit immediate upside, Uber’s continued expansion and innovation could drive substantial gains in the coming years.

Understand What You’re Paying For
Uber’s stock hasn’t had a great year, down 7% over the past 12 months (as of April 10), underperforming the Nasdaq Composite, which has remained nearly flat during the same period. Since its IPO in May 2019, Uber has also lagged behind the broader market. This long-term performance may be discouraging for some investors.

However, as previously mentioned, Uber possesses key characteristics that make it a high-quality business in the eyes of many analysts. The company boasts solid growth, profitability, and network effects. Additionally, Uber’s management is keenly aware of and positioning the company to capitalize on developments in autonomous vehicle technology.

For those looking to invest, Uber’s stock presents a strong buying opportunity. With a forward P/E ratio of 21.4, this is an attractive valuation for a leading player in its category.

Is Now the Right Time to Invest $1,000 in Uber Technologies?
Before deciding to invest in Uber Technologies, here’s something to think about:

The Motley Fool Stock Advisor team recently highlighted what they consider to be the 10 best stocks for investors to buy right now, and Uber didn’t make the list. The stocks that did could deliver significant returns in the years ahead.

To put this into perspective, consider when Netflix was recommended on December 17, 2004. A $1,000 investment at the time would be worth $613,546 today!* Or when Nvidia made the list on April 15, 2005—investing $1,000 back then would have turned into $695,897!