4 Reasons to Buy Uber Stock Like There's No Tomorrow

Key Points

• Uber's growth in recent years has been tremendous, with users and revenue soaring.

• The business is generating robust profits as it proves how scalable the platform can be.

• With a powerful network effect and brand, Uber's success should continue for a long time.

• 10 stocks we like better than Uber Technologies ›

Uber Technologies (NYSE: UBER) has been hitting its stride. And the market is taking notice, as investors view the business in an extremely favorable light. As of Sept. 17, shares are up 54% in 2025 and 191% in the past three years. That's an incredible rise that has driven its market capitalization to nearly $200 billion.

It's important not to simply assume that the gains will continue. Investors should think about the factors that can support further upside. In this instance, it's easy to be optimistic. Here are four reasons to buy Uber stock like there's no tomorrow.

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Image source: Getty Images.

1. Growth

The first reason to add Uber to your portfolio focuses on the company's growth, which has been spectacular. In the latest quarter (Q2 2025, ended June 30), Uber had 180 million monthly active platform consumers (MAPCs), up from 76 million exactly seven years ago. Unsurprisingly, this has led to soaring gross bookings and revenue in both the mobility and delivery segments.

Uber is currently available in 15,000 cities across the globe. However, there is still expansionary potential. Getting consumers to use multiple services, known as cross-promotion, is a big opportunity, as is boosting usage frequency.

There's also the Uber One subscription program, which counts 36 million members. They spend significantly more than non-members. Increasing the share of MAPCs that become Uber One members can drive substantial growth.

2. Profitability

In 2019, Uber posted a whopping operating loss of $8.6 billion. Since then, management's intense focus on running the business in a more efficient manner has worked wonders. In the last six months, the company reported operating income of $2.7 billion. This impressive profitability is the second reason to buy the stock.

Uber is proving that it can scale up in an extremely lucrative manner. Wall Street is bullish. Consensus analyst estimates call for earnings per share to increase at a compound annual rate of 23% between 2025 and 2027, much faster than projected revenue gains.

Free cash flow is also pouring in, totaling $2.5 billion in the second quarter. This is giving the leadership team confidence. They just announced a $20 billion share buyback authorization.

3. Autonomous vehicles

There are a lot of companies out there working on autonomous vehicle (AV) technology. While Uber previously had an AV unit, it sold this segment in 2020. Instead, the business is partnering with others, whether car makers or software providers, in an effort to help develop this technology. There are currently 20 partners.

Uber is in an advantageous position because it directly controls the relationship with 180 million MAPCs. Therefore, it has access to a large pool of demand. And it has expertise in operating a huge tech platform. This gives it a capital-light way to play in the AV market.

This doesn't mean that Uber's strategy is completely fail-safe. For instance, there is a risk that Tesla could be successful in its efforts to scale up its robotaxi service. This would create a competing platform to Uber.

4. Economic moat

Buying and holding companies that possess an economic moat, or durable competitive advantages, can contribute to investing success. Uber has this important characteristic, which is the fourth reason to add the business to your portfolio.

As a platform, the company benefits from a powerful network effect. More riders (drivers) add more value to drivers (riders), making the service more useful as it gets bigger.

Uber also has noteworthy intangible assets that support its ongoing success. Its brand is so strong that its often used interchangeably as a verb, indicating robust user mindshare. And the company's ability to collect and utilize its data is also worth pointing out. This has spawned a new business line with digital advertising, a segment that raked in $1.5 billion in annualized revenue in Q1 earlier this year.

Uber's growth trajectory, rising profits, position in the AV market, and economic moat are four reasons to buy the stock like there's no tomorrow.

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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla and Uber Technologies. The Motley Fool has a disclosure policy.