Should you sell your Uber stock?

On August 6, Roth Capital Markets analyst Rohit Kulkarni reiterated a “Buy” rating and (US) $110.00 price target for Uber Technologies (Uber Technologies Stock Quote, Chart, News, Analysts, Financials NYSE:UBER) after the company posted strong second-quarter results. The stock has climbed nearly 50% since April, and Kulkarni said Uber mostly delivered on high expectations.

“Delivery bookings accelerated to the highest growth rate since the pandemic and key metrics came above expectations,” he said. “$20bn buyback and commitment to return 50% surplus cash was a surprising positive. The mobility segment is benefiting from lower prices, as early 3Q trends illustrate demand elasticity gains. We think today’s results set a high bar for Lyft and DoorDash.”

After dipping as much as 4% in early trading on August 6, Uber shares narrowed their losses and were roughly flat to down 1% by midafternoon. The stock, priced at US$88, is valued at around 16x estimated 2026 free cash flow and 24x projected 2026 GAAP EPS.

“Sentiment has heavily factored AV announcements over the past ~6 months, and we think that Uber can continue to see upside from new launches as well as updates to the trajectory of existing partnerships over the medium-term,” Kulkarni said. “We see a near-term relief assuming healthy travel trends towards ~$100/sh, followed by a medium-term target exceeding ~$120/share or $250bn market cap, when we have a clear line of sight into $10bn-plus ARR cash flows.”

Robotaxis appear to be boosting demand for ridesharing, Kulkarni said, with Waymo’s presence in Austin leading to more trips than expected. Uber sees this as evidence that Robotaxis expand the total addressable market. Management is testing three AV business models: merchant, agency, and owned, and sees early signs that ownership, such as its Lucid and Neuro partnership, could be most profitable. That model is still in its early stages, with long-term plans aiming for an asset-light structure.

On macro resilience, Uber is seeing some stability despite FX headwinds. Trip growth in Mobility held steady at 19% for four straight quarters, and July growth picked up. Uber One subscriptions reached 36 million, representing over 40% of bookings. Monthly active users rose 15% year over year, with usage per user also increasing.

Kulkarni said the regulatory environment is improving in the U.S.

“As the largest cost item outside Drivers, insurance growth slowing to +6% YoY in June, the lowest point in the past three years, indicates platform trends that are expected to contribute to healthy long-term trips growth,” he said. “And despite passing on insurance savings to riders, UBER has increased profit per trip. Any improvements to mandatory insurance limits or policy changes in California would be a significant source of cost savings. LA remains the most challenging insurance market with 45% of GBs going to insurance costs”

Kulkarni has made minor adjustments to his Uber forecasts, trimming his 2025 EBITDA estimate to $8.75-billion from $8.94-billion, while lifting expected revenue to $51.62-billion from $50.62-billion. Looking to 2026, he now models $11.83-billion in EBITDA and $59.76-billion in revenue, both slightly higher than his previous outlook, reflecting steady long-term confidence in the company’s growth trajectory.

-30-