Waymo won’t kill Uber, this investor says

Murray Wealth Group president Jamie Murray told BNN Bloomberg’s Market Call on May 25 that Uber Technologies (Uber Technologies Stock Quote, Chart, News, Analysts, Financials NYSE:UBER) remains well-positioned despite investor concerns about autonomous vehicles.

Murray said Uber’s core rideshare and food delivery businesses continue to perform well, with revenue, cash flow and user growth all moving in the right direction. He also pointed to growing adoption of Uber One, the company’s membership program.

“Everything is great with the core Uber business,” Murray said.

He said the reason the stock has not worked as well over the past year is that investors are worried Uber could be disrupted by autonomous vehicle players such as Waymo and Tesla.

“People who’ve ridden in a Waymo love Waymos,” Murray said. “They’re worried that Uber’s going to be left behind as these new forms come into play.”

But Murray said Uber is not standing still. He said the company has autonomous vehicle partnerships with about a dozen startups, including Waabi, Nuro and Wayve, and he expects more visible progress over the next year.

“Over the next 12 months, I think you’re really going to see them roll out a lot of these launches,” Murray said. “You’re going to see Uber become a solid player in the AV marketplace.”

Uber shares have gained 41.29% over five years. Of the analysts covering the stock, 53 rate it “Buy” and seven rate it “Hold,” with a consensus price target of US$104.70.

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