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Key Takeaways
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Uber is set to report fourth-quarter earnings before the bell Wednesday, with revenue projected to have grown year-over-year but profit to have declined.
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Analysts are bullish on Uber's stock, with the consensus price target tracked by Visible Alpha above all-time highs.
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Analysts said that the caution around autonomous vehicles that hurt Uber's stock in 2024 has been "overdone."
Uber Technologies (UBER) is set to report fourth-quarter earnings before the bell Wednesday, with revenue projected to have grown year-over-year but profit to have declined.
Analysts are bullish on the rideshare giant's stock, with all 25 analysts tracked by Visible Alpha rating it a "buy." The stock has an average price target of $90.50, which is 35% higher than Friday's closing level.
Uber is expected to report a roughly 18% year-over-year revenue gain to $11.76 billion, according to estimates compiled by Visible Alpha. However, the company's net income is projected to have declined by 27% to $1.04 billion, as its Q4 2023 profit included a $1 billion net benefit from a revaluation of its equity investments.
Analysts Say Autonomous Vehicle Concerns Held Back Stock in 2024
Bank of America analysts said in a note this week that they believe the concern around autonomous vehicles that hurt Uber's stock last year is "overdone." They noted that the stock ended 2024 down 2%, but said that this year will likely bring "better visibility into the lengthy timeline" of the rollout and public adoption of autonomous vehicles (AVs), which could provide both opportunities and risks for Uber.
Both Uber and rival Lyft (LYFT) have signed deals with a number of AV and tech companies, like Alphabet's (GOOGL) Waymo and Nvidia (NVDA), to partner in the AV movement. The ridesharing firms also face competition from Tesla (TSLA), which has said it is looking to bring its AVs to the road in certain markets this year.
Uber shares gained about 11% in January but are essentially flat over the past 12 months.
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