We recently published a list of 15 Best Big Tech Stocks to Buy According to Analysts. In this article, we are going to take a look at where Uber Technologies, Inc. (NYSE:UBER) stands against other best big tech stocks to buy according to analysts.
Big Tech comprises some of the largest and most influential companies in the world, recognized for their sheer size, extensive customer base, and financial strength. Leading this group are five major companies that have been at the forefront of the tech sector economy, driving innovation and shaping consumer behavior. Over the years, Big Tech firms have benefited from the widespread adoption of smartphones and high-speed internet, increased demand for digital services, the rise of social media, strong demand for cloud computing, e-commerce, and digital advertising.
How Did the Big Tech Companies Become The Giants They are Today?
Beyond technological advancements, these companies have also benefited from several phenomena. The first is network effects—the more users a platform has, the more valuable it becomes. Other contributing factors include economies of scale as they expanded through acquisitions and the ease of scaling digital businesses globally; access to vast amounts of user data used to enhance products, target ads, and create highly personalized services; and their deep pockets (strong balance sheets) that enabled them to invest heavily in R&D, hire top talent, and operate during challenging times. This financial strength also allowed them to aggressively invest in AI and maintain a first-mover advantage. While challenges persist, we believe these companies will continue to innovate, expand their influence, and shape the future of technology.
In a recent interview with Yahoo Finance, Wedbush Securities’ Global Head of Technology Research, Dan Ives, expressed optimism about the future of Big Tech, stating:
“Microsoft’s $80 billion investment announcement and then Mark Zuckerberg’s announcement that his company plans to spend up to $65 billion on artificial intelligence is “the start of a massive build-out of AI Capex” that I think the Street is massively underestimating. And it’s the multiplier – every dollar spent on a NVIDIA chip, means $8 to $10 multiplier goes to the rest of tech – that’s bullish for tech. Of course, with Trump and Stargate, it just shows that fourth industrial revolution is just starting.”
While Big Tech typically refers to the top five mega-cap companies, we have prepared an extended list of 15 stocks that have made a significant impact on the tech landscape and are equally innovative and transformative as the top five.
Our Methodology
To list the 15 best Big Tech stocks to buy according to analysts, we screened companies with market capitalization of at least $100 billion and potential upside of at least 15%. Ultimately, the stocks were arranged in ascending order of their potential upside.
Note: All pricing data is as of market close on February 3.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Is Uber Technologies Inc. (UBER) the Best Big Tech Stock to Buy According to Analysts?
A close up view of a hand holding a smartphone, using a ride sharing app.
Uber Technologies, Inc. (NYSE:UBER) defines itself as a technology platform that leverages a massive network, leading technology, operational excellence, and product expertise to facilitate movement from point A to point B. The company provides ride-hailing, food delivery, and freight transportation services. Its diverse offerings include Uber Eats for food delivery, Uber Freight for logistics, and advanced technologies like autonomous vehicles and aerial ridesharing.
Uber Technologies, Inc. (NYSE:UBER) is well-positioned to benefit from the growing demand for convenient transportation and delivery services, driven by urbanization and changing consumer preferences. The company’s focus on expanding its delivery segment through Uber Eats and enhancing its logistics capabilities with Uber Freight provides multiple revenue streams. Additionally, the company’s investments in autonomous vehicle technology and partnerships with various automakers aim to reduce operational costs and improve efficiency in the long term.
In early January 2025, Goldman Sachs added Uber Technologies, Inc. (NYSE:UBER) to its U.S. conviction list. Despite headwinds in its Mobility business, Goldman expects the company to meet its long-term growth and profitability targets. They also see the company as well-positioned to expand end markets, increase profitability, and capitalize on cross-sell and “flywheel” effects across its platform.
Overall, UBER ranks 6th on our list of best big tech stocks to buy according to analysts. While we acknowledge the potential of UBER to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UBER but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
