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Uber (NYSE:UBER) stock will either soar ten times "in a few years" or it will drop to $0, LikeFolio co-founder Landon Swain said recently.
The analyst explained that, if Uber is able to make its vehicles autonomous, its automobiles will become extraordinarily cheap to operate, causing the company's profits to climb tremendously. Alternatively, Uber may not be able to find a top-notch partner that will enable it to offer autonomous rides, Swain believes.
A close up view of a hand holding a smartphone, using a ride sharing app.
If the latter scenario materializes, Tesla (TSLA), which is developing autonomous robotaxis, could gain first-mover advantage in the sector over Uber, according to the analyst. Uber would struggle if that does occur, he thinks.
Consequently, Swain believes that investors should view Uber (NYSE:UBER) stock as a "flier" that will either rise tremendously in the next decade or drop to $0 during that time period.
Meanwhile, most of Uber's revenue gains last quarter were generated by higher prices, rather than gaining users. Indeed, the company is adding users at a slower rate than investors had hoped to see, Swain reported.
Uber (NYSE:UBER) stock has risen just 2.2% in 2024.
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Disclosure: None. This article is originally published at Insider Monkey.