San Francisco, California-based Uber Technologies, Inc. (UBER) offers a platform for transportation and food ordering services. With a market capitalization of $169.5 billion, Uber operates the largest mobility platform worldwide, encompassing around 70 countries and over 10,000 cities.

Over the past 52 weeks, shares of Uber have significantly outperformed the broader market. Specifically, UBER shares increased by 19.3%, while the S&P 500 Index ($SPX) gained 11.7%. Year-to-date, UBER stock has risen 34.1%, contrasting with the S&P 500’s decline of 4.7%.

Analyzing further, Uber has outstripped the Technology Select Sector SPDR Fund’s (XLK) growth of 9.7% over the last year and its YTD decline of 8.4%.

Despite reporting its strongest quarter ever, Uber Technologies’ stock dropped 7.6% following the release of its Q4 results on February 5. Uber achieved record demand for its services, driving revenues up by 20.4% year-over-year to around $12 billion, which surpassed analysts’ expectations by 1.7%. Additionally, its income from operations grew by 18.1% year-over-year to $770 million. The company also posted an impressive 122.1% year-over-year growth in free cash flow, amounting to $1.7 billion.

However, a stronger dollar caused Uber’s gross bookings growth guidance for Q1 2024 to fall short of expectations, resulting in a noticeable drop in stock prices. Following this initial decline, UBER stock rebounded by 8.6% in the subsequent trading session.

Looking ahead to fiscal year 2025, which ends in December, analysts predict UBER’s earnings per share (EPS) will decline nearly 45% year-over-year to $2.51. Uber’s earnings surprise history is mixed; the company has exceeded consensus estimates in three of the last four quarters but underperformed once.

Among 47 analysts covering the stock, the consensus rating remains a “Strong Buy,” supported by 35 “Strong Buy” ratings, three “Moderate Buys,” and nine “Holds.”

This configuration shows slightly less optimism than three months ago, when there were 36 “Strong Buy” ratings. On April 3, Wells Fargo analyst Ken Gawrelski increased UBER’s price target to $90 while keeping an “Overweight” rating.

As it currently stands, Uber Technologies’ mean price target is $89.43, suggesting a 10.6% premium to current levels. The highest target of $115 indicates significant upside potential of 42.2%.

On the date of publication, Aditya Sarawgi had no direct or indirect positions in any of the securities mentioned in this article. All data is for informational purposes. For further information, please view the Barchart Disclosure Policy here.