$UBER · Parkev Tatevosian, CFA · 2026-11-07

Uber announced its quarterly financial results, which showed revenues rising 10% to $14.8 billion. In addition, Uber's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 31% to $3 billion.

Uber's stock rose by about 7% at the time this video was recorded, the day after the company announced its quarterly financial results . Of course, there was also some optimism surrounding the results of the US elections and what that might mean for Uber's stock, which I will discuss in detail in this video.

I will also be updating my fair value estimate for Uber, and I will let you know if I still think that Uber is one of the best stocks to buy right now, which is what I have been saying all year.

Unfortunately, even after today's 7% increase, Uber's stock is still underperforming the broader S&P 500 index. Uber's management team understands why its stock is underperforming compared to the S&P 500, and this is due to self-driving car technology.

The management team discussed this in the first paragraph of their statement to investors, saying that their focus on autonomous driving is now on commercial implementation. With around 700 fully autonomous vehicles expected on the Uber platform by the end of this year, the number is projected to nearly triple by the end of next year, reaching 2,000 vehicles by the end of 2027.

Uber has partnerships with several autonomous vehicle providers, but Tesla is known not to be collaborating with Uber.

I mentioned in the introduction that there were some election results that specifically benefited Uber. With the loss of the politicians backed by Elon Musk, there is growing enthusiasm among Uber stock investors that Tesla's expansion into self-driving car technology will be slower than expected.

One way Uber can slow down and counter these risks is by investing in this technology itself. One way to do this is by generating strong cash flows from its core business, and then using that liquidity to invest in self-driving technology, either through partnerships or by purchasing vehicles directly.

Cash flow from operations rose to 2.6 billion in the last quarter that was completed.

Looking ahead, the management team expects continued growth with total bookings reaching $64.25 billion. At the midpoint, this would represent a 20% increase compared to the same period last year.

Adjusted earnings before interest, taxes, depreciation and amortization rose to about $3.18 billion, up from about $3 billion in the previous quarter.

Another strong advantage for Uber is its existing relationships with customers and brand loyalty. It boasts more than 215 million monthly active customers on the platform, representing a 14% year-on-year increase.

In addition , Uber probably boasts hundreds of millions of other customers who are not monthly active but may be active periodically, once every 6 months, or once a year. Certainly, Uber has millions more people who have the app on their phones, have payment information on file, and have previously used Uber.

These customer relationships are highly valued when you consider that a new self-driving car provider , such as Tesla for example, will have to build those relationships. However, not all the news was good for Uber.

In fact , its mobility division saw a 2% decrease in revenue.

This was a result of declining revenue from its mobility business . You can see that total bookings in the mobility business rose by 18 % year-on-year, but the percentage that Uber kept for itself was lower compared to the same period last year.

The difference between what people spend on Uber and what Uber keeps is what goes to the drivers, and that's why I've been talking about how self-driving car technology is not just a negative risk to Uber, but also a possibility, and an opportunity.

This could be money, roughly $22 billion, that Uber could use to invest in self-driving cars. If the cost of a self-driving Uber trip is lower than the cost of a trip with a driver, it could actually boost profitability, or it could make Uber more attractive as it can reduce customer service costs , and more customers will choose to forgo a car, or perhaps families will choose to own only one car instead of multiple cars.

So, it's as much an opportunity as it is a huge risk. Even after today's surge, Uber is still being sold for less than its true value. A forward price-to-earnings ratio of only 16.3 is, in my opinion, a low valuation for a company with such prospects.

I think the biggest reason is that investors view self-driving car technology only as a risk, and not as an opportunity. In addition , I think investors are overestimating how quickly self-driving car technology will be available in the United States and around the world.

I think the IPO process will be much slower than investors in companies like Tesla and other self-driving technology providers expect. Bureaucracy will significantly slow this down ; Even if the technology is ready, the bureaucracy of legislation and obtaining approvals will delay things more than the development of the technology itself.

In addition to considering the future earnings multiple, I updated my valuation of Uber based on a discounted cash flow model. I valued the company at $125 per share, and even after the stock rose by more than 7.35% at the time of recording this video, it was still undervalued by about 75% according to my estimates using a discounted cash flow model.

So, to answer the question I posed in the title , yes, I still think Uber is one of the best stocks you can buy right now.

I have a relatively high level of conviction and confidence in this ranking, and I updated it on November 4, 2026.