Why Uber Stock Is a Strong Buy for Long-Term Growth

Uber Technologies (UBER) has transitioned into a phase of profitable growth. The company delivers strong earnings supported by rising trips and higher customer engagement. Robust growth in revenue and free cash flow highlights the strength of its platform model. This article presents the fundamental and technical performance of Uber to assess the next move in its stock price.

Financial Performance for Uber

Uber reported strong growth across its Mobility and Delivery segments in Q2 2025 earnings. This growth stemmed from a larger customer base and higher usage frequency. According to its Q2 earnings, trips rose 18% year over year, reaching 3.3 billion. The platform effect continues to drive network benefits and strengthen Uber’s competitive position.

Moreover, gross bookings increased 17% to $46.8 billion, while revenue rose 18% to $12.65 billion. The company’s scale allowed it to expand margins, as Adjusted EBITDA grew 35% to $2.1 billion. Net income reached $1.35 billion, reflecting consistent profitability over the past five years as shown in the chart below. This strong profitability reflects higher efficiency and disciplined cost management.

The chart below presents the free cash flow on a quarterly and trailing twelve-month basis. The quarterly free cash flow has steadily climbed to $2.475 billion, while the trailing twelve-month total has surged to $8.54 billion. This dual trend demonstrates short-term consistency and long-term scalability.

This indicates that the business model is now self-sustaining, generating sufficient cash to support reinvestment, acquisitions, and shareholder returns. Investors can view this as evidence that Uber has transitioned from a high-burn growth company into a mature, cash-generating platform with durable profitability, making it a more attractive long-term investment.

Uber expects Q3 gross bookings to be between $48.25 billion and $49.75 billion, representing a 17% to 21% year-over-year increase. Moreover, the adjusted EBITDA is expected to grow by 30% to 36%. These forecasts suggest that management expects continued growth and margin expansion. The company’s partnerships in autonomous driving and strategic acquisitions, such as Trendyol Go, are expected to provide additional upside.

Strategic Partnerships and Innovation Fuel Expansion

Uber is rapidly expanding its platform beyond traditional ride-hailing, using partnerships to unlock new sources of growth. The recent collaboration with ALDI integrates over 2,500 stores into Uber Eats, providing customers nationwide with access to affordable groceries.

By accepting SNAP-EBT payments from the start, Uber captures a significant segment of price-sensitive shoppers. This move broadens Uber’s customer base while also strengthening its position in the high-frequency grocery delivery market, where repeat usage drives long-term revenue.

The company is also investing in next-generation logistics through its partnership with Flytrex. By bringing FAA-approved drone delivery into its platform, Uber aims to reduce delivery times, lower costs, and cut emissions. This innovation helps Uber tackle one of the biggest challenges in last-mile delivery by achieving efficiency at scale.

With over 200,000 drone deliveries already completed by Flytrex, Uber can leverage proven technology to offer faster and greener service. This strategy enhances its competitive edge against rivals like DoorDash and Amazon, which are also experimenting with autonomous logistics.

Moreover, the partnerships with Sephora and Best Buy Company, Inc. (BBY) further expand Uber’s non-food delivery verticals. Sephora makes Uber Eats the first platform to offer prestige beauty products on demand, tapping into a category where immediacy and gifting are key drivers.

Meanwhile, Best Buy integrates consumer electronics into Uber’s ecosystem, ranging from everyday essentials to high-end gadgets. These partnerships create new high-margin opportunities and diversify Uber’s revenue mix beyond food and mobility. These collaborations demonstrate how Uber is transforming its logistics platform into a comprehensive marketplace, positioning itself as a one-stop solution for daily essentials, beauty products, and tech products alike.

Uber Technologies Technical Analysis: Bullish Momentum from Long-Term Breakouts

Long-Term Technical Breakout and Structural Support

The long-term technical outlook for Uber Technologies remains strongly bullish. The stock has been forming a sustained bullish price action since its 2020 lows near $13.71. The 2020 bottom formation is based on an inverted head-and-shoulders pattern with a neckline around $37.

A breakout above $37 in November 2020 triggered a strong surge in Uber’s share price, reaching a record high of $64.05 in February 2021. This high was followed by another bottom formation in June 2022 near $19.90.

The consolidation between 2020 and 2022 created a long-term base pattern. A breakout above the pivotal level near $58 has since driven a surge in Uber’s price. This surge was fueled by the company’s shift from survival mode to profitable growth, supported by strong execution in both Mobility and Delivery.

After bottoming out near mid-2022, Uber benefited from a rebound in ride-hailing demand as global travel resumed. At the same time, its Delivery unit maintained post-pandemic momentum with expansions in grocery and retail services. Moreover, Cost discipline and scale allowed Uber to deliver record EBITDA and free cash flow, which reassured investors about the durability of its business model.

On the other hand, Uber’s strategic moves expanded its growth outlook. Partnerships in retail and beauty opened new revenue streams. Early steps into autonomous and drone delivery positioned Uber as more than just a ride-hailing company. This combination of profitability, innovation, and market expansion fuelled investor confidence, propelling the stock to new highs through 2024.

The chart above presents that the multiple tests of the $58 level were identified as a long-term buy zone. These various tests at $58 confirm Uber has established a solid bottom. With this foundation in place, Uber Technologies appears well-positioned to continue its rally and potentially mark new record highs in the coming months.

Uber Short-Term Price Action: Key Support and Resistance Levels

This bullish price action for Uber is also visible on the daily chart, which shows an intense consolidation phase from March 2024 to March 2025. This one-year consolidation formed a solid bottom pattern, and a breakout above $85 triggered a decisive move higher.

Following the breakout from the $85 region, Uber’s stock has been trading within an ascending channel and continues to mark new record levels. The price now faces strong resistance in the $103–$105 region, and a decisive break above this zone could trigger another sharp surge in Uber’s share price.

The short-term outlook for Uber Technologies is clear on the 4-hour chart, where the stock price is consolidating within an ascending channel capped by strong resistance at the $105 level. Uber continues to trade higher and set new record levels, with the ascending structure presenting a strong buying opportunity for long-term investors.

The channel shows strong support in the $90–$95 region, while $105 acts as a critical resistance zone. A break below $90 could trigger a move toward the long-term support between $80 and $85.

Risks and Challenges Facing Uber’s Growth

Uber faces risks from rising competition in both ride-hailing and delivery. DoorDash, Lyft Inc. (LYFT), and Amazon continue to invest aggressively, which could put pressure on pricing and market share. If demand slows or subsidies increase, Uber’s margins may weaken.

Moreover, the regulatory challenges also remain a threat. Governments worldwide are tightening rules on driver classification, wages, and data privacy. Stricter compliance could raise costs and reduce flexibility. Any legal setbacks in significant markets could impact profitability.

Macroeconomic headwinds add another layer of risk. Inflation expectations surged in 2025, as shown in the chart below. The high inflation and weaker consumer sentiment may lead to reduced discretionary spending on rides and deliveries. If global growth slows, Uber’s expected expansion into new verticals may face greater challenges.

Why Uber Remains a Strong Long-Term Buy

Uber has shifted from survival mode to consistent profitable growth. Q2 2025 earnings highlight substantial expansion across segments, driven by increased user numbers and trips, which is fuelling momentum. The rising cash flow and aggressive share buybacks signal that management sees lasting value.

The company is also building future growth drivers. The partnerships with retailers, grocers, and beauty brands diversify revenue. Moreover, investments in autonomous and drone delivery strengthen efficiency and open new markets. These steps position Uber as more than just a ride-hailing company.

From a technical perspective, Uber’s stock has built a strong bullish trend over the past few years. The emergence of an inverted head-and-shoulders pattern signals a solid base formation. Therefore, any correction in the stock price can be viewed as a strong buying opportunity. Investors may consider entering around the $90–$92 level and adding more positions if the price dips toward the $80–$85 range.