Uber traders shrug off robotaxi risks as stock powers to record
Uber shares have rallied 60% to a record this year as partnerships with robotaxi startups like Alphabet Inc.'s Waymo and growth in new markets have given bulls reasons to cheer after the stock underperformed in 2024. The advance has made Uber the seventh-best S&P 500 performer in 2025.
'They've done a great job expanding their addressable markets by adding things like grocery, convenience, alcohol,' said Jamie Meyers, senior equities analyst at Laffer Tengler Investments Inc.
Such moves, however, haven't fully assuaged concerns about long-term risks from robotaxi services like Waymo, which is operating independently in three cities — San Francisco, Phoenix and Los Angeles — and in partnership with Uber in Austin and Atlanta. Tesla Inc. is going it alone and began testing a similar offering in Austin last month.
Reports on Waymo and Tesla's robotaxi plans have triggered selloffs in shares of Uber and smaller rival Lyft Inc. in recent months.
'There's this view that's somewhat percolated across the investor base that regardless of what the competition looks like, they own the relationship with the consumer in terms of mobility,' said Matt Stucky, Northwestern Mutual Wealth Management's chief portfolio manager of equities. 'I would question that quite a bit just in terms of the path forward for the company.'
Uber didn't respond to a request for comment.
The San Francisco-based firm has for years been investing into new areas across its core ride-hailing and delivery businesses in the US and abroad, helping fuel revenue growth that's expected to be 15% in 2025. It has also entered into more than a dozen partnerships with car manufacturers and technology developers around the world.
David Wagner, portfolio manager at Aptus Capital Advisors, likes Uber's strategy of partnering with self-driving rivals and remains bullish, though he doesn't expect the stock to push much higher in the near term with few catalysts on the horizon.
'The market finally started to recognize that we'd rather take kind of this aggregator approach and reward that company,' he said.
Roughly three quarters of analysts tracked by Bloomberg that cover Uber have buy-equivalent ratings and the remainder are neutral. But the run-up in shares has the stock trading roughly in line with the average price target at about $98.
Canaccord analyst George Gianarikas acknowledges that Uber's strategy of embracing a variety of self-driving services may well prove to be successful, but sees the risks as too great to ignore.
'An alternative scenario is also plausible: a new world dominated by a few AV behemoths that control the value chain,' he wrote in a research note late last month. 'We remain flexible and are open to either outcome, but given the uncertainty and potential for rapid disruption, see neutral as the appropriate near-term rating.'
Reinicke writes for Bloomberg.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Post
28 minutes ago
- New York Post
Several Amazon sellers skip offering Prime Day discounts as Trump tariffs slam costs: report
Amazon sellers are offering fewer discounts during this week's annual Prime Day sales event, saying their margins are too tight as they battle high costs from President Trump's tariffs, according to a report. The online sellers pulling back on deals account for approximately 60% of the products sold on Amazon, according to a Bloomberg, as the four-day sales bonanza kicked off Tuesday. Dan Peskorske, whose Upstream Brands sells aluminum trays that make decorative ice cubes for cocktails, typically sells his products at cost on Prime Day to boost sales. 4 Some Amazon merchants are offering fewer discounts during this week's annual Prime Day sales event. AP But he told Bloomberg his company is unable to offer any discounts this year for the first time because of the 50% tariff on aluminum. 'We're just gonna see what happens this year,' said Peskorske, whose St. Louis-based company generates about $4 million in annual sales, most of that from Amazon. 'There's just no room in the budget for Prime Day discounts.' Unilever Plc's Blueair typically offers discounts of about 30% on its air purifiers and humidifiers during Prime Day to promote the brand. But it's been forced to reduce the number of products on sale this year due to tariffs, according to CEO Andy Lu. 'We want to be cautious to see how this economy plays out for the rest of the year,' Lu told Bloomberg. 'This Prime Day has so much meaning as an indicator for brand owners and operators.' 4 President Trump speaks during an Invest America Roundtable event in June. REUTERS An Amazon spokesperson said the company is seeing a strong response from selling partners for this year's Prime Day event. 'We're working with our broad, varied range of valued selling partners in our store to support them in adapting to the developing environment while maintaining low prices and broad selection for customers,' an Amazon spokesperson told The Post. The sales event, which was extended for an additional two days this year, is expected to generate $23.8 billion in online sales for Amazon and other US retailers, according to Adobe Inc. It's unclear how the longer sales period will impact Amazon's Prime Day event. 'You don't have that sense of urgency that Prime Day seemed to be built around,' Katie Thomas, head of the Kearney Consumer Institute, told Bloomberg. 'The longer sales period might lead to cart abandonment.' The Prime Days will also offer a litmus test on the health of US consumers. About 25% of respondents in a survey of 1,000 US shoppers said they plan to skip the event altogether due to tariffs, while more than half said they will be closely monitoring prices, according to Akeneo, which sells software used by online merchants. 4 About 25% of respondents on a survey of 1,000 US shoppers said they plan to skip Prime Day altogether due to tariffs. AP 'Prime Day will provide an early indication on consumer appetite, especially in categories like apparel, electronics and TVs, where price drops are expected to be the deepest,' Vivek Pandya, lead analyst at Adobe, told Bloomberg. Trump unveiled hefty 'Liberation Day' tariffs on most trading partners in April, before pausing them for 90 days. On Monday, he extended the pause until Aug. 1. Retail sales have started to fall following massive front-loading as customers snapped up goods ahead of the tariffs – like a surge in car sales before Trump's 25% levy on foreign vehicles took effect. Amazon also is facing increased competition from other large retailers, like Walmart's six-day Deals event, which also started Tuesday, and Target's Circle Week that launched Sunday. Dick's Sporting Goods and Best Buy have also ramped up their summer sales offerings. Though smaller merchants are struggling to offer discounts this year, these massive e-commerce events are still expected to see a rush of sales. 4 US shoppers will spend nearly $13 billion on Amazon alone over the four-day period, according to EMarketer Inc. AP Online sales from July 8 to July 11 are expected to surge 28.4% compared with the same period last year, according to Adobe. US shoppers will spend nearly $13 billion on Amazon alone over the four-day period, up 59% from last year when Prime Day lasted just two days, according to EMarketer Inc. Tariffs, which are expected to drive up prices this summer, have pushed some shoppers to start their back-to-school purchases before August, which is especially early in the season, according to Coresight Research. 'It's the big hurrah before fall sets in and the tariff prices start kicking in,' Matt Pavich, the senior director of strategy and innovation at Revionics, a retail price-optimization company, told the New York Times.
Business Wire
an hour ago
- Business Wire
FHLB Dallas and Origin Bank Celebrate Awarding $2M in Affordable Housing Program Funds to Support The Wellspring's Holly Haven
MONROE, La.--(BUSINESS WIRE)--A new campus slated to open early 2027 to assist families experiencing homelessness in Monroe, Louisiana, received much needed support in the form of a $2 million Affordable Housing Program (AHP) grant from the Federal Home Loan Bank of Dallas (FHLB Dallas), awarded through member Origin Bank. The banks celebrated awarding the funds to The Wellspring Alliance for Families Inc. (The Wellspring) during a ceremonial check presentation today. The AHP grant will support the development of Holly Haven, a private-living housing campus designed to serve unsheltered families and individuals, including those escaping domestic violence. 'This grant is crucial to the construction of a facility with private living spaces where families and individuals escaping trauma can find not just safety but also privacy and dignity,' said The Wellspring's President and CEO Caroline Cascio. 'Holly Haven will launch a new era of service delivery for The Wellspring and we are grateful to FHLB Dallas and Origin Bank for their support of this development, which will create a pathway to stability and self-sufficiency for families in Northeast Louisiana.' The Holly Haven campus will house two private-living facilities, one on the north side and the other on the south side of Holly Street in Monroe. Together, the two facilities will offer 28 units, some of which will adjoin to accommodate larger families. Both facilities will be equipped to meet the basic needs of those in residence and will be adjacent to service sites, including case management, safety planning and support groups for adults and children. 'We're proud to support The Wellspring and the creation of a facility that will offer both adults and children in our community a safe haven during trying times of their lives,' said Origin Bank's Senior Vice President, Commercial Relationship Manager Rick Guillot. 'This project aligns with Origin's purpose of enriching the lives of people in our community.' AHP funds are awarded through FHLB Dallas member institutions and assist FHLB Dallas members in financing the purchase, construction and rehabilitation of owner-occupied, rental or transitional housing and housing for homeless individuals. The funds must be used to benefit households with incomes at or below 80 percent of the median income for the area. 'Whether in bustling urban centers or underserved rural communities, everyone deserves a place to feel secure and supported,' said Greg Hettrick, senior vice president and director of Community Investment at FHLB Dallas. 'We're proud to fund a project that will offer families in this community a vital lifeline, close to home, during times of crisis.' In 2024, FHLB Dallas awarded $21.7 million in AHP General Fund grants to Louisiana-based affordable housing projects. The grants will help create 684 new or rehabilitated housing units. FHLB Dallas will announce 2025 grant awardees this fall. Learn more about the FHLB Dallas Affordable Housing Program. About Origin Bank Deeply rooted in Origin's history is a culture committed to providing personalized, relationship banking to businesses, municipalities and personal clients to enrich the lives of the people in the communities it serves. Origin offers a broad range of financial services and currently operates more than 55 banking centers located throughout Texas, Louisiana, Mississippi, Alabama and Florida. About the Federal Home Loan Bank of Dallas The Federal Home Loan Bank of Dallas is one of 11 district banks in the FHLBank System created by Congress in 1932. FHLB Dallas, with total assets of $109.9 billion as of March 31, 2025, is a member-owned cooperative that supports housing and community development by providing competitively priced loans and other credit products to approximately 800 members and associated institutions in Arkansas, Louisiana, Mississippi, New Mexico and Texas. For more information, visit
Hamilton Spectator
an hour ago
- Hamilton Spectator
S&P/TSX composite finishes over 100 points lower, U.S. markets mixed
TORONTO - Canada's main stock index fell more than 100 points to cap off Tuesday's trading session, weighed down by losses in the basic materials sector, while U.S. stock markets were mixed. The S&P/TSX composite index was down 116.71 points at 26,903.57. In New York, the Dow Jones industrial average was down 165.60 points at 44,240.76. The S&P 500 index was down 4.46 points at 6,225.52, while the Nasdaq composite was up 5.95 points at 20,418.46. The Canadian dollar traded for 73.12 cents US compared with 73.23 cents US on Monday. The August crude oil contract was up 40 cents US at US$68.33 per barrel. The August gold contract was down US$25.90 at US$3,316.90 an ounce. This report by The Canadian Press was first published July 8, 2025. Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
