Is Uber Technologies stock worse than the Nasdaq?

Uber Technologies, Inc. (UBER), based in San Francisco, California, provides a platform that allows users to access transportation and food ordering services. With a market capitalization of $153.9 billion, Uber operates the world’s largest mobility platform and operates in approximately 70 countries and over 10,000 cities around the world.

Companies valued at $10 billion or more are generally referred to as “large-cap stocks,” and Uber Technologies fits that bill perfectly. Given its dominance in the software applications space, the valuation above this mark is not surprising. The company recently committed to becoming an all-electric, zero-emission platform by 2040, with 100% of trips taking place in zero-emission vehicles, public transit or micromobility, demonstrating its aggressive stance in the fight against climate change.

However, the stock has fallen more than 16% since its all-time high of $87 reached on October 11th. Additionally, Uber’s share prices saw a modest decline over the past three months, lagging behind the Nasdaq Composite’s (NASX) gains of 9.5% over the same period.

Uber Technologies has also underperformed the Nasdaq over the longer term. Uber shares have gained 18.7% year-to-date and 27.4% over the past 52 weeks, compared to the NASX’s rise of 29.3% in 2024 and 35.6% last year.

UBER has been trading below its 50-day moving average since early November. Since mid-November, the price has largely traded below its 200-day moving average.

Share prices of Uber Technologies plunged 9.3% following the release of third-quarter results on October 31, as the company’s gross bookings of $41 billion fell short of Street expectations of 41.3% billion US dollars. However, the company’s overall performance remained more than impressive as the company saw massive improvement in profitability and revenue growth. Revenue rose an incredible 20.4% year over year to $11.2 billion, beating analysts’ expectations. Additionally, the company reported an even more impressive year-over-year adjusted EBITDA growth of 54.8% to a total of $1.7 billion, and its EPS of $1.20 beat consensus estimates by a massive 192.7%.

Uber Technologies lagged rival Grab Holdings Limited (GRAB), which posted a 53.7% year-to-date gain and a 68.7% return over the past 52 weeks.

Still, the company receives a Strong Buy consensus from the 44 analysts covering the stock. UBER’s average price target of $91.76 represents a whopping 25.6% premium to current price levels.

At the time of publication, Aditya Sarawgi did not hold (either directly or indirectly) any positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please see Barchart’s disclosure policy here. More news from Barchart

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.