Uber: Growth Is Priced At Half Of The Real Number

Krzysztof Bogdanski 74 Followers Follow Summary I rate Uber Technologies a buy with a $130 fair value, emphasizing gross bookings and margin over reported revenue due to UK accounting distortions. UBER's non-GAAP operating income grew 40% and bookings rose 22%, while advertising and Uber One memberships drive high-margin growth and platform engagement. The $13.7B Delivery Hero acquisition expands Uber's TAM to 99 markets, with management targeting $1.2B+ in synergies and high-single-digit accretion by year three. Key risks include regulatory reclassification, Delivery Hero integration execution, and competitive pressures, but margin expansion and strong free cash flow underpin my bullish stance. Getty Images I rate Uber Technologies, Inc. ( UBER ) a buy with a fair value of roughly $130 per share against the current $76.83, based on a DCF model on gross bookings and margin on bookings rather than revenue. My core argument is This article was written by Krzysztof Bogdanski 74 Followers Follow I am an individual investor with a long-term focus on identifying high-quality businesses. Having most of my past investments appreciating aggressively, I tend to sell them when they are deemed to have run too far. My primary areas of interest include: technology, financial services, software, and businesses benefiting from durable competitive advantages and secular growth trends. While I closely follow macroeconomic developments and capital markets, my investment decisions are driven primarily by company fundamentals, management quality, competitive positioning, capital allocation, and long-term earnings potential rather than short-term market movements. I recently graduated from IB World School 002709 with 38 points. Beginning this autumn, I plan to pursue a Bachelor's degree in Finance and Accounting at SGH Warsaw School of Economics. As soon as I become eligible, I intend to enroll in the CFA Program to further strengthen my understanding of financial markets. Although I am at the beginning of my professional journey and do not yet have institutional investing experience, I have been actively investing for 2 years and have developed a research-driven investment process. Since March 2024, my family portfolio has generated a return of approximately 160% through investments in U.S. equities. While I recognize that past performance over a relatively short period does not guarantee future results, I am keen to now take it much more seriously (with more time to both deepen my knowledge and perform analyses). Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.