1 Glorious Growth Stock to Buy Hand Over Fist Before 2025, According to Wall Street

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Uber Technologies (NYSE: UBER) operates the world’s largest ride-hailing platform, but it’s also home to its food delivery service, and the Uber Freight commercial logistics network.

Uber’s stock price is currently down 8% from its all-time high, which was set just last month, and Donald Trump’s recent election victory might be a key reason. However, that could turn into the biggest financial opportunity in the company’s history.

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I think the recent dip might be a buying opportunity. The overwhelming majority of the analysts tracked by The Wall Street Journal appear to agree. They have assigned the stock the highest-possible buy rating, and none recommends selling. Here’s why investors might want to buy a slice of Uber ahead of the new year.

During the third quarter of 2024 (ended Sept. 30), Uber had a record 161 million customers using its platform every month. They completed over 2.8 billion trips during the quarter, resulting in $40.9 billion in gross bookings.

A gross booking is the total amount of money a customer spends on the Uber app. For a ride-share, it includes the driver’s earnings, and for a food delivery order, it includes the cost of the food, even though Uber doesn’t keep that money.

Once those costs are taken out, Uber is left with a revenue figure. This was $11.2 billion during the third quarter, which was a 20% increase from the year-ago period.

However, the mobility industry is about to undergo a major shift on the back of autonomous technologies. Uber already offers driverless ride-sharing and food delivery on its platform to a limited extent, but their availability is only going to grow.

Uber drivers across all segments earned a collective $18 billion during the third quarter alone. That number is included in the $40.9 billion in gross bookings, and it’s the company’s largest cost by far.

If autonomous vehicles eliminate that cost entirely, Uber will keep a significantly higher portion of every ride, so this shift has the potential to completely transform the company’s economics.

Image source: Getty Images.

All three of these are intertwined. The Trump administration is probably going to approach the corporate sector with a relatively light regulatory touch, and reports are swirling that it will fast-track self-driving technologies. Tesla CEO Elon Musk was one of the Trump campaign’s biggest supporters, and the company plans to build its own ride-hailing network for its autonomous vehicles.

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