Should I buy Uber stock in 2025? A South African Perspective

What is Uber?

How much is the Uber stock?

The price of Uber stock is falling this week. As of now, Uber's share price is $84.30, reflecting a decline of $3.96 (down 4.49%) over the past 24 hours and a weekly change of -4.20%. The company's market capitalisation stands at $184.57 billion, with an average daily volume of 20.75 million shares traded over the past three months. Uber currently holds a price-to-earnings (P/E) ratio between 14.7 and 15.5, does not pay a dividend, and exhibits a beta of 1.43, indicating elevated volatility.

With recent moves in the sector and a strong local appetite for global tech stocks, Uber may offer both challenges and opportunities for ZA investors as market trends unfold.

Our complete analysis of the Uber stock

Having thoroughly reviewed Uber Technologies Inc.’s latest financial results alongside its stock performance over the past three years, our analysis utilises a robust combination of financial indicators, technical signals, sectoral market data, and competitive intelligence, all synthesised using proprietary algorithms. This comprehensive methodology aims to distil the most timely, actionable insights for investors looking at the technology and mobility sector in 2025. So, why might Uber stock once again become a strategic entry point into global transport innovation?

Recent Performance and Market Context

Uber's share price recently closed at $84.30 on 29 May 2025 following an intraday dip of 4.49%, mainly in reaction to competitor announcements in autonomous vehicles, most notably from Tesla. Despite this short-term volatility, the stock’s medium- and long-term price trends remain broadly constructive:

• 6-month performance: +17.15%
• 1-year return: +29.83%
• Year-to-date (YTD): +39.75%
• 52-week range: $54.84 – $93.60

The slight weekly pullback (–4.20%) stands out more as a healthy technical cooling in a market segment propelled by digital transformation, sustained demand for platform services, and a growing appetite for mobility solutions. Globally, the gig economy’s resilience, coupled with broader acceptance of platform-based services, has created a fertile macroeconomic context: demand for mobility and delivery services remains robust, underpinned by urbanisation trends and shifting consumer behaviour in major markets across North America, Europe, and key emerging regions.

Recent quarters have also revealed Uber’s ability to weather both competitive jolts and regulatory pressure. Notably, the drop on Tesla robotaxi news offers long-term investors an opportunity to revisit Uber at a technically attractive juncture, especially given how the company’s fundamentals continue to fortify.

Technical Analysis

Technically, Uber is positioned in a robust uptrend with mild, constructive corrections. The key technical insights are:

• 14-Day RSI: 58.70 (neutral)—neither oversold nor overbought, giving room for future upside without being technically stretched.
• MACD: Ranges from slightly negative (–0.85, ChartMill) to notably positive (+3.10, TipRanks)—illustrating transient consolidation within a multi-month uptrend.
• Strategic Support: $82.96, last session’s low and a strong area of prior volume congregation, indicating robust demand at this level.
• Short-term Resistance: $93.60 (52-week high)—a logical upside objective should the price reclaim lost ground.
• Moving averages (not explicitly stated, but implied): Recent price action near support, within a trend channel, and persistent positive momentum underpin a bias towards upward resumption.

The current configuration suggests Uber is consolidating above vital support and may be poised for the next upwards leg, especially as technical selling pressure abates and fundamental drivers reassert themselves. For short- and medium-term investors, such technical structure often signals advantageous entry points.

Fundamental Analysis

Uber’s latest financials from Q1 2025 underscore a compelling turnaround story:

• Revenue: $11.53 billion (+14% year over year), demonstrating consistent double-digit top-line growth even as the global economy normalises post-pandemic.
• Adjusted EBITDA: $1.9 billion (+35% YoY), highlighting strong scalability and effective cost control.
• Net profit: $1.78 billion, up sharply from a net loss of $654 million a year earlier—a signal of durable profitability after years of reinvestment.
• EPS (Q1 2025): $0.83 vs $0.50 expected—substantial earnings outperformance, a key driver of medium-term re-rating potential.
• Free cash flow: $2.25 billion in Q1, up 66% YoY, providing enhanced flexibility for future innovation, buybacks, or strategic partnerships.

Looking at valuation metrics:

• Price/Earnings (P/E): 14.70–15.47—a significant discount versus high-growth technology peers and well below peak multiples from the IPO era.
• Market cap: $184.57 billion, supporting inclusion on major indices and ensuring optimum liquidity.
• Analyst consensus price target: $95.95, with some advanced models suggesting upside to $109.59 (+30% from current levels).

Strategically, Uber benefits from:

• A global, integrated ecosystem spanning Mobility, Delivery (Uber Eats), and Freight, giving it a unique hedge against segment-specific downturns.
• Technological advances: ongoing investments in autonomous vehicles, artificial intelligence, and data-driven optimisation.
• Brand leadership: deep user penetration, multi-platform stickiness, and a muscular presence in key urban and suburban markets globally.

Such structural strengths, combined with a market-matching or cheaper valuation for its earnings trajectory, justify renewed institutional and retail interest.

Volume and Liquidity

Uber’s trading volume remains substantial, with an average of 20.75 million shares changing hands daily over the past three months. This level of liquidity confers several investment advantages:

• Tight bid-ask spreads, enabling efficient trade execution for market participants of all sizes—including large institutional investors typical in the South African financial market.
• Dynamic price discovery: ensures new catalysts—technological innovations, regulatory news, or macro data—are rapidly reflected in the price.
• Robust float: Uber’s large, diversified shareholder base helps dampen volatility, mitigating the risk of sharp drawdowns typical in lower-float tech stocks.

Such liquidity breeds confidence: institutional flows can move in and out without excessive slippage, supporting the case for Uber as a core holding in global technology or mobility baskets.

Catalysts and Positive Outlook

Multiple catalysts reinforce the bullish narrative for Uber entering 2025 and beyond:

• Autonomous Vehicles and Robotaxis: Uber’s intense focus on autonomous vehicle (AV) partnerships—five new deals recently, and strategic tie-ups with Waymo and others—positions it as a frontrunner in the race toward self-driving mobility. Hundreds of robotaxis are slated for deployment in Atlanta and Austin this year, targeting operational scale before competitors achieve market saturation.
• Profitable Growth: Uber’s Q1 saw adjusted EBITDA margins rise to 4.4% (up from 3.7%). Anticipated Q2 guidance is even stronger, with projected bookings up 16–20% year over year and EBITDA surging toward $2.12 billion.
• Free cash flow strength: The business generated $2.25 billion FCF in Q1 (+66% YoY), providing war chest flexibility for M&A, R&D, or new international ventures.
• Sustainability and ESG Initiatives: Uber is embedding ESG thinking into its fleet management and last-mile operations, increasingly appealing to environmentally conscious investors.
• Resilience despite competition: The recent Tesla robotaxi news spooked markets, but Uber’s platform-first approach, massive urban data reserves, and experience scaling both mobility and logistics, should act as insulators should competition intensify.
• Broader sector momentum: As tech sector sentiment has rebounded strongly in 2024–2025, Uber’s inclusion in high-growth, innovation-weighted indices attracts steady passive flows.

These drivers combine to suggest Uber is entering a phase where margin expansion and new revenue streams could deliver sustained profit growth, capturing investor attention ahead of major platform shifts in the transport and delivery sectors.

Investment Strategies

Uber’s current positioning encourages differentiated entry strategies for various investment timeframes:

• Short-term (1–3 months): Recent share price retracement has brought the stock back to a firm technical support area ($82.96–$84.30). For momentum traders, a bounce from current levels is supported by constructive RSI and MACD readings, implying short-term mean reversion potential towards resistance at $93.60.
• Medium-term (3–12 months): Investors looking to benefit from Q2/Q3 catalyst events—including robotaxi launches, potential regulatory clarity, and further earnings upgrades—may see this period as an opportune window. The consensus target of $95.95 is within reach if current margin expansion and revenue growth persist.
• Long-term (1–3 years): For holders with a longer horizon, Uber offers exposure to structural themes—autonomous mobility, platformisation, and global urbanisation—at a reasonable current earnings multiple. Free cash flow generation and scale efficiencies point to continued compounding power, potentially outperforming sector benchmarks.

An ideal tactical entry may be at or just above current support, or ahead of the Q2 earnings report and major robotaxi rollouts, capturing pre-catalyst upside.

Is it the Right Time to Buy Uber?

In summary, Uber Technologies Inc. presents an extremely attractive confluence of factors as of mid-2025:

• Demonstrated profitability after years of consolidation, with net margins, cash flow, and adjusted EBITDA all rising at double-digit rates.
• Positive technical structure, as the stock consolidates in an area of strong historical demand, with momentum indicators suggesting room for further appreciation.
• Considerably improved business fundamentals—robust revenue growth, operational scale, and strategic leadership across multiple next-generation transport modalities.
• High liquidity and dynamic float, ensuring institutional confidence and efficient participation for global investors.
• Impressive set of near-term and long-term catalysts—robotaxi expansion, successful AV rollout, and sector tailwinds—backstopping future re-rating potential.

Given the above, Uber stock seems to represent an excellent opportunity for investors seeking diversified exposure to the innovation-led mobility sector. While competitive and regulatory risks should naturally be monitored, the fundamentals justify renewed interest as Uber transitions from disruptor to a mature, cash-generative technology leader.

In this context, Uber offers serious investors in South Africa and globally a compelling proposition at the intersection of technology, urban mobility, and scalable business execution—the kind of opportunity that could define the next phase of growth in the digital platform economy.

How to buy Uber stock in ZA?

Buying Uber stock from South Africa is now simple and secure with online brokers regulated by global and local authorities. You have two main ways to invest: buying actual Uber shares (spot buying) or trading Uber CFDs, which allow you to speculate on price movements without owning the shares. Each option suits a different investment style—long-term holding or active trading with leverage. To choose the best solution for your needs, it’s important to compare brokers’ fees and features. You’ll find a detailed broker comparison further down the page.

Spot buying

A cash or spot purchase means you buy real Uber shares on the US market, becoming a part-owner of the company. You pay the full price upfront and can hold your shares for as long as you like, benefiting directly from any rise in Uber’s share price. Typical fees for South African investors are a fixed commission per order (often around R100-R150) or a flat fee of about $5, plus a small currency conversion cost.

Important example

Example:
If Uber’s share price is $84.30 (about R1,550), with $1,000 (approx. R18,300) you can buy about 11 shares, after allowing for a $5 brokerage fee.
Gain scenario:
If Uber’s share price increases by 10%, your 11 shares would be worth $1,100.
Result: +$100 gross gain, or +10% on your initial investment.

Trading via CFD

CFDs (Contracts For Difference) allow you to trade Uber’s price movements without owning the underlying shares. With CFDs, you can use leverage—amplifying your exposure to the price movement with a smaller upfront deposit. Broker fees consist of the spread (difference between buy/sell prices) and overnight financing costs if you hold a position open for more than a day.

Important example

Example:
You open a CFD position on Uber with $1,000 and 5x leverage, giving you $5,000 of market exposure.
Gain scenario:
If the Uber share price rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain (excluding fees), on a $1,000 deposit.

Final advice

Before investing, always compare brokers’ fee structures and conditions—this can make a meaningful difference to your returns, especially over time. Whether you choose direct share ownership for long-term growth, or CFD trading for amplified, short-term moves, depends on your objectives and risk appetite. The best broker for you also depends on execution speed, educational tools, and platform features. To help with this choice, a comparison of leading brokers is available just below.

Our 7 tips for buying Uber stock

The latest news about Uber

Uber demonstrated robust Q1 2025 results with a 14% year-on-year revenue increase and significant margin improvement. The company’s adjusted EBITDA margin rose to 4.4% from 3.7% the prior year, and net profit reached $1.78 billion, reversing a loss in Q1 2024. With free cash flow climbing to $2.25 billion, up 66% year-on-year, Uber’s operational efficiency and profitability are strengthening markedly. These positive financial signals reflect not just core business momentum but also benefit from growing ride and delivery demand – a trend mirrored in Uber’s South African operations, where urban mobility and food delivery services see steady adoption in major cities.

Uber has announced five new autonomous vehicle partnerships this week, advancing its global mobility leadership. The CEO confirmed these partnerships are a core part of ongoing platform diversification, including continued collaboration with technology leaders such as Waymo. This signals sustained investment in AI and automation – areas particularly relevant to South African analysts, given local innovation hubs and government interest in smart city solutions. The potential downstream effects may include more efficient deployments and tech-driven cost reductions in emerging markets, eventually improving regional service reliability and scalability.

Despite recent share price volatility, consensus analyst targets remain strongly bullish at nearly 14% above current price. While Uber’s stock dropped by 4.49% last week in reaction to Tesla announcing its autonomous robotaxi service in the US, the medium-term outlook remains constructive; analysts’ consensus target stands at $95.95 (from $84.30 currently), with some projecting upside toward $109.59. In the South African context, where investors often look for exposure to disruptive technology and high-growth US equities, this strong conviction underlines continued institutional confidence in Uber’s scalable business model and innovation roadmap.

Uber’s local and regional presence continues to deepen, supporting user growth and platform relevance in Southern Africa. As of 2025, Uber has maintained its operational expansion in South Africa, with its ride-hailing and food delivery services present in all major cities like Johannesburg, Cape Town, and Durban. Recent public statements reaffirm Uber’s commitment to engaging with local partners and regulators, improving driver-partner opportunities, and exploring new logistics solutions. These factors support brand trust and potentially enhance regional revenue streams, which is meaningful for the forecasted mobility and delivery growth in the Southern African market.

Strategic focus on autonomous vehicles and mobility innovation aligns with smart mobility priorities in South Africa. Uber’s roadmap, combining key partnerships in autonomous vehicles with platform integration across rides, deliveries, and freight, positions the company at the forefront of next-generation transport solutions. This is particularly relevant in South Africa, where government and private sector initiatives are advancing urban mobility, smart logistics, and digital transformation. As Uber scales its technology globally, product and knowledge transfer to African markets could accelerate, offering both immediate and long-term positive tailwinds for the stock and its local operational environment.

FAQ

Nishadh Mohammed

Nishadh Mohammed is a seasoned news editor and financial writer, working with HelloSafe since May 2023. Nishadh has developed expertise in financial markets, insurance, and investment products, with a deep understanding of the Canadian financial landscape. He has honed his SEO skills and content marketing strategies while writing for Canadian publishing houses. Armed with a master's in Business Analytics and extensive journalistic experience, Nishadh uniquely combines data proficiency and thorough research to deliver comprehensive and accessible information.