Uber stock has dropped 8% this year over concerns that the ride-hailing company faces stiff competition from robotaxi operators, most notably Waymo. Sellers are overreacting. Uber can still sustain rapid growth and expand its profit margins while staying competitive in the autonomous-driving race in the years to come. Plus, its current valuation, which is the lowest since it started to make a profit in 2023, gives little credit to its rapidly expanding food-delivery business, rising operating margin and loads of free cash flow. At its current level, Uber trades at 2.6 times its next year’s revenue, versus 4 times for an average of companies in the S&P 500. This steep discount makes no sense.
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