Uber stock price has held steady near its all-time high as investors predict that it will not be affected by Donald Trump’s Liberation Day tariff. It was trading at $72.75, down by 16% from its highest point in 2024. So, is Uber a good stock to buy?
Uber to be unaffected by Trump’s tariffs
The biggest theme in the stock market this year has been activities by Donald Trump. Last week, the president announced that he would apply a 25% tariff on all imported vehicles to the United States. This announcement means that auto prices in the US are set to keep rising.
Trump has also declared April 2 to be his Liberation Day, when he applies reciprocal tariffs on goods from other countries. These tariffs will likely lead to more retaliation from other countries, including China and the European Union.
Many companies will be affected by these issues. The firms most at risk are automakers like Stellantis, General Motors, and Porsche.
Additionally, American tech companies like Apple and NVIDIA may be at risk because of retaliation from other countries.
Uber, a company that offers ride-hailing and deliveries will likely not be affected. In theory, the company’s business should even benefit as auto prices jump in response to the tariffs.
Higher vehicle prices mean that many people may decide to use ride-hailing instead. It also means that Uber may decide to hike prices to take advantage of this trend.
Additionally, Uber has a presence in many countries globally, meaning that its business will be less affected. Most importantly, it generates most of its revenue in the US and Canada, with the rest coming from the EMEA region.
In the US, Uber’s main competition comes from Lyft, a company that has struggled to gain market share over the years.
Uber’s business is doing well
Uber stock price has done well as its business continues to do well. A likely future catalyst is the growth of autonomous vehicles. While these vehicles are not very popular in the US, some Chinese companies like Horizon and Pony AI are leading the way.
This means that the era of autonomous vehicles is nearing. Uber will take advantage of this trend by launching autonomous vehicles, and taking most of the cash. Today, the company shares most of its revenue with the drivers.
The most recent numbers showed that Uber’s gross bookings jumped by 18% YoY in the fourth quarter to $44.2 billion. This growth was mostly driven by a big increase across its mobility and delivery business.
Uber’s revenue rose by 20% in Q4 to $12 billion, while its adjusted EBITDA rose by 44% to $1.8 billion.
Analysts are optimistic that Uber’s business will continue doing well this year. The average estimate is that its revenue will rise by 14.5% to $11.6 billion, leading to an annual revenue figure of $50.3 billion. Its revenue will get to $57.65 billion in 2026.
Uber stock price technical analysis
The weekly chart shows that the Uber share price has held steady in the past few months. It has remained above the ascending trendline that connects the lowest swing in December 2022.
Uber shares have remained above the 50-week and 100-week Exponential Moving Averages (EMA). It has also formed an ascending triangle pattern, with the two lines are about to converge.
Therefore, the Uber stock price will likely have a strong bullish breakout in the coming weeks. This bullish outlook will be confirmed if it rallies above the key resistance level at $81.85. A move above that level will point to more gains to $86.85, the highest swing on October 7. Rising above that level will signal more gainst to $100.
Read more: Uber stock: could it surpass $100 in 2025?
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