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Investing.com - Citizens JMP maintained its Market Perform rating on Uber Inc. (NYSE:UBER) on Monday. The ride-hailing giant, currently trading at $83.78 with a market cap of $175.2 billion, has demonstrated strong momentum with a 35% surge over the past six months. According to InvestingPro data, the company maintains a "GREAT" overall financial health score.
The research firm noted recent data showing significant growth slowdown in San Francisco, with mileage growth lagging behind supply growth, indicating deteriorating quarter-over-quarter utilization of Waymo vehicles.
Despite these utilization challenges, Citizens JMP estimates Waymo One currently maintains positive unit-level gross profit margins of approximately 18%.
The firm expects Waymo to continue launching its Waymo One service in new markets independently rather than partnering with Uber, citing the significant value of maintaining direct-to-consumer relationships that have previously enabled Uber to expand into adjacencies like Uber Eats and advertising.
Citizens JMP believes Waymo maintains substantial access to fundraising opportunities due to its leadership position in autonomous vehicles and the massive U.S. consumer transportation market that exceeds $1 trillion annually.
In other recent news, Uber Technologies Inc . announced the expansion of its AI data services business, Uber AI Solutions, to 30 countries. This expansion provides a platform for AI labs and enterprises worldwide, offering services such as annotation, translation, and content editing. Uber is also launching a new data foundry for training large AI models, supporting applications like generative AI and speech recognition. Meanwhile, Citizens JMP maintained a Market Perform rating on Uber, highlighting the company’s anticipated autonomous vehicle partnership with Wayve, expected to commence in London by 2026. This partnership is part of Uber’s broader strategy to enhance its self-driving technology initiatives in Europe. Additionally, Uber filed a lawsuit against a Miami law firm and a medical center, accusing them of orchestrating a scam involving staged car accidents. The lawsuit alleges that the scheme involved paying drivers to intentionally cause collisions and make fraudulent insurance claims. Moreover, Uber is partnering with Coco Robotics, a startup that recently raised $80 million in funding, to advance urban delivery solutions using robots. Coco Robotics collaborates with Uber Eats and uses OpenAI’s technology to enhance its delivery operations.
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