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On Friday, RBC Capital provided insights on several companies, including UBER, LYFT, WIX, ZG, and RDFN. The firm’s analyst Brad Erickson highlighted that Tesla (NASDAQ:TSLA)’s move towards robotaxi services in California reflects positively on UBER’s competitive stance. According to InvestingPro data, UBER, now valued at $156.59 billion, maintains its position as a prominent player in the Ground Transportation industry, with impressive revenue growth of nearly 18% over the last twelve months. The analyst noted that the market is increasingly viewing UBER favorably as Tesla’s timeline to enter the autonomous vehicle (AV) market may not meet expectations, with launches in Austin, Texas by June or California by the end of the year or early next year. Erickson mentioned potential brand erosion for Tesla and recent job cuts to NHTSA as factors that could indirectly benefit UBER. Following UBER’s Q4 earnings, there was short covering, and the analyst anticipates interest to see if short sellers will become more aggressive depending on Tesla’s progress towards its Austin launch. Additionally, the collaboration between UBER and Waymo is expected to arrive in Atlanta later in the year, raising questions about the potential competition from Tesla, especially if it competes on price and driver compensation to gain market traction. InvestingPro analysis suggests UBER’s financial health is rated as GREAT, though net income is expected to decline this year. For deeper insights into UBER’s competitive position and financial outlook, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, covering over 1,400 top US stocks.
In the web design space, Erickson discussed WIX’s position at an investor conference. There has been debate over WIX’s pricing power following its earnings report, with bulls confident in the company’s growth prospects and bears skeptical about reliance on pricing. WIX management emphasized growth driven by product mix rather than solely on price increases, arguing that net subscriber additions are no longer a good measure of bookings growth. RBC remains positive on WIX, seeing it as a two-product cycle story through 2026 that could lead to mix-driven growth, potential further price-taking, and improved free cash flow margins and capital returns.
Regarding the real estate market, Erickson commented on ZG and RDFN in light of a 6% drop in pending home sales but noted that falling mortgage rates are starting to attract buyers. The analyst believes that ZG is likely to mirror the market trends in California, while RDFN might outperform slightly. With UBER’s stock currently trading near analysts’ consensus targets and showing strong momentum, investors seeking detailed valuation metrics and growth forecasts can explore the full suite of financial tools available on InvestingPro. Erickson pointed out that slight decreases in mortgage rates have historically spurred demand from first-time buyers quickly, benefiting both ZG and RDFN. Despite questions about the achievability of faster-than-market growth through 2025, Erickson views the current trends as a positive indication of ZG’s market strategy effectiveness.
In other recent news, Uber Technologies (NYSE:UBER) has partnered with FreshDirect to offer on-demand grocery delivery in New York City via the Uber Eats platform. This collaboration aims to provide Uber customers with access to FreshDirect’s fresh produce and other essentials, leveraging Uber’s delivery network for speed and convenience. Meanwhile, Truist Securities has raised Uber’s stock price target to $92, citing strong performance in Uber’s business segments, particularly in Mobility Gross Bookings and the Delivery segment, which are performing better than market expectations. The firm maintains a Buy rating, reflecting confidence in Uber’s strategies, including its recent rollout of autonomous vehicle services in partnership with Waymo in Austin.
Additionally, Uber has started offering Waymo’s driverless rides in Austin, marking a significant step in its collaboration with the autonomous vehicle company. This move is part of Uber’s strategy to partner with driverless vehicle manufacturers following the discontinuation of its own self-driving technology development. BTIG analyst Jake Fuller also reaffirmed a Buy rating on Uber with a $90 price target, highlighting Uber’s strategic approach to autonomous vehicle investments. The discussions with Uber’s leadership indicated that the company plans to use its balance sheet to support AV technology commercialization, focusing on acquiring minority stakes in AV software developers and fleet operators. These recent developments underscore Uber’s ongoing efforts to expand its services and innovate within the transportation sector.
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