I’ve seen plenty of posts about Uber lately, so I apologize for adding to the trend and asking yet another question about a heavily discussed stock.
Nonetheless, Uber is one I’m becoming increasingly interested in.
The main reason I view the stock as potentially being in value territory is that the market seems to be pricing in a fairly negative long-term scenario, particularly around autonomous driving.
Personally, I view ridesharing as becoming increasingly commoditized. While Tesla could eventually become a significant competitor, I believe Uber can remain relevant and compete on price. It already has a massive user base, a trusted platform, and a well-established network.
More importantly, Uber isn’t ignoring autonomous driving. It is investing in and partnering with companies pursuing autonomous vehicles, which could allow Uber to remain the platform connecting consumers with both human and autonomous drivers.
The question for me is whether Uber’s current valuation already prices in too much of the potential disruption or whether the market is underestimating how well positioned Uber could be for the transition.