Uber Shares Plunge 3.85% Amid Waymo's Dallas Expansion Surging to 35th in $2.18 Billion Trading Volume

Uber (UBER) fell 3.85% on July 29, with a trading volume of $2.18 billion—a 106.91% increase from the prior day—ranking 35th in market activity. The decline followed news that Waymo, Alphabet’s autonomous vehicle unit, announced a partnership with Avis Budget Group to expand its self-driving ride service to Dallas in 2026. Avis will manage the fleet, accessible via the Waymo One app, marking a direct competitive move into a market where Uber had previously partnered with Avride for its robotaxi plans.

Analysts highlighted the strategic tension between Uber and Waymo, noting Dallas joins cities like San Francisco and Los Angeles where the two companies now compete. Uber’s reliance on partnerships with autonomous vehicle developers, including Waymo, has raised concerns about potential conflicts. Wedbush analyst Scott Devitt observed that Waymo’s expansion “validates concerns Uber’s evolving strategy may strain its relationship with Waymo,” though he maintains a neutral stance on the stock due to ongoing competitive risks. Uber has also pursued collaborations with Lucid and Nuro for its robotaxi initiatives, aiming to deploy over 20,000 vehicles in six years.

Uber’s stock has faced volatility in July, retreating 7% and dipping below its 50-day moving average. The company is set to report Q2 earnings on August 6, with a current IBD Composite Rating of 96 out of 99. Despite a 50% year-to-date rally from late 2024 lows, investor sentiment remains sensitive to developments in the autonomous ride-hailing sector.

A backtested strategy of purchasing the top 500 stocks by daily trading volume and holding for one day yielded a 166.71% return from 2022 to 2025, outperforming the benchmark’s 29.18% gain. The approach delivered a 137.53% excess return, a 31.89% compound annual growth rate, and a Sharpe ratio of 1.14, with no maximum drawdown recorded.