Jim Cramer’s Bullish Case for Uber: Riding the Autonomous Wave
42min read Jim Cramer, the outspoken host of CNBC’s Mad Money, has long been known for his bold stock picks. In early 2025, he doubled down on one of his most controversial recommendations: Uber Technologies (UBER). Despite headwinds like quarterly misses in its freight division and broader market skepticism, Cramer argued that Uber is positioned to dominate the next era of transportation—and that investors willing to “risk their neck” could be handsomely rewarded.
The Earnings Rebound and Undervalued Stock
Uber’s February 2025 earnings report initially sent its stock into a tailspin, as investors fixated on a miss in its freight segment. Yet Cramer saw the sell-off as a buying opportunity. “The market is nitpicking guidance,” he said, “but Uber’s core mobility and delivery segments smashed estimates.” Within weeks, shares rebounded 16%, a surge Cramer attributed to the company’s undervalued position relative to its growth trajectory.
Why Autonomous Vehicles (AVs) Are Uber’s Secret Weapon
Central to Cramer’s bullish thesis is Uber’s strategic pivot to autonomous vehicles. Far from being a threat, Cramer argues that AVs will amplify Uber’s dominance. Companies like Tesla, which are developing robotaxis, will need to partner with ridesharing platforms like Uber to manage logistics, customer service, and fleet operations. “Uber has the scale and expertise to handle large AV fleets,” Cramer noted. “Tesla or others might build the cars, but they’ll need Uber’s ecosystem to succeed.”
A key partnership announced in April 2025 underscores this point: Volkswagen agreed to supply thousands of fully autonomous ID. Buzz electric vehicles to Uber for deployment in U.S. markets, starting with Los Angeles in 2026. The collaboration highlights Uber’s role as a critical partner in the AV supply chain.
Navigating Competition and Market Volatility
While Cramer acknowledges risks—such as regulatory challenges or investor skittishness—he dismisses existential threats from competitors like Tesla. “Tesla’s stock is down 32% year-to-date in 2025,” he pointed out. “That’s good news for Uber, as it reduces competition and investor anxiety about robotaxi dominance.”
Meanwhile, Uber’s own initiatives are diversifying its growth. New programs like “Uber Teen” (a safer ridesharing option for minors) and “UberX Share” (shared rides at lower prices) are capturing underpenetrated markets. Even its airport shuttle service in New York City has seen strong demand, proving Uber’s ability to innovate beyond its core business.
The Hedge Fund Play and Long-Term Outlook
Cramer’s confidence is bolstered by institutional support: 136 hedge funds held Uber shares as of early 2025, a figure he ties to outperformance. His newsletter’s strategy of mirroring top hedge fund picks has delivered 373.4% returns since 2014, a track record he claims justifies his stance.
Looking ahead, Goldman Sachs analyst Eric Sheridan projects Uber could achieve mid-to-high teens revenue growth in mobility bookings over the next two to three years. With partnerships like the Volkswagen deal and a $40 billion market cap, Uber is positioned to capitalize on the $1.2 trillion autonomous vehicle market expected to emerge by 2030.
Risks and the Bottom Line
No investment is without risks. Uber’s FTC lawsuit over its Uber One subscription service and quarterly misses in its freight division remain concerns. Yet Cramer argues these are “speed bumps” in Uber’s long-term story. “This isn’t a quick flip—it’s a ‘buy and hold’ for years,” he said.
The data backs him: since 2014, Uber’s stock has risen 850%. Even after its 2025 rebound, it trades at a P/E ratio of 25, below peers like Lyft (P/E 38). With autonomous vehicles, underpenetrated markets, and institutional backing, Uber’s valuation appears a bargain for the bold.
Conclusion: A Risk Worth Taking
Jim Cramer’s stance on Uber isn’t for the faint-hearted. But for investors willing to look past short-term noise, the case is compelling. Uber’s strategic dominance in AV partnerships, its undervalued stock, and its ability to innovate across mobility, delivery, and new services make it a rare “one-off success story” in a volatile market.
As Cramer put it: “I’m glad I defended this one. I don’t think it’s done going higher.”
In a world where Tesla’s struggles and autonomous vehicle adoption are reshaping transportation, Uber is building a moat few can replicate. The risk? A volatile market or regulatory missteps. The reward? A piece of the future of mobility. For now, Cramer’s bet remains open—and he’s all in.
