Uber Stock Downgraded Amid Robotaxi Competition: Price Target Outlook

Melius Research downgraded Uber (UBER) to Sell on competition risks.

This contrasts with Wall Street's .

Wolfe Research maintains a aligning with median projections.

Uber shares face pressure after an unexpected downgrade sparked new investor concerns. Melius Research cut Uber to Sell citing autonomous vehicle competition threats despite its recent revenue momentum. The move highlights growing worries about Uber's market positioning against robotaxi players. This creates tension between bearish warnings and ongoing analyst confidence in the ride-hailing giant's strategy.

Why Was Uber Stock Downgraded to Sell?

Melius Research downgraded Uber based on intensifying competition in autonomous vehicles. The firm sees rising threats from companies like and undermining Uber's pricing power. This Sell rating contrasts sharply with Wall Street's Strong Buy consensus. Analysts noted the downgrade reflects specific risks to Uber's returns as robotaxi services evolve. AV competition may challenge Uber's role as a demand aggregator in future mobility ecosystems.

Pressure is building despite Uber's and solid financial health. The downgrade comes amid stock declines with . Autonomous technology partnerships have become both strategic assets and potential vulnerabilities. Investors should monitor how quickly robotaxi services achieve commercial scale in key markets. That expansion timeline could determine Uber's competitive resilience.

How Does Autonomous Vehicle Competition Impact Uber's Growth?

Rising robotaxi competition threatens Uber's core ride-hailing and delivery margins according to market analysis. Melius warned that Waymo and 's standalone expansions could compress Uber's returns. The company's strategy of blending human drivers with AV partnerships faces execution risks. Autonomous vehicle adoption might accelerate faster than Uber can adjust its business model.

Uber is countering through UK driverless taxi tests with Lyft and Baidu according to analyst reports.

The firm also expanded delivery services with regional retailers to diversify income streams. Still, increasing AV players could challenge Uber's long-term profitability trajectory. Pricing power erosion remains a top concern if customers shift toward competing robotaxi platforms. That market fragmentation would .

What Is the Price Target for Uber Stock?

Wolfe Research analyst Shweta Khajuria for Uber shares. This aligns with the . according to market analysis. The conflicting views reflect differing valuations of Uber's AV strategy versus immediate risks.

Uber currently trades around $82.86 versus a . The stock shows longer-term strength with . Most analysts view Uber's advertising growth and Uber One loyalty program as margin expansion drivers. Investors should weigh AV competition threats against transformative potential in electrification partnerships. The outcome will determine whether Uber hits analyst targets or faces sustained pressure.