In the investment world, the concept of a "forever stock" is increasingly rare. Historical examples demonstrate that companies once regarded as unassailable, like Sears and Kodak, can face significant declines that erode their perceived permanence in investor portfolios. This reality prompts skepticism about the existence of stocks that merit indefinite holding without reconsideration. Nevertheless, some companies come remarkably close to earning this distinction through their market presence, growth trajectories, and strategic positioning. Among these, Uber Technologies Inc. (NASDAQ: UBER) emerges as an investment in my portfolio that I intend to retain for the foreseeable future.
Uber's Market Role and Brand Strength
Uber is recognized worldwide thanks to its pioneering role in transforming urban mobility. As the global leader in ridesharing, it holds a substantial share of the market where users hire rides through its app-based platform. While in the United States, Uber trails DoorDash in food delivery, its Uber Eats division surpasses DoorDash in global revenue generation from delivery services. This distinction illustrates Uber's expansive international footprint and diversified revenue base.
Beyond serving consumers seeking convenient transportation and meal deliveries, Uber facilitates income opportunities for drivers. By enabling individuals to offer rides via its platform, it integrates consumer needs with income generation capabilities, fostering a two-sided marketplace. In even predominantly car-dependent regions like the U.S., some users opt to rely on Uber's services rather than owning personal vehicles, indicating a shift in consumer behavior that benefits the company.
Looking ahead, autonomous vehicles may accelerate reliance on mobility services like Uber's. The company has already initiated partnerships with automotive manufacturers including General Motors and technology leaders such as Alphabet, Google's parent company, aiming to advance autonomous driving technologies. These collaborations suggest Uber's intent to remain at the forefront of transportation innovation, positioning itself as a key network that can link self-driving vehicles with riders without needing to own the automobiles directly. This potential evolution could diversify Uber's revenue streams and reinforce its role as an essential component of future urban mobility ecosystems.
Financial Performance Reflects Growth and Efficiency
The promise of autonomous vehicle integration remains in early developmental phases, yet Uber's financial results reveal a company that has experienced robust growth outside of this emerging technology. In the first three quarters of 2025, Uber reported nearly $38 billion in revenue, marking an 18% increase compared with the same period in the previous year. This rate of top-line growth underscores the company's ability to expand its business consistently.
Of note, Uber's ability to contain expenses while growing revenue enhanced profitability. Costs and expenses increased at a pace slower than revenue, contributing to improved margin performance. Additionally, an income tax benefit amounting to approximately $4.3 billion positively impacted net income. Accordingly, net income in the first nine months reached $9.8 billion, more than triple the $3.0 billion recorded in the same period of the prior year.
Though external pressures such as economic uncertainty and regulatory considerations surrounding the classification of drivers as employees present potential growth constraints, Uber's fundamental business indicators remain positive. Gross bookings continue to rise, suggesting ongoing rider and delivery demand. Correspondingly, Uber's stock price appreciated by over 30% in the previous year, despite these challenges.
Valuation and Market Metrics Suggest Potential Upside
From a valuation perspective, Uber appears attractively priced relative to many peers. The substantial income tax benefit artificially lowered trailing and forward price-to-earnings (P/E) ratios, but even accounting for this, the one-year forward P/E ratio stands at around 19. This compares favorably to the broader S&P 500's average forward P/E of approximately 31, indicating that Uber’s valuation factors in its present challenges and market dynamics.
Considerations and Risks
Despite these advantages, investors should be mindful of several risks. Macroeconomic headwinds could dampen consumer spending or alter service demand patterns. Regulatory actions in various jurisdictions might impose employee status on drivers, increasing operational costs and complicating Uber’s business model reliant on contractor relationships. Finally, competitive pressures both within ridesharing and delivery services could affect market share and profitability.
Investment Conclusion
In summary, Uber stands out among stocks in my portfolio as one worthy of a committed, long-term holding. It boasts a global leadership position in both ridesharing and delivery markets, a comprehensive ecosystem that enables both service consumers and suppliers, and promising strategic initiatives toward autonomous vehicle integration. Combined with strong revenue and profit growth and a valuation that leaves room for appreciation, Uber presents itself as a stock capable of delivering substantial returns over time, balancing innovation with scale and financial discipline.