Tesla’s pain seems to be Uber’s gain
Uber has been strong out of the gate in 2025, with Goldman Sachs adding the taxi company to its “conviction list” of stocks to own on Tuesday.
Ride-hailing app Uber is seeing its second straight day of strong gains, in early trading, with a catalyst apparently being the addition of the company to Goldman Sachs’ “conviction list” of stocks to own in 2025.
The Fly reports:
“The firm sees scaling end markets, rising profitability levels, and increased evidence of the platform cross-sell and ‘flywheel’ effects driving a sustained mix of growth, margins and free cash flow for Uber. Goldman has a Buy rating on the shares with a $96 price target.”
Uber is in an interesting spot. After an underwhelming 2024, in which its shares slipped 2% and badly underperformed the 23% gain in the S&P 500, it seems investors are taking a second look at the company, which could benefit from any eventual autonomous-driving revolution, while at the same time generating real and growing profits now. (That’s a key difference from Tesla’s still largely theoretical Cybercab business, which is supposedly a key driver of Tesla sentiment of late.)
In fact, recently there’s been a bit of a divergence between the performance of Uber and Tesla shares, with a more negative correlation between the two — that is, when one goes up, the other goes down — than we’ve ever seen before. That might suggest that some investors see less of a threat of tech takeover of Uber’s key business from Tesla as it struggles to turn its self-driving taxi ambitions into a reality.
