u/Odd-Record-1041

Why I am bullish on Uber

I wanted to lay out why I’m so high on Uber right now. I’m currently an analyst in the auto sector and worked on the fleet management side of an auto company for my first job after college. I do not think AV will kill Uber, and I think overall Uber will be in a better position in 5 years.

1. Asset Light

My first job was in fleet management, and there is a reason why so many companies outsource this. The overhead for maintenance, insurance, cleaning, and cycling out old units is a massive drag. Companies like Google (Waymo) want to be high-margin software plays. Do they really want to pivot their entire business model to managing millions of physical, depreciating assets? I do not think they want to. To scale to meet the ride sharing demand, Waymo and Tesla will have to put a ton of resources in. Uber’s move to stay asset light I think is the correct approach. They just signed that deal with Zoox for Vegas and LA, they have the Rivian and Lucid partnerships, and they’re already deepening their integration with Waymo. They get the benefits of the tech without the headache of the hardware.

2. Valuation and Cash Flow

Uber has officially shifted from a cash burner to a cash generative machine. They are now printing billions in free cash flow, hitting a record $2.3 billion in Q1 2026 alone. They are buying back shares hand over fist with a massive authorization in place. Despite this, the valuation is still attractive. With a forward PE of 22x and earnings growth projected over 40%, the PEG ratio is sitting around 0.5 to 0.6. The market is pricing this high growth company as if it is a slow growth grocery store with low margins, ignoring the massive free cash flow growth.

3. AV will be a tailwind in the long term

AV has been a headwind not allowing Uber stock to breakout. I think AV will end up being a tailwind that solves Uber's biggest problem, their drivers. The legal battles, insurance hike, and labor disputes associated with human drivers get eliminated. It turns a variable, complicated expense into a predictable, scalable utility.

4. Understanding Uber

Uber is the demand layer. In the same way Expedia won hotels without owning a single bed, Uber is going to win AVs without owning a single car. I do not think there will be a Tesla app, a Waymo app, a Zoox app, and a Rivian app on your phone. They’re going to open the one app they already use that has the most cars nearby. Uber has the demand moat. I think the overall ride sharing pie will continue to grow, and Uber will be in a great spot in 5 years.

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u/Odd-Record-1041 — 3 days ago
▲ 40 r/stocks

Why I’m bullish on Uber

I wanted to lay out why I’m so high on Uber right now. I’m currently an analyst in the auto sector and worked on the fleet management side of an auto company for my first job after college. I don’t think Autonomous Vehicles (AV) will kill Uber, in fact, I think Uber will be in a much stronger position 5 years from now because of them.

1. The "Asset Light" Advantage

My first job was in fleet management, and there is a very good reason why companies outsource this. The overhead for maintenance, insurance, cleaning, and constantly cycling out old units is a massive, low margin drag.

Companies like Google (Waymo) want to be high-margin software plays. Do they really want to pivot their entire business model to managing millions of physical, depreciating assets? I don't think so. To scale and meet actual ride-sharing demand, Waymo and Tesla would have to commit a staggering amount of capital and physical infrastructure. Uber’s move to stay asset light is exactly the right move. They just signed that deal with Zoox for Vegas and LA, they have the Rivian and Lucid partnerships, and they’re already deepening their integration with Waymo. They get the benefits of the tech without the headache of the hardware.

2. Printing Cash

Uber has officially shifted from a cash burner to a cash generative beast. After the Q1 2026 results that just came out, they are hitting billions in Free Cash Flow and buying back shares hand over fist (including that recent $3B authorization). The market is pricing this like a slow growth, low margin grocery store, but the actual data shows a high growth platform with expanding margins.

3. AV will be a long term tailwind

For a long time, the "AV threat" was a headwind that kept the stock from a true breakout. But I think AVs eventually become a massive tailwind that solves Uber’s biggest operational bottleneck, the drivers. Transitioning to autonomous fleets eliminates the constant friction of legal battles, labor disputes, and surging insurance costs associated with human drivers. It turns a variable, complicated expense into a predictable, scalable utility.

4. Uber is the "Demand Layer"

At the end of the day, Uber owns the customer. In the same way Expedia won hotels without owning a single bed, Uber is going to win AVs without owning a single car. I really don't think most people are going to keep a Tesla app, a Waymo app, a Zoox app, and a Rivian app on their phone. They’re going to open the one app they already use that has the most cars nearby.

Uber has the demand moat. I think the overall ride sharing pie will cotinine to grow, and Uber will be in a great spot in 5 years.

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u/Odd-Record-1041 — 3 days ago
▲ 8 r/AcuraTL+5 crossposts

Help me choose: Buying a "luxury" car this Saturday

Hello,

I’m headed out to buy a new (to me) car this Saturday and I’ve narrowed it down to four options. I’m looking for a balance of reliability and engagement. Here’s the shortlist:

1. 2008 INFINITI G35x Base

  • Price: $8,495 | Mileage: 111,733
  • Pros: Fairly clean Carfax; sway bar already replaced; features the VQ35HR engine (much better oil consumption than the older DE).
  • Cons: Higher mileage for the price, oldest "G" platform on the list.
  • Carfax Link

2. 2009 INFINITI G37x

  • Price: $8,397 | Mileage: 103,712
  • Pros: Newer model year; 3.7L engine; only two owners.
  • Cons: Listed at a Mazda dealership with no photos yet, sight unseen for now.
  • Autocheck Link

3. 2008 Lexus ES 350 Base

  • Price: $9,000 | Mileage: 108,667
  • Pros: Lexus reliability and comfort.
  • Cons: Definitely the "boring" choice of the group, no Autocheck/Carfax available yet.

4. 2007 Acura TL 3.2

  • Price: $7,500 | Mileage: 106,820
  • Pros: Loved driving my wife's father's old '04 TL, cheapest option, solid Carfax, radiator replaced 30k miles ago. It's also red.
  • Cons: No record of a timing belt change. I know this is a massive job/headache if it hasn't been done.
  • Carfax Link
reddit.com
u/Odd-Record-1041 — 7 days ago