UK shares have performed well recently. However, investors shouldn’t overlook international shares – in markets such as the US and Europe there are some really attractive opportunities today.
One international stock that I believe is worth a look is Uber (NYSE: UBER), which is listed in the US. Here are three reasons I’m bullish on this name.
Top- and bottom-line growth
Thanks to its powerful brand and massive global user base (200m users worldwide), Uber has grown at an impressive rate recently. Over the last three years, its revenue has climbed from $31.9bn to $52bn (annualised growth of 18%).
This isn’t just a top-line growth story, however. Today, Uber is very profitable and generating a ton of cash flow.
Note that with this cash flow, the company is buying back a lot of shares. This should turbo-charge its earnings per share growth going forward.
A major player in the robotaxi space
Looking ahead, the growth runway here has plenty of room to run. One key growth driver could be robotaxis.
Earlier this week, Nvidia – which has a partnership with the rideshare company – announced that Uber will launch a global fleet of Nvidia-powered autonomous vehicles, starting in Los Angeles and San Francisco in the first half of 2027 and scaling across 28 cities globally by 2028. This will be supported by the growing roster of Nvidia’s automotive partners (which includes the likes of Nissan, Hyundai, and Mercedes-Benz).
This partnership is a big deal. It could help the company become the ‘operating system’ for the global robotaxi industry and beat competitors such as Waymo and Tesla.
It’s worth noting that Uber has robotaxi partnerships with many other companies. Earlier this month, it announced a strategic partnership with Amazon-owned robotaxi company Zoox.
Via this partnership, Zoox taxis will be available on the Uber app, starting in Las Vegas this summer. Other companies it has partnered with include Lucid, Waymo, and UK-based Wayve.
I’ll point out that we don’t know exactly how robotaxis will affect Uber’s financials. But with no human drivers, there’s potential for dramatically lower costs (and higher profits).
Attractive valuation
In terms of the valuation, it’s very reasonable today. After a significant pullback in the share price recently, the stock is now trading on a forward-looking price-to-earnings (P/E) ratio of 23, falling to 18 using next year’s earnings forecast.
These are not high multiples. Considering the long-term growth potential here, the stock looks cheap, in my view.
Worth a look near $75
Of course, while there are many reasons to be bullish here, there are also risks. Competition from the likes of Tesla and Waymo is one to think about.
A drop in consumer spending is another. This could come about if AI leads to mass job losses.
All things considered though, I see a lot of appeal in the stock at current levels (near $75). In my view, it’s worth considering for an ISA or SIPP.
