Strong Q3 Indicates Uber May Be Resistant to Macro Uncertainties; Shares Remain Attractive

We were pleased with Uber’s impressive third-quarter results as the firm saw strong demand and generated positive adjusted EBITDA and free cash flow. Uber continues to progress toward GAAP profitability, which we still project will be in 2024. Improvements on the demand and supply sides of the platform indicated further strengthening of Uber’s network effect moat source. Surprisingly, with significant macro uncertainties in the U.S. and globally, management still sees higher demand in the fourth quarter. We are maintaining our $73 fair value estimate. While the stock is up 13%, we still view the shares of this narrow-moat firm as attractive.