Uber Earnings: The Platform Is More Easily Attracting Demand and Supply; Shares Remain Undervalued

Demand for Uber’s mobility and delivery remained high as indicated by third-quarter results, which showed GAAP profitability for the second consecutive quarter. While the numbers continue to display the firm’s network effect moat source, we were more impressed with Uber’s ability to gain traction in more markets and increase adoption of more non-UberX products like Uber for Business, taxi platform, and shared rides, further driving growth. We are maintaining our $68 fair value estimate and still view the shares of narrow-moat Uber as attractive.