Neil Patel, The Motley Fool

Fri, May 30, 2025, 2:18 PM4 min read

• Uber's revenue growth, coupled with a scalable business model, is now resulting in huge profit generation.

• Despite macro uncertainty, Uber is reporting strong financial performance, which may indicate that demand for its apps could be resilient to a recession.

• Investors aren't being asked to pay a steep valuation for a company that still has meaningful expansion potential.

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Uber (NYSE: UBER) shares have been in the fast lane. Just this year, they're up 48% (as of May 28). In the past five years, they have soared an impressive 156%, crushing the broader market by a wide margin. The market has become enthused with the business, thanks in large part to strong financial results under CEO Dara Khosrowshahi's leadership.

It has been remarkable to watch Uber's ascent from a scrappy start-up in 2009 to now being a global enterprise. This growth stock is a winner in the eyes of investors. But where will Uber be in five years?

It's worth immediately calling out that this business is now generating substantial profits, which critics probably never thought would become a reality. This perspective was understandable; in 2019, Uber reported a massive operating loss of $8.6 billion. An increasing focus on efficiencies, expense controls, and profitable growth has supported an expanded bottom line, with operating income totaling $1.2 billion in the first quarter of 2025 alone.

Uber's earnings power should continue improving in the years ahead. This is technically a software business, after all. And that means it should scale up in a profitable manner, which is precisely what we've seen in recent years. The leadership team believes adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) will grow by up to 40% per year between 2024 and 2027.

Economists, analysts, corporate executives, and consumers are all worried about the direction of the economy. President Donald Trump's trade announcements are also taking everyone on a roller coaster ride of confidence and uncertainty.

Uber's success in the face of this unfavorable backdrop is notable. Revenue was up 14% in Q1, propelled by a 14% jump in gross bookings and 18% more trips completed. This should make investors wonder whether Uber is somewhat recession-resistant. In tough times, consumer spending might generally be under pressure, but people will still need to get from place to place and want food and groceries delivered.