Jim Cramer Recommends Buying Uber Stock Despite Earnings Drop
Jim Cramer, renowned host of CNBC’s Mad Money, recently analyzed the performance of Uber Technologies (UBER) following its latest earnings report. He labeled the stock as a “buy on weakness,” emphasizing confidence in its long-term potential despite a recent decline in share price.
Uber’s Earnings Performance
On Tuesday, Uber’s shares dropped over 5%. This decline occurred even after the company surpassed Wall Street estimates concerning both revenue and earnings. However, the stock has seen a remarkable increase of nearly 57% in 2025, driven primarily by consistent growth in its Rides and Delivery segments.
Strong Business Strategy
Cramer highlighted Uber’s effective operational strategy, which he believes is central to its ongoing success. He pointed out that the company is achieving substantial financial gains and demonstrating strong fiscal discipline.
- Rides and Delivery Growth: Cramer praised the robust performance in both ride-hailing and food delivery markets.
- Membership Program Success: The Uber One membership initiative is contributing to customer loyalty and steady revenue streams.
- Margin Pressure: Disappointment over softer margins among some investors is linked to competition from DoorDash and Lyft.
Investment Outlook
Despite the recent sell-off, Cramer believes this presents a buying opportunity for long-term investors. He reassured that there are no significant concerns from the latest quarterly performance. He called the drop a reaction to broader market trends rather than Uber’s underlying fundamentals.
- Cramer’s Position: “This is the kind of dip you buy.”
- Strong Investment Metrics: UBER has a consensus rating of Strong Buy based on 27 Buy and 4 Hold ratings from analysts.
- Future Price Target: The average stock price target for Uber is $110.61, indicating a potential upside of approximately 16.92% from current levels.
In summary, Jim Cramer advocates for the potential of Uber’s stock, suggesting that investors take advantage of the current dip. With steady growth and a clear strategy in place, Uber remains a strong contender in the evolving market landscape.
