What Happened?
Shares of ride sharing and on-demand delivery platform Uber (NYSE: UBER) jumped 2.9% in the morning session after the stock's positive momentum continued as the company announced its first venture into drone delivery through a new partnership with Flytrex.
The deal set the stage for a drone delivery service, expected to launch on Uber Eats in U.S. pilot locations by the end of 2025. Uber's leadership described the move as entering the 'next chapter' of autonomous technology, aiming to create more cost-efficient last-mile logistics. This strategic step into a new delivery frontier was met with positive sentiment on Wall Street.
Analysts at Raymond James boosted their price target on the stock to $105.00 from $100.00 and maintained a 'strong-buy' rating. The partnership aligns with a bullish outlook for the broader ride-hailing industry, which research firm Mordor Intelligence projected would grow at an average annual pace of 16.6% through 2030.
After the initial pop the shares cooled down to $98.15, up 3.7% from previous close.
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What Is The Market Telling Us
Uber’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock dropped 4.4% on the news that its autonomous vehicle partner, Waymo, announced it would team up with rival Lyft for its upcoming robotaxi expansion in Nashville. The move signaled a significant shift, as Waymo's decision meant its driverless vehicles would be available on the apps of the two largest U.S. ride-hailing services, intensifying the competitive landscape.
Uber is up 55.4% since the beginning of the year, and at $98.15 per share, it is trading close to its 52-week high of $98.85 from September 2025. Investors who bought $1,000 worth of Uber’s shares 5 years ago would now be looking at an investment worth $2,690.
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