Uber Stock Is a Buy: But You'll Have to Watch It Closely

Uber (NYSE: UBER) stock looks attractive based on its recent financial performance. Not only is its growth accelerating, but the company is generating heaps of cash and is buying back tons of its stock. Even more, the tech stock's valuation looks borderline cheap in relation to its stellar growth profile.Understanding the investment case for Uber is easy. The company matches riders and couriers with drivers and merchants across its mobility (rides) and delivery (food and grocery) marketplaces. Scale in this lucrative platform-based business model brings cost leverage and a growing stream of cash that management reinvests in its business, while also leaving plenty left over for share repurchases. But there is a catch that investors cannot ignore: There are some significant threats to its business in the autonomous vehicle space, including Alphabet's Waymo and electric-car maker Tesla (NASDAQ: TSLA). Both companies have autonomous vehicle initiatives that, if scaled quickly, could disrupt Uber's business.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool