Will Uber's market capitalization reach a trillion dollars by 2035?

The bull market has boosted some companies more than others. Advantage (NYSE: UBER)The company has been a clear beneficiary, with its share price tripling since the start of 2023. Currently, enthusiasm around the company is running high.

This one. Growth-oriented technology stockscan it or can't it Maintaining Strong Momentum to Reach a Trillion Dollar Market Capitalization by 2035? Here's what investors should consider.

Solid Foundation

Uber's financial performance has been solid, with mass bookings soaring 191 TP3T to $138 billion in 2023, helping drive revenue growth of 171 TP3T to $37 billion. These numbers are significantly higher than they were five years ago (albeit at a lower rate of growth), suggesting that the company's mode of operation is far greater than it was before the pandemic. The company completed more trips and had more users than ever before.

Even with Uber's presence in 10,000 cities around the world, Koon is optimistic about its long-term prospects. The primary goal is to attract more users, so they can use more products and spend more money on the platform.

Shareholders also have a lot to be encouraged about when it comes to Uber's profitability. Thanks to tighter cost controls and operational leverage, the company is finally starting to improve its profitability. 2023(math.) genusFor the first time, Uber has announced its annual Operating Profit The total amount of money spent on the project amounted to $1.1 billion.

Last year, the company generated $3.4 billion in free cash flow. It's reasonable to expect that number to go even higher as its operations continue to expand. If earnings growth outpaces revenue growth over the next decade, the stock is likely to rise along with it.

It's best to lower your expectations.

Uber has seen phenomenal growth since its inception in 2009. But as the business matures, growth will naturally begin to slow. The low-hanging fruit has been plucked in terms of attracting drivers and riders. It's almost impossible to maintain its previous monster growth indefinitely.

For Uber's market capitalization to grow from its current $155 billion to $1 trillion by 2035, its value would need to grow by 5,451 TP3T. this implies an annualized yield of 18.51 TP3T, which is an extraordinary speedThe Although investor They will be cheering this result, but they should lower their expectations.

That's because it takes high assumptions to even imagine Uber reaching its trillion-dollar goal. Maybe it will be a huge success in another industry it hasn't yet entered, or maybe it will successfully develop self-driving car technology. However, these are unpredictable and should not be treated as a sure thing.

To be clear, I don't think it's a bad business. I think the opposite. I think the facts show that Uber is a quality business. It is by far the market leader in ridesharing in the US, and second only to Uber in food delivery.DoorDashThe company also benefits from a strong network presence, which will support its competitive position for a long time to come. In addition, the company benefits from a strong network presence, which will support its competitive position for a long time.

Investors should also consider the company's valuation and how it may change. As of this writing, the forward P/E ratio of the company's stock is 34, which is the same as the P/E ratio of the company's stock. Standard & Poor's 500indices and technology stocks more Nasdaq Resonance 100 indicesCompared to the other two, both have a relatively large premium. Over time, I expect this valuation multiple to shrink, thus adversely affecting shareholders' additional returns. Over time, I would expect this valuation multiple to shrink, which would adversely affect the additional returns to shareholders.

If you're hoping for a $1 trillion market cap by 2035, don't get your hopes up. But it's not a bad idea to consider buying the stock now.

Should You Invest $1,000 in UberTech Now?

Consider this before you buy shares of UberTech, Inc:

Motley Fool Stock AdvisorThe analyst team has just selected what they think is the best name for investors to buy now.10Only the stock ...... is included in the list, but not Superior Technology. The 10 stocks that made the list could generate huge returns in the coming years.

Consider April 15, 2005Nvidia) on the list at ...... If you invest $1,000 at the time of our recommendation, theYou will have $555,209.! *Stock Advisor provides easy-to-use stock investment tools for investors.

Stock AdvisorIt provides investors with an easy-to-understand blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. Stock Advisor The service has contributed to the S&P 500 Index's return since 2002.translate twiceMuch*.

View 10 Gift Certificates

*Stock Advisory Rates as of April 8, 2024

Neil Patel and his clients do not own any of the stocks mentioned above. the Motley Fool holds recommendations for DoorDash and Uber Technologies. the Motley Fool has a disclosure policy.

Will Superior Reach a Trillion Dollar Market Capitalization by 2035? This post was originally published by The Motley Fool.