From Yahoo Finance: 2025-06-07 18:41:00

The world’s mobility landscape is evolving, with Uber Technologies and Carvana at opposite ends of the spectrum. Uber dominates the U.S. ride-hailing market, while Carvana offers affordable used cars. Despite their differences, both companies have solid demand. However, Uber’s revenue growth and market dominance make it a better investment choice.

Uber’s $175 billion company saw an 18% increase in revenue last year, generating almost $3 billion in operating net income. Carvana, on the other hand, reported $13.7 billion in revenue for 2024, with most profits from retail sales. Carvana’s growth is impressive, driven by marketing and technology.

Despite Carvana’s exceptional growth, its stock has surged over 200% in the past year. In contrast, Uber’s stock hasn’t seen significant progress since March last year. Uber’s revenue growth remains steady, and the company is well-positioned in the evolving mobility trend.

Uber’s presence in the global ride-hailing market is set to grow, aligning with the changing preferences of younger generations who are less interested in owning cars. Carvana’s success is based on offering affordable used cars, but the cyclical nature of the auto industry could impact its future performance.

The current market values Carvana’s shares above analysts’ consensus price, while Uber’s stock is below average price targets. With Uber’s strong market position, revenue growth, and future prospects in the evolving mobility landscape, it presents as a better investment opportunity compared to Carvana.

The Motley Fool Stock Advisor team has identified the top 10 stocks for investors to buy now, with Uber not making the cut. The team’s recommendations have historically outperformed the market significantly. Considering the strong market position and growth potential, Uber remains a compelling investment choice over Carvana.



Read more at Yahoo Finance: Best Stock to Buy Right Now: Uber vs. Carvana