Uber Technologies has achieved profitability and generates consistent earnings and free cash flow. For its stock to double, it needs higher and more durable earnings growth, driven by margin expansion, steady revenue growth, and continued operating leverage.

Uber’s advertising business could accelerate earnings growth with higher margins. Ads, growing faster than the core business, have the potential to become a significant contributor to earnings and change how investors value the company.

While Uber Eats no longer defines the company, it still impacts how investors value it. To double its stock, Eats must remain contribution-profit positive, expand into new categories without eroding economics, and support higher-margin businesses like advertising and subscriptions.

For Uber to double its stock, it needs a combination of margin expansion, improved earnings quality from advertising, and Eats removing downside risk. This execution strategy could lead to both earnings growth and valuation rerating.

Uber doesn’t need perfection to double its stock; it needs to execute its strategy. By expanding margins, scaling advertising responsibly, and demonstrating that Eats supports profitability, Uber could see its earnings power significantly increase within a few years.

Read more at Yahoo Finance: What Would Have to Go Right for Uber Stock to Double From Here?