Why did Melius downgrade Uber stock?

Melius cut Uber to Sell with a US$73 target, warning that robotaxi services from Waymo and Tesla could erode pricing power and long‑term returns. They argue autonomous fleets may pressure take rates and margins, challenging Uber’s premium valuation. The call shifts focus to competition and execution through 2026, especially around pricing and cash flow.

Is Uber stock still a Buy after the downgrade?

The broader Street remains constructive, with roughly 29 Buys and 3 Holds and an average target near US$111.6 on recent data. That contrasts with Melius’ US$73 view. Investors should weigh autonomous competition risk, execution on margins, and cash flow quality. Upcoming earnings and guidance could narrow that wide target gap.

What should Canadian investors watch next?

Focus on February 4 earnings, Mobility take rate, Delivery unit economics, and any commentary on autonomous partnerships. Track technical levels near US$75‑76 support and US$83‑90 resistance. Also consider CAD‑USD moves, since currency shifts can change returns. Clear risk controls help manage volatility from headlines and guidance.

How do Waymo and Tesla affect the thesis?

If robotaxis scale, they could lower ride costs and take share from driver‑based platforms, pressuring pricing and take rates. Progress from Waymo and Tesla on commercialization, safety, and regulation is central to the bear case. Timelines are uncertain, so news flow alone can sway sentiment on Uber stock.

Global Market Insights

UBER Stock Today, January 07: Melius Sell Call Flags Robotaxi Threat

ByDanny Kontos January 7, 2026January 7, 2026

Uber stock is in focus today after Melius downgraded shares to Sell and set a US$73 target, pointing to rising robotaxi competition from Waymo and Tesla. For Canadians, this call matters because it questions long‑term pricing power and premium valuation. Shares of UBER recently traded near US$80 with a 52‑week high of US$101.99. Most analysts still rate the name positively, but sentiment can change quickly around autonomous driving headlines and earnings. We break down what this means for risk, timing, and portfolio positioning in Canada.