Cramer praises Uber stock: ‘I don’t think it’s done going higher’

CNBC’s Jim Cramer spent the past week highlighting stocks he thinks can work right now, and on Thursday, he pinpointed Uber. Among the company’s strengths is the potential to actually benefit from the rise of autonomous vehicles, Cramer said, instead of losing out, as some investors have feared.

“Uber’s another example of what’s working in 2025, though it’s more of a one-off success story than a participant in a broader theme, like the others I’ve mentioned,” he said. “Still, I’m glad I defended this one after the last quarter, and I don’t think it’s done going higher.”

When Uber reported in February, Cramer said investors did “some nitpicking on the guidance.” He claimed such criticism wasn’t enough to justify the stock’s sell-off in the immediate aftermath of the quarter. But since then, the stock has rallied, currently up a little over 16% since earnings, according to FactSet. Cramer was impressed that Uber beat gross bookings estimates for its main arms, mobility and delivery, even though its smaller segment, freight, missed.

Cramer pointed out that Tesla and CEO Elon Musk seem to have fallen out of favor on Wall Street, with the stock down more than 32% year-to-date. But this development is a positive for Uber, he suggested, because it means fewer people are worried about the threat robotaxis could pose to business. But to Cramer, these worries are unfounded. Tesla or other companies that start selling robotaxis will have to “make their peace”with ridesharing apps if they want to do business, he suggested, noting the way the Uber managed to largely wipe out business for cab companies.

Cramer also pointed to remarks from management, who suggested that robotaxies will face challenges in the commercial driving space, and Uber is “the player with the scale and expertise to run AV operations at the highest efficiency.” The rideshare giant is well-positioned to help companies manage business and issues that come with operating large fleets, the company continued. Cramer remarked that Uber can assist in servicing and charging the cars, as well as deal with common problems like fare disputes, lost items, and insurance claim resolution.

Cramer said he also likes other ventures currently underway at the company – including the continued growth of its “Uber Teen” and “UberX Share” programs, as well as its new shuttle service to and from a few New York City airports.

“While all the focus is on the future of autonomous driving, it’s easy to forget that Uber has a lot of other innovation going on that it’s finding success with,” he said.

Uber did not immediately respond to request for comment.

Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.

Disclaimer