When investing in tech, there is nothing wrong with owning members of the “Magnificent Seven.” Those companies are the leaders in the tech sector and can continue to reward long-term investors.
There are, however, issues with having a portfolio too full and overly reliant on the Magnificent Seven, as it can overly tie your overall portfolio’s success to just a handful of companies, creating concentration risk. That’s why, for those looking for stock price appreciation from growth stocks and seeking to invest $500 or more beyond the usual suspects, one investment to consider is Uber Technologies (UBER 2.43%).
Image source: Getty Images.
Disrupt yourself or get disrupted
The word disruptor gets tossed around a lot, but that’s truly what Uber was when it started offering rides as UberCab in San Francisco in 2010. Previously, catching a ride wasn’t typically easy, as it depended on taxi availability, being in the right place at the right time, and sometimes a lot of pre-planning. Uber changed that, as you could just pull out your phone, request a ride, and a vehicle would appear in front of you in mere minutes or less.
It’s been a good business for Uber; revenue has surged from $6.5 billion in 2016 to more than $52 billion in 2025. It’s also becoming increasingly profitable, with Uber reporting net income of more than $10 billion in 2025. For its next act, however, Uber is entering an era in which it must once again become a disruptor.
New market, new opportunities
Uber’s business is often classified in different ways, typically landing on a hybrid of a software-based tech company in the logistics and transportation sector. But for what comes next, it’s becoming an even more tech-focused enterprise.
Because it doesn’t own its fleet, the future looked murky with the rise of autonomous vehicles (AVs) and robotaxis. If Uber was the evolution of the traditional taxi, robotaxis go a step further with autonomous on-demand ride-hailing.
In July 2025, Goldman Sachs Research found that 1,500 robotaxis were on the road in five U.S. cities. By 2030, that number is expected to reach 35,000 operating nationwide. According to Goldman Sachs, that number of robotaxis by 2030 would account for 8% of the U.S. rideshare market. To put a dollar figure on it, the global robotaxi market was valued at $4.4 billion in 2025 and is expected to skyrocket to $188.9 billion by 2034, according to Precedence Research.
Uber had a few options to get ahead of that disruption. One was the cost-intensive, low-margin business of building its own vehicles. Instead, it’s deciding to compete differently.
Today’s Change
(-2.43%) $-1.79
Current Price
$71.82
Key Data Points
Market Cap
$146B
Day’s Range
$71.32 – $74.97
52wk Range
$68.46 – $101.99
Volume
19.7M
Avg Vol
17M
Gross Margin
34.17%
The plan to thrive in the robotaxi world
Part of Uber’s playbook for robotaxis is buying them rather than building out its own fleet. It has spread its bets across potential partners, with deals with both Rivian Automotive and Lucid Group. Uber is expected to purchase 10,000 vehicles designed for robotaxi use from Rivian and as many as 40,000 more in 2030. It also has a deal to purchase at least 35,000 Lucid-designed vehicles.
The other part of that plan is serving as a partner to the robotaxi industry through its data and branding. For autonomous vehicle (AV) makers looking to launch robotaxis, training simulations can only go so far; they need vast amounts of data, which is exactly what Uber can provide. The billions of trips through Uber can be used to generate mapping data and routing information, and to help train AVs to navigate high-traffic environments.
For its branding, Uber already has a gateway into the robotaxi market for AV makers through its app. Instead of companies having to convince ride-hailers to download a new app, set up an account, and slowly build a network, AV makers already have an instant customer base to connect with through the Uber app.
Bonus opportunities and what to consider
Uber’s opportunities in the robotaxi market aren’t the only thing to consider; there’s even more to the company worth digging into for potential investors. It has a partnership with Joby Aviation for air taxis, robots that will bring Uber Eats customers food directly to their door, and an investment in the scooter and electric bike company, Lime, which is planning an initial public offering (IPO).
Of course, like any company, Uber has its challenges. The ride-hailing sector is becoming increasingly competitive; there are regulatory hurdles; and the stock price can be more prone to short bouts of volatility than the broader markets. Just as an example, as of this writing, Uber’s share price is down about 20% during the past 12 months, significantly underperforming the S&P 500’s 25% gain during the same period.
Still, for those looking beyond the Magnificent Seven for tech opportunities, there’s a lot for a long-term investor to like about Uber.
