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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Lawrence Nga, The Motley FoolSun, January 18, 2026 at 6:05 PM GMT+1 5 min readMargin expansion is the make-or-break factor for the ride-hailing service.Advertising could reshape how Uber's shares are valued by investors.Delivery needs to prove that it can grow without eroding unit economics.10 stocks we like better than Uber Technologies ›Uber Technologies (NYSE: UBER) has already done something many critics thought impossible: It built a profitable, global platform out of ride-hailing and delivery. The company now generates consistent earnings and meaningful free cash flow, and operates with far more discipline than during its growth-at-all-costs era.But profitability alone doesn't double a stock. For Uber shares to realistically double from here, investors would need to see a rerating, driven not by faster revenue growth, but by higher and more durable earnings growth. That rerating depends on a few things going right at the same time.Here are the three that matter most.Image source: Getty Images.This is the non-negotiable condition. Uber doesn't need explosive top-line growth to double its size. The market already expects steady, mid-teens revenue expansion. What's probably not fully priced in is continued operating leverage.In recent years, Uber proved that incremental trips can be profitable. Mobility improved as incentives normalized and scale effects took hold. For instance, adjusted EBITDA margin has been on a gradual uptrend in the last few quarters. For the stock to double, that trend must continue.The risk is subtle but real. As competition stabilizes and markets mature, Uber may feel pressure to reaccelerate growth using incentives. That would support bookings growth, but cap margin expansion and earnings growth.In other words, Uber needs to show restraint. If revenue grows 10% to 12% annually while EBITDA grows 20% or more, investors will begin to model Uber as a scaled platform with compounding earnings, rather than a cyclical transportation business. That's the kind of financial profile that supports a higher valuation multiple over time. If margins stall, upside becomes much harder to justify.Uber's advertising business represents the cleanest path to earnings acceleration. Ads don't require drivers, couriers, or physical assets. They monetize demand that already exists, and they carry significantly higher incremental margins than rides or deliveries.Today, advertising still accounts for a small portion of Uber's overall revenue, but it's growing faster than the core business. For Uber stock to double, ads need to evolve from an interesting side business into a material contributor to earnings.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,940.01 -4.46 (-0.06%)Dow 3049,359.33 -83.07 (-0.17%)Nasdaq23,515.39 -14.61 (-0.06%)Russell 20002,677.74 +3.18 (+0.12%)VIX18.84 +3.00 (+18.94%)Gold4,687.50 +92.10 (+2.00%)Trending tickersMU Micron Technology, Inc. 362.75 +26.12 (+7.76%)CRML Critical Metals Corp. 17.65 +0.40 (+2.32%)IBRX ImmunityBio, Inc. 5.52 +1.57 (+39.75%)META Meta Platforms, Inc. 620.25 -0.55 (-0.09%)NVDA NVIDIA Corporation 186.11 -1.01 (-0.54%)PortfolioSign in to access your portfolioSign inTop gainersIBRX ImmunityBio, Inc. 5.52 +1.57 (+39.75%)AGX Argan, Inc. 383.66 +54.00 (+16.38%)RIOT Riot Platforms, Inc. 19.23 +2.64 (+15.92%)ASTS AST SpaceMobile, Inc. 115.77 +14.52 (+14.34%)FIGR Figure Technology Solutions, Inc. 73.91 +9.00 (+13.86%)Top losersZGN Ermenegildo Zegna N.V. 9.56 -1.46 (-13.25%)SSL Sasol Limited 6.31 -0.84 (-11.75%)TLN Talen Energy Corporation 371.66 -47.41 (-11.31%)CEG Constellation Energy Corporation 307.71 -33.42 (-9.80%)GTM ZoomInfo Technologies Inc. 9.04 -0.97 (-9.65%)Most activeWMT Walmart Inc. 119.70 +0.50 (+0.42%)NVDA NVIDIA Corporation 186.11 -1.01 (-0.54%)IBRX ImmunityBio, Inc. 5.52 +1.57 (+39.75%)ONDS Ondas Inc. 12.14 -0.71 (-5.50%)INTC Intel Corporation 46.99 -1.28 (-2.65%)Top economic eventsEarnings eventsMy earnings eventsEarnings events