What's the Bull Case for Uber, Again?

Ridesharing giant Uber (NYSE: UBER) doesn't make any money. In fact, it's not even close to turning a profit. It wasn't close before the pandemic, and it's not close now. Through the third quarter of 2020, Uber's cumulative net loss since the company was founded totaled $22 billion.

Of course, the pandemic has devastated demand for ridesharing. But even before the pandemic, Uber's dominant market share in the U.S. wasn't nearly enough for the company to turn a profit. Yes, Uber recently began touting that its ridesharing business was profitable on an adjusted EBITDA basis. But adjusted EBITDA is a meaningless metric. "Think of the basic intellectual dishonesty that comes when you start talking about adjusted EBITDA," famed investor Charlie Munger said earlier this year.

With Uber unable to turn a profit despite dominating the market for ridesharing, the bull case for the stock for a long time centered around self-driving cars. Today, Uber takes a cut of the revenue generated from each ride. When self-driving cars eliminate drivers, Uber could take it all.

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Source Fool.com