Jim Cramer says now is a good time to buy Uber at a discount

CNBC's Jim Cramer laid out the bull and bear cases for Uber.
"Although Uber's stock has started rebounding in the new year...It's still darned cheap versus its growth rate, and I think you're getting a great chance to buy it at a discount. That's right, the stock of Uber is a buy."

CNBC's Jim Cramer on Monday laid out the bull and bear cases for Uber, and suggested that it's a good time to purchase the stock at a fairly inexpensive price.

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"Despite the selloff we got last quarter, there were some huge positives in this quarter if you listened to the conference call," Cramer said. "Although Uber's stock has started rebounding in the new year... It's still darned cheap versus its growth rate, and I think you're getting a great chance to buy it at a discount. That's right, the stock of Uber is a buy."

After spending most of 2024 on the upswing, Uber has taken a hit over the past few months after its October quarter failed to impress Wall Street. Although it beat on revenue, the company didn't meet analysts' gross bookings expectations, and shares have sunk nearly 8% since then. Cramer looked at two recent conflicting takes on Uber — the positive by Goldman Sachs' analysts and the negative by JMP's analysts — and explained why he's fairly bullish.

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Cramer agreed with Goldman Sachs' Eric Sheridan, who suggested that Uber can produce mid-to-high teens growth in mobility bookings over the next two to three years. Sheridan cited potential with Uber's business in less populated places both domestically and abroad, a sentiment Uber CEO Dara Khosrowshahi expressed during the earnings call.

JMP's Andrew Boone focused his analysis on the existential threat Uber faces from the autonomous vehicle movement, especially as an administration likely to act favorably towards Tesla enters the White House. And although it's still early days for Alphabet's self-driving car company, Waymo, Boone noted it is seeing rapid rider growth. But Sheridan predicted that Uber can achieve success in a hybrid ride sharing industry that incorporates both human and autonomous drivers. Cramer noted that Waymo already has a partnership with Uber that's set to launch in Austin and Atlanta this year.

"Look, the longer-term impacts of Waymo and Tesla's robotaxi aspirations, they're worth of keeping an eye on, absolutely, he said. "But I think a lot of this handwringing about the distant future when we know Uber's prospects look great right now — I'm discounting it."