Uber Stock Drops 6.4% This Week After Earnings Miss and Robotaxi Expansion

Uber Technologies (NYSE:UBER | UBER Price Prediction) stock slid 6.41% this week, closing at $69.98 on Friday. That’s sharper than the 1.29% decline in the SPDR S&P 500 ETF, extending a brutal start to 2026. Year to date, Uber is down 14.36% while the broader market sits flat.

Let’s dive into three storylines that shaped the week.

The Earnings Miss That Started It All

The sell-off began on February 4, when Uber reported Q4 2025 earnings that shocked investors. The company posted adjusted EPS of $0.71, missing the $0.7788 consensus.

This broke a seven-quarter streak of beats and marked the worst surprise since Q1 2024. Revenue of $14.37 billion came in light, though the company delivered 20% year-over-year growth.

Arete Research lowered its price target from $125 to $120, and Citigroup trimmed its target as well. The consensus now sits at $105.26, implying 50% upside from current levels but down from prior expectations.

Here’s the bottom line: 30 days ago, Wall Street expected Uber to deliver $4.15 in adjusted EPS in 2026. That number is now $3.30. That’s the key reason why shares have fallen so much this year. Expectations for Uber’s profitability this year have dropped dramatically. 

The Legal Verdict That Rattled Investors

On February 13, a federal jury in Arizona ordered Uber to pay $8.5 million to a woman sexually assaulted by a driver. This was the first bellwether trial in multidistrict litigation concerning driver assaults. While Uber called it a partial victory, the specific jury findings are expected to significantly benefit plaintiffs’ leverage in thousands of remaining cases.

Reddit sentiment turned sharply bearish early in the week, with the post “Uber found liable in sex assault case” gaining 315 upvotes and 41 comments by Sunday, February 8. Sentiment scores dropped to the 28-38 range. The case raises questions about liability exposure for gig-economy platforms using contractor models.

The Autonomous Vehicle Expansion That Offers Hope

Amid the negativity, Uber advanced its autonomous vehicle strategy. On February 12-13, the company launched a robotaxi service in downtown Abu Dhabi with WeRide, covering roughly 70% of the city’s core areas. The fleet has quadrupled in size since December 2024, and the partnership commits to deploying at least 1,200 robotaxis across Abu Dhabi, Dubai, and Riyadh by 2027. Passengers order through the Uber app, though safety operators remain in vehicles.

CEO Dara Khosrowshahi framed this as central to the company’s future: “We enter 2026 with a rapidly growing topline, significant cash flow, and a clear path to becoming the largest facilitator of AV trips in the world.” The autonomous push could eventually improve margins if Uber can reduce driver costs, but it requires massive upfront investment. That tension between current profitability and future positioning explains why the stock trades at 15x trailing earnings despite growth that would typically command a premium.

The week encapsulates Uber’s challenge: balancing near-term execution against long-term transformation while managing legacy risks. The stock now trades 30% below its 52-week high as investors weigh the autonomous strategy against earnings estimates for 2026 and 2027 that continue to decline.