A retired California judge ordered Uber Technologies to pay US$40 million in a wrongful death case tied to its ride hailing service. The ruling puts the company back under legal scrutiny as its shares trade at US$70.87, down 5.08% over the past 30 days and 14.47% year to date, though the 5 year total shareholder return stands at 55.83%. The most followed narrative on Uber Technologies assigns a fair value of $116, implying the stock is 39% undervalued, based on an 8.38% discount rate and assumptions that Uber sustains its current platform strength while absorbing higher investment into autonomous partnerships. That narrative assumes forecast revenue growth of 11.8% a year and expected earnings growth of 11.5% a year, both slower than the broader US market, and notes declining profit margins in the latest year. The thesis could be knocked off course if autonomous partners capture a larger share of trip economics, or if legal liabilities escalate materially from here.
Uber Technologies IncA retired California judge ordered Uber to pay $40 million in a wrongful death case tied to its ride-hailing service, putting it back under legal scrutiny.
