Wedbush analysts have urged investors to exercise caution as Uber Technologies prepares to report fourth-quarter results on Feb. 4. While current consensus estimates for mobility and delivery gross bookings appear achievable, the firm warns that upside potential is limited by a softening demand environment and persistent macroeconomic uncertainty. Investor sentiment has cooled since Q3, driven by a dearth of near-term catalysts and growing anxiety around autonomous vehicle (AV) deployment risk. Wedbush maintains a Neutral outlook on Uber, citing balanced risk-reward and potential downside in mobility gross bookings despite continued strength in delivery revenue, which accounted for roughly 55% of total bookings in Q3.

Uber and DoorDash recently lost their bid to block New York City’s new tipping regulation, which mandates that food-delivery platforms prompt customers to add a tip of at least 10% during checkout. U.S. District Judge George Daniels declined to enjoin the law, finding that the companies had not demonstrated a likely First Amendment violation. The legislation goes into effect on Jan. 26 and is expected to shift $550 million in additional tips to delivery workers over the next year, according to city regulators. Uber argued the requirement would pressure customers and harm order volumes for local merchants, but the court sided with the city’s view that the rule simply enhances transparency and worker compensation.

In a separate note, a different research house upgraded Uber to a Buy rating, highlighting the company’s durable platform moat and improving profitability metrics. The firm projects that Uber’s adjusted EBITDA margin will expand from 13% in 2023 to 18% by 2026, driven by operational efficiencies in its delivery logistics and growing advertising revenue. It also downplays the near-term threat from robotaxis, forecasting autonomous vehicles to capture only 7.5% of ride-hailing volume by 2030. This upgrade underscores confidence that Uber’s core peer-to-peer mobility and delivery businesses will continue to generate robust free cash flow, even as the company invests in R&D for self-driving technology.