By Uber Technologies (NYSE: UBER) is inching down on Wednesday morning as a wave of protests in Europe signalled growing regulatory headwinds for ride-hailing platforms.
Meanwhile, Morgan Stanley analysts trimmed their price target on UBER shares, making investors wonder whether they’ve indeed gone a bit too far in 2025.
Despite the pullback, Uber stock remains up more than 30% versus the start of this year.
What the protests mean for Uber stock
In Barcelona, more than a thousand taxi drivers staged demonstrations on Dec. 10, blocking central streets to support legislation that could sharply reduce ride‑hailing licenses.
The proposed law would effectively limit UBER’s ability to operate at scale, threatening its market share in one of Europe’s busiest tourist hubs.
Similar anti‑Uber sentiment has surfaced elsewhere: drivers in the “Cotswolds” have demanded a ban on the app, while officials in Halifax are weighing stricter rules to level the playing field for taxi drivers as well.
These developments underscore a recurring challenge for Uber shares – regulatory pushback that lifts compliance costs, restricts growth, and undermines confidence in the company’s international expansion strategy.
Are UBER shares overvalued heading into 2026
Adding to the pressure, Morgan Stanley reduced its price objective on UBER shares to $110 today while keeping an “overweight” rating on the transportation giant.
The adjustment signals analysts continue to see long-term potential but are tempering expectations amid near-term risks.
While their downwardly revised price target still suggests meaningful upside from current levels, technicals and valuations warrant caution in buying the dip in Uber stock today.
At the time of writing, the multinational is trading at nearly 25x forward earnings, which makes it an expensive name relative to peers heading into 2026.
For comparison, even Google, with its AI tailwinds, is going for about 28 at the time of writing.
More importantly, UBER is currently trading decisively below its major moving averages (50-day, 100-day, 200-day) – reinforcing that the broader trend is currently pointing downward.
Is it worth buying the dip in Uber Technologies?
For investors tempted to view the sell‑off as a bargain, caution is also warranted because insiders have predominantly sold UBER shares (not even a single buy transaction recorded) in the trailing 12 months.
This suggests that even those close to the company currently see its risk-reward profile as tilted against near-term buyers – and it’s not like Uber pays a dividend to appear more attractive for the income-focused investors either.
Moreover, while the firm’s management aims to leverage autonomous vehicles to its advantage, it remains unclear whether the technology will ultimately prove beneficial or become a liability for the company.
All in all, therefore, Uber stock’s dip on Dec. 10 is less an opportunity and more a reminder of the structural challenges it faces in 2026.
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