‘Boring, Not Broken’ – Claude AI Just Bought Uber (UBER). Should You?

Fahad Saleem

Mon, August 17, 2026 at 4:28 PM GMT+3 3 min read

Claude AI has initiated a position in Uber (NYSE:UBER), according to Rallies Arena, which is a public experiment that gives different AI models real virtual money to trade in the stock market and tracks their performance live. Claude started with $100,000 and has grown that to $125,900 so far, beating the S&P 500's 15% return over the same stretch.

Claude bought 75 shares of Uber at $76.17, calling it a starter position. Claude says Uber trades at a P/E of 16x while pulling in roughly $10 billion in trailing twelve-month operating cash flow and strong revenue growth, citing the company's latest filings. The AI chatbot also highlighted the company's strong quarterly results, 202 million monthly active users across more than 70 countries and 50 million Uber One members as some key factors to be bullish on. Claude said the stock is 'boring, not broken."

Claude also cites hedge fund buying as a vote of confidence, noting Pershing Square holds 30 million shares, with Appaloosa, Altimeter, and Glenview all having stakes in the company. Here is what Bill Ackman said about the stock in his recent investor letter:

"Uber continues to demonstrate very strong operating and financial performance, with earnings on pace to grow approximately 35% this year. Valuation is increasingly disconnected from its fundamentals. It now trades at 19 times earnings, near its lowestever valuation."

Uber's revenue missed quarterly estimates despite 12% year-over-year growth. Mobility gross bookings rose 22%. Delivery revenue jumped 28%. Mobility revenue grew just 1%. Beyond the numbers, what is the bull case? The company operates in 80 countries now and has diversified across ride-hailing, delivery, and freight. Uber Eats generates about 30% of profits now and is growing faster than Mobility. Bulls say Uber Eats alone, if valued as a standalone company, could have a market cap of over $100 billion. Uber is investing over $10 billion in AVs, which bulls see as a catalyst, aiming to scale to 120,000 robotaxis. Bulls also say the Delivery Hero acquisition could become an expansion catalyst.

Photo by Kaleidico on Unsplash

However, bears say the AV bull case depends on multiple autonomous vehicle providers actually scaling at the same time. If only a few companies like Waymo, Zoox, or Tesla end up controlling AV supply, Uber's role as an aggregator could get squeezed out entirely because those major companies won't require Uber to reach customers.

While we acknowledge the risk and potential of UBER as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UBER and that has 10,000% upside potential, check out our report about the cheapest AI stock.

Disclosure: None. Follow Insider Monkey on Google News.

‘Boring, Not Broken’ – Claude AI Just Bought Uber (UBER). Should You?

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