Key Points

• Joby Aviation's business model differs significantly from that of its peers.

• There's reason to believe its vertically integrated strategy will win out.

• The upside potential is significant; provided the certification process goes smoothly, Joby has a big future.

• 10 stocks we like better than Joby Aviation ›

The electric vertical take-off and landing (eVTOL) market is crowded, but that doesn't mean it's a winner-takes-all scenario. Different companies have different business models with varying risks and rewards, and Joby Aviation (NYSE: JOBY) is arguably the one with the most reward and also one that's reducing its risk the most in 2025. Is it enough to make it a stock that could set investors up for life? Here's the lowdown.

What makes Joby Aviation different

It's always interesting to compare competitors across a growth industry, and doing so with Joby's peer Archer Aviation (NYSE: ACHR) makes for a fascinating comparison. The first conclusion is that they have significantly different models. The second is that the nature of their models allows for more than enough room for both in the market, and the third is that Joby Aviation is making real progress in de-risking the elements of its business that are subject to greater market uncertainty.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

In a nutshell, you can think of Joby Aviation as a "go it alone" player in the industry, backed by a heavyweight manufacturing partner in Toyota, as well as other investors such as Uber and Delta Air Lines. Its business model is different from Archer's and the rest of the industry in two key ways:

• Joby Aviation doesn't plan to sell its aircraft and prefers to develop much of its technology in-house, having its own powertrain and electronics manufacturing facility in California.
• As quoted from its Securities and Exchange Commission (SEC) filings, Joby plans to "own and operate our aircraft ourselves, building a vertically integrated transportation company that will deliver transportation services to customers."

Both points are crucial to understanding the investment case.

Joby's in-house development

Archer, along with other eVTOL companies such as Germany's Lilium and the U.K.'s Vertical Aerospace, makes no secret of the fact that it has leading aerospace and automotive companies as partners in providing solutions. The advantage of heavy integration with established partners in developing technology is a simplified and less risky process, which, theoretically, leads to earlier certification.

Image source: Getty Images.

For example, Archer partners with Honeywell for actuators and climate systems, Hexcel for advanced composite materials, Safran for avionics, and Stellantis (also a key investor). Honeywell is a key strategic technology partner of Vertical Aerospace and partners with European aerospace companies GKN and Leonardo.

Lilium partners with GE Aerospace in flight data management and Honeywell (also an investor) for flight control, avionics, and propulsion unit sensors.

As such, Joby's more "go it alone" approach could be deemed more risky. However, it has received significant investment (up to $894 million) from a manufacturing heavyweight, Toyota. Moreover, the Japanese giant is assisting in improving Joby's manufacturing processes and optimizing design.

A vertically integrated transportation company

Here again, Joby is different. It doesn't want to sell its aircraft; instead, it wants to handle the commercialization of transportation services itself. Again, this is a more risky business model, as it implies commercial business expertise in addition to research & development and manufacturing expertise. It's somewhat akin to Boeing or Airbus deciding to operate an airline.

On the other hand, there's a reason why Uber has invested $125 million in Joby so far: the obvious potential to integrate their services. Similarly, Delta Air Lines is investing up to $200 million in Joby to transport passengers to airports. With Delta increasingly focusing on premium travelers and looking to offer experiences that engender loyalty, the Joby tie-in is a significant plus.

Image source: Joby Aviation.

Can Joby Aviation be a life-changing investment?

Given the current trends in the global economy, whereby technology is enabling fundamental shifts in how industrial and transportation companies operate (think Tesla selling direct or Uber not needing to own cars), Joby's business model makes perfect sense and has the potential to create more value for shareholders over the long term.

Meanwhile, while its peers are working with leading aerospace companies, Toyota is a formidable manufacturing entity and partner, and the Toyota Production System is the precursor to all the lean manufacturing practices successfully implemented by GE Aerospace and many others.

There are no guarantees in nascent technology fields such as eVTOL, and diversification is key when investing in growth stocks. Still, Joby Aviation is a strong candidate for an investment that could set you up for life.

Should you invest $1,000 in Joby Aviation right now?

Before you buy stock in Joby Aviation, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Joby Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,063,471!*

Now, it’s worth noting Stock Advisor’s total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 21, 2025

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool recommends Delta Air Lines, GE Aerospace, Hexcel, and Stellantis. The Motley Fool has a disclosure policy.

• Ride-hailing company Uber is releasing a new feature that matches female drivers and riders.
• Pilots will begin in Los Angeles, San Francisco, and Detroit in the coming weeks, Uber said.
• The new safety feature follows the success of female rider preferences in Saudi Arabia in 2019.

I take Uber rides at all hours of day and night, and there have been times when I've had second thoughts about my safety as a woman riding alone. I know I'm not the only one who's felt that way.

Fortunately, Uber seems to be taking note of the plight of women who have places to be. Camiel Irving, Uber's vice president of operations in the US and Canada, wrote on its website on Wednesday that the company will soon release a new safety feature that can connect female riders and drivers if they so choose.

Female riders will see an option called "Women Drivers" when they request trips on demand or book ahead. They can also set a preference to be matched with female drivers in their app settings. Female drivers — who comprised 20% of Uber drivers in 2023 — will also be able to request female passengers by toggling on the "Women Rider Preference" on their app.

Uber said that pilots will begin in Los Angeles, San Francisco, and Detroit in the next few weeks.

The company did not immediately respond to a request for comment from Business Insider. Irving told Bloomberg that cities with a larger number of female drivers will see the feature sooner.

The option will be offered to drivers based on the gender listed on their license, and to riders based on the name and gender specified in the app, Bloomberg reported.

In 2023, competitor Lyft launched Women+ Connect, a feature that matches women and nonbinary drivers with other women and nonbinary riders.

Uber's feature is designed only for those who identify as women and have identifiable female names on the Uber app, Irving told Bloomberg. Irving said the company has had "a couple of conversations" with LGBTQ+ organizations and concluded that offering the feature to the nonbinary population "is not quite the right way to serve" them right now.

Uber first introduced female rider preferences in Saudi Arabia in 2019, following the country's decision to lift its ban on women driving. Since then, Uber said it's expanded the safety feature to 40 countries.

Uber's rates of sexual assault and misconduct cases have steadily dropped. The company's latest safety report notes 2,717 reports of sexual assault and misconduct in 2021 and 2022 — about 0.0001% of total trips taken in that two-year period — down from 0.0002% in 2019 and 2020, and 0.0003% in 2017 and 2018.

But there's a wide gray area between assault and a perfectly uneventful Uber ride. Awkward, uncomfortable, or strange experiences also occur, and the company's latest feature could give both riders and drivers more control over these situations.

"Across the US, women riders and drivers have told us they want the option to be matched with other women on trips," Uber said in a statement on its website. "We've heard them — and now we're introducing new ways to give them even more control over how they ride and drive."

I, for one, will try this out.

Key Points

• Lucid announced a preliminary filing for a reverse stock split.

• Typically, reverse stock splits are done by companies in financial distress.

• Lucid has no immediate threat of being delisted.

• 10 stocks we like better than Lucid Group ›

While all the headlines screamed about Uber Technologies' (NYSE: UBER) partnership with Lucid Motors (NASDAQ: LCID) and Nuro, an autonomous driving technology start-up, and the multimillion-dollar investment between them, there was a separate development that nearly everyone overlooked: a potential reverse stock split.

Let's take a look at what exactly a reverse stock split does, what it doesn't do, and what it means for Lucid investors going forward. Is this a desperate move?

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Fair or foul?

EV maker Lucid announced Thursday that it filed a preliminary proxy statement with the Securities and Exchange Commission (SEC) regarding a special stockholders' meeting to authorize the board of directors to complete a reverse stock split of the company's Class A common stock at a ratio of 1-for-10 (1:10).

Let's break this development down into what it means, and what Lucid hopes to achieve with its potential reverse stock split.

A 1-for-10 reverse stock split simply means Lucid will reduce its outstanding shares by a factor of 10, essentially combining 10 old shares into one new share. The stock price will then be multiplied by 10. In the simplest example, a company with 100 shares with a $1 stock price will reverse split into 10 shares, valued at $10 per share.

It's important to note what this doesn't do, which is change the value of what investors own. While the stock price changes, proportionally to the reduction in the number of shares, the company's market capitalization will remain the same, as will the investors' voting power and position value.

Now to the question on investors' minds: Is this a sign of desperation? Not necessarily, because there are a few reasons that can drive a reverse stock split. It's true that typically a reverse stock split is done by a company in danger of being delisted from major exchanges such as the NYSE or Nasdaq -- both require companies to maintain a minimum share price of $1.00.

If a company's stock price falls below that threshold for 30 consecutive trading days, it receives a deficiency notice and is given a set period to raise its price -- perfect for a reverse stock split. But as we know, Lucid is currently trading at roughly $3.15 per share, and its 52-week low was $1.93 per share. While that's a little close for comfort, especially given the gloomy electric vehicle market currently mitigating tariff impacts, it's not in immediate danger of being delisted.

Lucid's Gravity electric SUV. Image source: Lucid.

There is also potential upside for Lucid's potential reverse stock split, as many companies try to push the price of their stock higher to entice big institutional investors. Many institutional investors and mutual funds have policies against owning positions in a stock with a price below a minimum value -- raising the price could enable more large investors to jump into the company's stock, pushing it higher. This is not what typically happens, but Lucid's goal is to make its stock more attractive to more investors.

What it all means

At the end of the day, the market generally views a reverse stock split negatively. It's often a company in financial distress with a falling stock price and potential to be delisted -- not qualities of a great investment.

Lucid is still burning through tons of cash, it's still slowly accelerating deliveries -- although consistently, as it's turned in seven straight quarters of higher deliveries -- and much of its future hinges on the success of its new electric Gravity SUV and its upcoming midsize platform that will underpin at least three more electric SUVs.

Currently, Lucid has the liquidity to fund operations flawlessly through the second half of 2026, and while the market doesn't tend to favor reverse stock splits, this shouldn't raise many red flags for Lucid investors that they weren't already aware of. Lucid is simply a high-risk, high-reward stock, and big swings in its price are inevitable. Invest accordingly.

Should you invest $1,000 in Lucid Group right now?

Before you buy stock in Lucid Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,056,790!*

Now, it’s worth noting Stock Advisor’s total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool has a disclosure policy.

Key Points

• Amazon’s flexibility is the source of its competitive edge, and the reason it can continue growing indefinitely.

• Uber Technologies is plugged into a major societal shift that could fuel big growth well into the distant future.

• American Express’ business is more -- and more resilient -- than it seems on the surface.

• 10 stocks we like better than Amazon ›

Is your retirement nest egg where it needs to be right now? That is to say, is it big enough at this stage of your life to ensure it will be big enough then?

Most Americans don't think theirs is. Although most people are saving something, as data from The Motley Fool's in-house research arm highlights, only 34% of Americans feel like they're actually on track for the comfortable retirement they're envisioning for themselves. The other 66% fear their golden years are going to be underfunded.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

If you're one of the 66%, although you can't go back in time and change the past, you can change your current growth trajectory by owning more of the right growth stocks. Here's a closer look at three such names that could beef up the returns on your retirement savings.

Amazon

Yes, Amazon (NASDAQ: AMZN) is a frequently recommended trade. It's almost a cliché, in fact. The stock's also one of the market's most reliable long-term performers, with a future that's just as bright as its brilliant past.

Amazon is not only one of the stock market's biggest companies in terms of market cap, it is the top name in North American e-commerce. Numbers from Digital Commerce 360 indicate that Amazon consistently controls roughly 40% of the continent's ever-growing online shopping industry. While its overseas reach isn't nearly as wide, its international arm is now at least reliably operationally profitable as well, thanks to several years of steady growth.

Yet, e-commerce isn't Amazon's breadwinning business. Although it only accounts for about 16% of its total top line, its cloud computing arm, Amazon Web Services, produces on the order of 60% of the company's total earnings. The growth of both types of business has produced consistent double-digit sales growth for years, which is expected to remain firm for least several more.

Image source: Getty Images.

Amazon's peer-beating growth rate could actually last indefinitely for one overarching reason. That's Amazon's ability and willingness to adapt -- or even enter new lines of business -- as merited.

Think about it. This company hasn't always been in the cloud computing business. That arm wasn't launched until 2006. Amazon Prime didn't exist until 2005. Even its most basic e-commerce operation has evolved since its infancy. While the website still looks about the same as it did years ago, it's now being monetized as an advertising medium more so than an e-commerce platform. Amazon collected more than $56 billion worth of high-margin ad revenue from its sellers last year, in exchange for featuring their goods. For perspective, that's more operating profit than its domestic and international e-commerce arms produced on a combined basis.

There's every reason to believe Amazon can and will remain a growth monster well into the distant future.

Uber Technologies

Ride-hailing outfit Uber Technologies (NYSE: UBER) isn't just catching on with consumers. It's tapped into a massive sociocultural shift. That's the fading interest in car ownership in favor of using alternative forms of personal mobility (like ride-hailing).

Data from the Federal Highway Administration puts things in perspective, highlighting how the number of licensed U.S. drivers between the ages of 16 and 19 has fallen from 65% as of 1995 to only about one-third now. That's just part of a much bigger paradigm. More and more people are never getting their license at any age.

Then again, why would they become licensed drivers if they're less and less likely to own a car to drive?

While older drivers remain relatively interested in ownership of a vehicle, data from a recent survey performed by Deloitte indicates that 44% of Americans between the ages of 18 and 34 would be willing to not own their own car. This disinterest is growing as time marches on, pointing not just to changing preferences, but a major societal shift as to what constitutes "normal" mobility options.

Uber Technologies' results have long reflected its role in this shift. Revenue growth in the mid-teens is the norm now, and likely to remain the norm for a long while as individual car ownership continues to decline. An outlook from Straits Research suggests that the worldwide ride-hailing and taxi market is poised to grow at an average annualized pace of more than 11% through 2033, although this pace of progress could last far longer than that.

UBER Revenue (Quarterly) data by YCharts.

The kicker: People are quickly falling in love with the idea of same-day delivery of online purchases too, which Uber now also offers. On a constant-currency basis, Uber's delivery revenue grew 22% to nearly $3.8 billion in the first quarter of this year, and now accounts for a little over 30% of the company's total top line.

American Express

Finally, add American Express (NYSE: AXP) to your list of stocks you can -- and arguably should -- buy and hold for decades in your retirement account.

Ostensibly it's a credit card outfit, in the same vein as Visa and Mastercard. There are certainly plenty of similarities between the three companies. There are also a couple of critical distinguishing factors, however.

Whereas Visa and Mastercard only manage payment networks and charge a modest fee for each purchase they facilitate, American Express manages its own payment network in addition to being the credit card issuer itself. This is no trivial detail, either. This much control of the purchase and payment process means serious operational savings.

Perhaps the more important factor at work here, however, is the fact that American Express isn't as much of a credit card middleman as it is an operator of a perks and rewards program that just so happens to be built around credit cards. Some people are willing to pay up to $695 per year just to be able to access private airport lounges, enjoy discounted hotel stays, and receive credit toward entertainment purchases and ride-hailing services (and more).

This makes American Express cards particularly appealing to a more affluent crowd that's less likely to curtail their spending or fail to make payments when economic headwinds constrict personal budgets. That's a nuance that the company's management wasn't shy about highlighting following April's release of its first-quarter results.

You'll probably never see double-digit growth from American Express. You certainly haven't in the recent or not-so-recent past! You will, however, see persistent revenue and profit growth supporting consistent dividend growth and stock buybacks, which quietly add value in their own often-overlooked way. That's how an investment in this stock has easily beaten the performance of the S&P 500 over the course of the past 30 years, when reinvesting the dividends it's paid since then.

Should you invest $1,000 in Amazon right now?

Before you buy stock in Amazon, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,056,790!*

Now, it’s worth noting Stock Advisor’s total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. American Express is an advertising partner of Motley Fool Money. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Mastercard, Uber Technologies, and Visa. The Motley Fool has a disclosure policy.

Key Points

• At 20 times earnings, investors are likely overlooking Google parent Alphabet's vast potential.

• Autonomous driving could be a game changer for Uber stock.

• Southeast Asian tech conglomerate Sea Limited appears to be following Amazon's path to success.

• 10 stocks we like better than Alphabet ›

Starting off a portfolio with $1,000 may seem overly modest, but it can be a great place to begin. The more challenging task is finding stocks that can turn $1,000 into a significantly larger sum without incurring excessive risk.

Admittedly, investing in individual stocks is not entirely risk-free. Nonetheless, staying with established companies dramatically reduces investor risks, and the undervaluation in these three companies positions investors for gains as they realize more of their growth potential.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

1. Alphabet

One of the more compelling bargains on the market today is Google's parent company, Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG).

Despite being an early pioneer in AI, Alphabet appeared to be caught flat-footed when OpenAI introduced its generative AI-driven version of ChatGPT. The company released Google Gemini soon after, but Google Search remains under threat from competition for the first time in decades.

Also, Alphabet still generates around 74% of its revenue from digital advertising. Since its generative AI directs users to websites less often, it has resulted in fewer opportunities to generate ad-driven income.

Google Cloud now accounts for 14% of the company's revenue. Moreover, its autonomous driving company, Waymo, could become a revenue source as self-driving cars become more prevalent. Alphabet also holds $95 billion in liquidity and generated almost $75 billion in free cash flow over the trailing 12 months, giving the company tremendous resources to compete in other business ventures.

Amid these struggles, Alphabet stock trades for just 21 times earnings. Given its optionality and non-ad revenue sources, its growth is likely not yet complete, meaning it could still experience market-beating growth for years to come.

2. Uber

Investors know Uber Technologies (NYSE: UBER) as the leader in ridesharing and one of the leading delivery companies. The company has established a globally recognized brand in these industries, as well as its freight business.

Although the mobility and delivery segments remain on a long-term growth trajectory, Uber's real future may lie in autonomous vehicles. The company has partnered with autonomous vehicle companies such as Alphabet's Waymo and the General Motors subsidiary Cruise.

Uber provides a platform to arrange rides and bring customers to these companies, allowing its partners to focus on improving autonomous driving and, to a lesser extent, air taxis, such as those being developed by companies like Joby Aviation.

Thanks to that emerging industry, Straits Research believes the autonomous vehicle will take the global ridesharing market to a 21% compound annual growth rate (CAGR) through 2033, reaching a size of $918 billion.

Uber earned $44 billion in revenue in 2024, although it generated just over half of that from ridesharing, suggesting that Uber will likely claim a significant portion of the anticipated growth over the next few years.

A one-time income tax benefit makes its 16 P/E ratio a deceptive valuation measure. Nonetheless, with a 25 forward P/E ratio, Uber could be an excellent choice for both growth and value investors seeking outsize returns.

3. Sea Limited

Sea Limited (NYSE: SE) is not a household name for American investors, as its e-commerce and fintech arms operate primarily in Southeast Asia. However, for those who missed out on Amazon, the tech conglomerate may serve as a second-chance stock.

The company's Shopee segment is the leading e-retailer in Southeast Asia, a region with a population of around 650 million. Since its failed attempts to sell in most of its non-Asian markets, it has taken a page from Amazon's playbook and invested heavily in logistics.

Additionally, fintech giant Monee adds mobile payment options to cash-focused consumers in the developed world, while gaming company Garena had the world's most downloaded mobile game in 2024, Free Fire.

While Monee has remained consistently strong, Shopee's growth has recovered amid its investments in logistics. Furthermore, after several quarters of revenue declines, Garena has recovered amid Free Fire's renewed popularity.

With all three segments in growth mode, Sea Limited's revenue rose 30% year over year in the first quarter of 2025, far above the 5% annual growth in the first quarter of 2023.

This has led to an improved valuation, and while its P/E ratio of 112 may appear pricey, the forward P/E of 40, which is based on predicted growth, arguably makes this stock a bargain. Considering that its $94 billion market cap is a small fraction of Amazon's $2.4 trillion market cap, it appears positioned for considerable growth from current levels.

Should you invest $1,000 in Alphabet right now?

Before you buy stock in Alphabet, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,056,790!*

Now, it’s worth noting Stock Advisor’s total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Will Healy has positions in Sea Limited and Uber Technologies. The Motley Fool has positions in and recommends Alphabet, Amazon, Sea Limited, and Uber Technologies. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.

Key Points

• Uber will take 20,000 Lucid vehicles with driverless technology for a robotaxi service.

• Uber's service will start late next year; a Lucid-Nuro prototype is already in testing.

• Lucid's reverse stock split, if completed, likely won't be well received by the market.

• 10 stocks we like better than Lucid Group ›

Don't look now but Lucid Motors (NASDAQ: LCID) just received another boost of momentum, shooting the stock over 40% higher Thursday. The driving force behind its move higher was blasted across headlines: Uber Technologies (NYSE: UBER) to invest $300 million in Lucid to form robotaxi partnership. The great news for investors is that aside from the phenomenal opportunity it presents, is that it could be the last thing it needs to prove to Wall Street. More on this in a second.

But don't overlook the second announcement Lucid made Thursday regarding a potential reverse stock split. Let's dive into both developments and what they mean for investors.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Show me the money!

Uber is the driving force behind this three-headed monster partnership. The deal calls for a new robotaxi service that will take an industry-leading, software-defined vehicle of Lucid's new Gravity SUV, infuse it with Nuro's level 4 autonomy system, and deliver a robotaxi service using Uber's vast global network and fleet management.

Uber is targeting a fleet of 20,000 or more Lucid vehicles over the next six years, and the first Lucid-Nuro robotaxi prototype is already operating autonomously on a closed circuit course at Nuro's Las Vegas operations.

Lucid, Uber, and Nuro's robotaxi prototype. Image source: Lucid Motors.

This deal is big news for Lucid, and the 20,000 vehicles evenly spread over six years is still massive considering the automaker delivered just under 6,500 vehicles for the first half of 2025 and hopes to deliver roughly 20,000 for the full year after accelerating production for the Gravity SUV as we speak.

But this development goes beyond the vehicle demand, and it goes beyond the liquidity Uber's $300 million investment represents. This could finally prove to Wall Street that Lucid not only has the advanced technology needed to produce high-quality vehicles but demand for its technology from other companies.

Lucid investors should have been insanely jealous when rival EV maker Rivian inked a partnership with Volkswagen to supply the former's technology and software stack for use in Volkswagen vehicles in a deal worth $5.8 billion.

"This investment from Uber further validates Lucid's fully redundant zonal architecture and highly capable platform as ideal for autonomous vehicles, and our industry-leading range and spacious well-appointed interiors, as ideal for ridesharing," said Marc Winterhoff, interim CEO at Lucid, in a press release. "This is the start of our path to extend our innovation and technology leadership into this multi-trillion-dollar market."

Reverse stock split?

Another development that was mostly overlooked thanks to the bombshell Uber and Nuro partnership, perhaps by public relations' design, was that Lucid filed a preliminary proxy statement with the Securities and Exchange Commission (SEC) to enact a special stockholders' meeting to authorize a reverse stock split of the company's class A common stock at a ratio of one-for-ten (1:10).

Essentially, Lucid will consolidate its shares, and investors will receive one new share for every 10 of the old shares, and the price per share will multiply by 10. The value investors own is the same, and Lucid's market capitalization won't change; it'll simply boost the trading price of Lucid shares.

Generally, a reverse stock split is not looked at favorably by the market, and oftentimes it's a company in financial distress, with a falling stock price and in danger of being delisted by a major stock exchange. In this case, with Lucid trading above $3 currently, the company isn't in immediate danger of being delisted as it would need to trade below $1 for 30 consecutive trading days.

For Lucid, this is simply an attempt to make its stock more attractive to large investors that often have a minimum stock price they're allowed to invest in. Many institutional investors and mutual funds have this.

What it all means

Thursday was a very good day for Lucid. It proved it can package its technology for new revenue streams and inked a highly valuable investment worth $300 million from Uber, all while getting its product out in front of more and more consumers. This is exactly the type of deal Lucid investors were hoping for even if it isn't nearly as lucrative as Rivian's joint venture with Volkswagen. Furthermore, while the market generally disapproves of reverse stock splits, Lucid's doesn't appear to raise the typical red flags.

As always, Lucid remains a high-risk, high-reward stock, and it isn't for the faint of heart as big swings such as Thursday's are sure to take place over the next few years.

Should you invest $1,000 in Lucid Group right now?

Before you buy stock in Lucid Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,056,790!*

Now, it’s worth noting Stock Advisor’s total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool has a disclosure policy.

Lucid Group (NASDAQ: LCID) shares skyrocketed 36.2% to close at $3.12 on Thursday, marking one of the electric vehicle (EV) maker's strongest single-day performances of the year. The dramatic surge was fueled by two significant announcements: a major partnership with Uber Technologies (NYSE: UBER) involving a $300 million commitment to deploy 20,000 Lucid Gravity SUVs as robotaxis starting in 2026, and the company's filing for a 1-for-10 reverse stock split aimed at boosting share price and attracting institutional investors.

The stock's performance vastly outpaced broader market indices, with the Nasdaq Composite rising just 0.74% and the S&P 500 gaining 0.54%. Among competitors, Tesla (NASDAQ: TSLA) dipped 0.7% to $319.41, while Rivian (NASDAQ: RIVN) posted a more modest gain of 4.1% to $12.90, highlighting the Lucid-specific nature of today's market reaction.

Trading volume reached an extraordinary 934.5 million shares, nearly seven times the 50-day average of roughly 137.7 million shares. This exceptional volume surge, combined with the stock's significant distance from its 52-week high ($4.43), reflects the market's strong response to Lucid's strategic initiatives. While the robotaxi partnership offers a potential new revenue stream, investors appear to be revaluing the company's prospects in the competitive electric vehicle landscape.

Should you invest $1,000 in Lucid Group right now?

Before you buy stock in Lucid Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $674,281!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,050,415!*

Now, it’s worth noting Stock Advisor’s total average return is 1,058% — a market-crushing outperformance compared to 179% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has positions in and recommends Tesla and Uber Technologies. The Motley Fool has a disclosure policy.

Key Points

• Baidu is joining forces with Uber to deploy its Apollo Go autonomous vehicles worldwide.

• The partnership could represent a significant opportunity for the Chinese tech giant.

• 10 stocks we like better than Baidu ›

Shares of Baidu (NASDAQ: BIDU) charged sharply higher on Tuesday, surging as much as 9%. As of 12:46 p.m. ET, the stock was still up 8.5%.

The catalyst that sent the Chinese tech giant higher was a high-profile partnership for its self-driving car platform.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Baidu.

A foot in the door of a worldwide market

In a joint press release, Baidu revealed that it had joined forces with Uber (NYSE: UBER) to accelerate the deployment of autonomous vehicles worldwide. The pair announced a "multi-year strategic partnership to deploy thousands of Baidu's Apollo Go autonomous vehicles (AVs) on the Uber platform across multiple global markets outside of the U.S. and mainland China." The press release went on to say that the focus would be on "increasing the supply of affordable and reliable ridesharing options."

A partnership of this magnitude could be a huge catalyst for Baidu. Uber is widely recognized as the world's leading ride-hailing and delivery platform. For context, the company facilitated 3 billion rides in the first quarter, with more than 170 million monthly active platform customers. Furthermore, the number of both rides and riders continue to increase at a healthy double-digit clip.

Baidu's Apollo Go fleet already numbers more than 1,000 driverless vehicles globally, earning it the title of the world's leading autonomous ride-hailing service.

The first vehicle deployments of the partnership are expected to occur in Asia and the Middle East later this year. "After launch, if a rider requests a qualifying Uber trip, they may be presented with the option to have their trip fulfilled by a fully driverless Apollo Go autonomous vehicle," according to the press release.

Baidu is often called "the Google of China," and search is the company's core business. Baidu has expanded beyond its original mandate into streaming video, artificial intelligence (AI), cloud services, and more, but its stock has been stuck in neutral in recent years. If the partnership with Uber bears fruit, it could mark the next big thing for Baidu.

Like any company based in China, Baidu carries an element of additional risk. That said, at just 9 times trailing-12-month earnings, the stock is attractively priced given the breadth of the opportunity.

Should you invest $1,000 in Baidu right now?

Before you buy stock in Baidu, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Baidu wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,005,670!*

Now, it’s worth noting Stock Advisor’s total average return is 1,053% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

Danny Vena has positions in Baidu. The Motley Fool has positions in and recommends Baidu and Uber Technologies. The Motley Fool has a disclosure policy.

Tesla (NASDAQ: TSLA) and Uber (NYSE: UBER) are heading in opposite directions as investors favor tangible success over promised technologies.

*Stock prices used were the afternoon prices of July 6, 2025. The video was published on July 8, 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $414,949!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $39,868!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $687,764!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of July 7, 2025

Parkev Tatevosian, CFA has positions in Uber Technologies. The Motley Fool has positions in and recommends Tesla and Uber Technologies. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool

Key Points

• Bill Ackman is a buy-and-hold investor focused on stocks trading below their intrinsic value.

• Ackman has established positions in or continued buying all three of these stocks in 2025.

• All three offer good value in today's market despite the rising stock prices.

Bill Ackman likes to keep his hedge fund, Pershing Square Capital, invested in just a few high-conviction companies. Indeed, it's hard to generate market-beating returns if your investments are spread so thin your portfolio looks pretty similar to the overall stock market. But Ackman and his team hold stock in just 10 publicly traded companies.

Ackman is willing to deploy billions of dollars at once to accumulate shares in his highest-conviction bets, and he likes to hold those stocks for a long time. As such, Pershing Square's monthly investor updates and quarterly disclosures with the SEC can be a great source of investing ideas. And Ackman's three best ideas right now account for more than half of Pershing Square's publicly traded portfolio.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Here are Ackman's top three holdings.

Image source: Getty Images.

1. Uber (19.7% of portfolio)

Ackman accumulated 30.3 million shares of Uber (NYSE: UBER) at the start of 2025 before announcing the new position on X in early February. Pershing Square's first-quarter 13-F filing revealed it was, in fact, Pershing Square's largest position.

That position has only gotten bigger as Uber stock has climbed about 55% since the start of the year, reaching a new all-time high. A large part of that rally came after Ackman announced Pershing Square's position.

But the long-term prospects look good for Uber, too. While some see autonomous vehicles as a threat to Uber's ride-sharing business, it could turn out to be an opportunity for the company. That's because Uber has, by far, the largest customer base for taxi services. It counted 170 million total monthly active users as of the end of the first quarter. And its market share is growing thanks to the network effect and giving users more ways to use its service.

That's an incredible asset that most companies building autonomous vehicles would love to tap into. Alphabet's Waymo, the leading self-driving car company, has already inked several deals with Uber to operate in multiple cities.

In the meantime, Uber is executing on its financial goals. Gross bookings increased 14% last quarter. With improved operating leverage, the company managed to grow earnings before interest, taxes, depreciation, and amortization (EBITDA) 35%. With limited cash expenditures, it managed to produce 66% growth in free cash flow (converting over 100% of EBITDA).

Despite the strong run-up in price, shares of Uber look fairly valued at an enterprise value less than 23 times forward EBITDA estimates as of this writing. Considering management expects EBITDA growth above 30% over the next couple of years, that's a very attractive price.

2. Brookfield (18.4%)

Ackman has built a position in Canadian alternative asset manager Brookfield (NYSE: BN) over the last four quarters. On top of asset management, the company operates businesses across several segments, including real estate, renewable power facilities, and infrastructure. Those cash-flowing businesses give it capital to invest in additional operating businesses.

Brookfield Wealth Solutions, its insurance business, provides additional capital via float for management to invest. That's a strategy Warren Buffett used to grow Berkshire Hathaway, and one Ackman has expressed interest in himself.

Overall, Brookfield has grown distributable earnings per share at an average rate of 19% per year over the past five years. There's no reason to expect that rate to slow significantly over the next few years, as management uses its considerable cash flows from asset management, insurance, and its operating businesses to buy profitable assets while returning additional cash to shareholders through buybacks. Management is targeting $6.33 in earnings per share by 2029, a 16% compound annual growth rate. It grew 30% in the first quarter.

Despite the strong growth expectations, the stock trades for just 19 times trailing earnings per share. That's well below comparable comparable companies and appears to undervalue the growth potential of the business.

3. Howard Hughes Holdings (13.3%)

After a deal to acquire an increased stake in Howard Hughes (NYSE: HHH) through Pershing Square in May, Ackman now serves (once again) as executive chairman for the company's board. Ackman put up $900 million of Pershing Square's cash in exchange for 9 million shares of the stock, giving it a 46.9% economic stake in the company and 40% control of the vote.

The bigger part of the deal is that Ackman is able to take Howard Hughes and transform its existing real estate operations into a diversified holding company a la Berkshire Hathaway. Ackman has said one of his first moves will be to buy or build an insurance business.

In the meantime, Howard Hughes' core business looks undervalued. Management estimated the net asset value of its master planned communities, condos, and operating assets (minus its corporate debt) at about $5.8 billion per share at the end of last year. The $900 million cash infusion from Pershing Square's investment will bring its net asset value even higher, but the company's total market cap sits at just $4 billion as of this writing.

Howard Hughes generates strong operating cash flow through the sale of its plots to homebuilders and rental income from its commercial and multifamily buildings. Since it controls the entire acreage of its master planned communities, it's able to build just enough to meet demand for office buildings and multifamily housing, ensuring strong returns on capital spending. The rest of its cash can go toward new investments, especially now as a diversified holding company.

The new structure does come with some drawbacks, though. Howard Hughes will have to pay Pershing Square $3.75 million every quarter on top of a 0.375% incentive fee for increasing the value of the business above inflation. That said, Howard Hughes opens the door for average investors to put their money to work directly with Ackman and gain access to private deals he might make instead of following along with Pershing Square's public moves. And with the stock trading below management's estimate for net asset value, it may be a good opportunity for investors.

Should you invest $1,000 in Uber Technologies right now?

Before you buy stock in Uber Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Uber Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $976,677!*

Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 30, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Adam Levy has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Berkshire Hathaway, Brookfield, Brookfield Corporation, Howard Hughes, and Uber Technologies. The Motley Fool has a disclosure policy.

Robotaxis are getting a lot of hype, but are they going to be big business? In this video, we dig into a potential trillion-dollar market and the winners that could emerge.

*Stock prices used were end-of-day prices of June 24, 2025. The video was published on July 2, 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $407,818!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $40,330!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $692,914!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of June 30, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet, Lyft, Mobileye Global, and Uber Technologies. The Motley Fool has positions in and recommends Alphabet, Tesla, and Uber Technologies. The Motley Fool recommends Lyft and Mobileye Global. The Motley Fool has a disclosure policy.

Getting investing ideas and inspiration from the most successful money managers on Wall Street isn't a bad approach, but you should still do your due diligence before pressing the buy button. Let's apply that strategy by looking at Pershing Square Capital Management, a hedge fund led by the billionaire Bill Ackman.

A sizable percentage -- 41.6%, to be exact -- of the hedge fund's portfolio is in three companies: Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Uber Technologies (NYSE: UBER), and Chipotle Mexican Grill (NYSE: CMG). Should you consider following Ackman's lead with these stocks? In my view, the answer is a resounding yes for all three.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

Alphabet -- 14% of portfolio

About 14% of Ackman's portfolio is invested in Alphabet, including more than 5.7% in the class A shares that grant its holders voting rights, and nearly 8.3% in the non-voting class C shares. Alphabet was not a great stock to hold in the first half of the year. Even considering market volatility, shares underperformed the broader market by a significant margin.

However, this isn't because the company's financial results aren't strong. It's more likely that the market is pricing in several specific risks Alphabet faces, including the possibility that U.S. regulators will succeed in forcing it to get rid of its Chrome web browser following an antitrust lawsuit.

Still, there are good reasons to be optimistic about Alphabet's future, particularly when you consider its cloud computing and artificial intelligence (AI) businesses. According to Amazon CEO Andy Jassy, both industries are still in their early innings. Alphabet is a leader in both, and should benefit as these markets embark on a journey of significant long-term growth.

The company can also rely on its streaming ambitions with YouTube, one of the most popular platforms around. Furthermore, Alphabet benefits from a wide moat thanks to network effects and switching costs. Even with the antitrust threat, the company looks attractive once we focus on its growth opportunities and consistent earnings and cash flow.

If you're a long-term investor, I think you should seriously consider adding the stock to your portfolio.

Uber Technologies -- 18.5% of portfolio

As of the first quarter, Uber Technologies was Pershing Square Capital Management's largest holding. In fact, the fund opened its position in the ride-hailing specialist during the period, acquiring some 30.3 million shares of the company.

Now is as good a time as any to get on the Uber bandwagon. Over the past couple of years, it has evolved into a profitable company that also generates substantial cash flow. In the first quarter, Uber's revenue grew by a solid 14% year over year to $11.5 billion. Net income was $1.8 billion compared to a net loss of $654 million in the year-ago period, while free cash flow soared by 66% year over year to $2.3 billion.

More important than its recent results, though, are Uber's still-strong prospects, thanks in part to its platform's network effect. More drivers within its ecosystem make it more attractive to clients. Uber may have competition for its services, but its trips and gross bookings far exceed those of its biggest direct challenger, Lyft. That says something about the company's competitive edge.

Uber has substantial long-term prospects. One reason is that younger generations are driving less, which will, over the long run, create a greater need for the kinds of services the company offers. While Uber's stock has performed well this year, it's not too late to get in on the act yet.

Chipotle Mexican Grill -- 9.1% of portfolio

Chipotle comes in at roughly 9% of Pershing Square Capital Management's portfolio. Here's another company that has not performed well in 2025, partly because of the potential impact of tariffs on its financial results. Chipotle imports ingredients for its famous bowls from various places around the world, and President Donald Trump's trade agenda could lead to cost increases for the restaurant chain.

Even beyond that, Chipotle's first-quarter results were not a hit due to weak foot traffic within its stores.

Do these issues justify giving up on the stock? My view is that they don't. Chipotle is a consistently profitable business with strong restaurant-level margins and attractive growth prospects. Economic conditions are likely affecting consumers' decisions to pull away from Chipotle right now, but that won't last forever.

Meanwhile, the company continues to add new locations; it opened 57 restaurants during the first quarter. Chipotle's long-term goal is to get to 7,000 locations in the U.S. and Canada; it currently has 3,800 restaurants worldwide. Its expansion plans in the U.S., Canada, and elsewhere provide significant long-term growth potential.

Chipotle might be struggling right now, but for long-term investors, the recent dip is an excellent opportunity to buy its shares.

Should you invest $1,000 in Uber Technologies right now?

Before you buy stock in Uber Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Uber Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $966,931!*

Now, it’s worth noting Stock Advisor’s total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 23, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.

Prosper Junior Bakiny has positions in Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, Chipotle Mexican Grill, and Uber Technologies. The Motley Fool recommends Lyft and recommends the following options: short June 2025 $55 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.

Shares of ride-hailing giant Uber (NYSE: UBER) traded roughly 7.6% higher as of 11:19 a.m. ET today. The company announced a partnership with Alphabet's Waymo in Atlanta that will allow people to order Waymo rides exclusively through Uber's app.

Autonomous driving is here

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

The partnership comes in the same week that Tesla launched its robotaxi service in Austin, Texas, an event the market also met with enthusiasm. Atlanta is now the second market Uber and Waymo have partnered in. The two companies also forged a partnership in Austin, where there are now more than 100 Waymo vehicles exclusively available through Uber. Waymo trips in Austin have an average rating of 4.9 stars, according to Uber.

Image source: Getty Images.

Riders in Atlanta now have the chance of being paired with an autonomous, full self-driving vehicle at no additional cost, although riders will have the option to switch to a regular human-driven vehicle if they choose.

Riders in Waymo vehicles will also have 24/7 access to customer support through the Uber app and Waymo's in-car screens. The Atlanta launch will start with 65 square miles of Atlanta, from the downtown area to Buckhead to Capitol View, and Uber and Waymo plan to expand in the future.

Uber's autonomous strategy taking shape

Uber has no plans to build its own self-driving cars, but instead plans to partner with major players in the space -- and this strategy seems to be off to a good start. The company's platform, massive fleet, and operational experience makes it an ideal partner for autonomous companies, and presents a potentially large new revenue opportunity for Uber. I think the stock remains a buy.

Should you invest $1,000 in Uber Technologies right now?

Before you buy stock in Uber Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Uber Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $676,023!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $883,692!*

Now, it’s worth noting Stock Advisor’s total average return is 793% — a market-crushing outperformance compared to 173% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 23, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Tesla, and Uber Technologies. The Motley Fool has a disclosure policy.

Are you looking for some new growth stocks now that many of the market's usual favorites -- like Apple and Alphabet -- aren't as compelling as they once were? Don't panic. Great stocks are out there. You just have to dig a bit deeper to find the best ones.

With that as the backdrop, here's a rundown of three brilliant growth stock prospects worth stepping into and sticking with for the long haul. Each one has a business that's built to last indefinitely.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

1. Alibaba

There's the Alibaba Group (NYSE: BABA) you know. That's the Alibaba that owns and operates China's popular e-commerce platforms Tmall and Taobao, and its foreign-facing AliExpress that helps Chinese manufacturers sell to overseas customers. Within its home country, the company enjoys a commanding 40% of the online shopping market, according to wealth management outfit DBS Treasures.

Then there's the Alibaba you don't know. This company also offers cloud computing services, operates a digital entertainment arm, and manages its own logistics/delivery business. It's even working on its own artificial intelligence models meant for consumer and corporate use. Remember the Qwen2.5 model unveiled in January that reportedly performed better than DeepSeek (which had only been revealed a few days earlier as a threat to platforms like OpenAI's ChatGPT)? Alibaba is the developer of Qwen.

All of these business lines are going to be marketable in the near and distant future, even if not explosively so. Alibaba's first-quarter revenue improved to the tune of 7% year over year, more or less matching its long-term top-line growth rate that's likely to remain in place for the indefinite future.

But the tariff standoff between China and the United States that's creating a ripple effect outside of both countries? That's just it. Alibaba isn't particularly vulnerable.

Don't misread the message. Anything that slows China's manufacturing exports ultimately threatens the nation's internal consumerism.

It's not a dire threat, though. More than 80% of this company's revenue is generated domestically. And it's largely understood that Chinese companies are expected to use goods and services offered by other Chinese companies whenever there's a choice. Ditto for their foreign business partners. For instance, although Apple prefers OpenAI's ChatGPT everywhere else, in China, its newest AI-capable iPhones sold in that market will utilize Alibaba's Qwen model.

In other words, Alibaba largely operates in a regional silo. As long as the economy within that silo is growing, Alibaba's dominance of its market means it's growing, too. To this end, the International Monetary Fund believes China's GDP will grow on the order of 4% this year, with comparable growth in the cards beyond that once the tariff dust is almost sure to be settled.

2. Uber Technologies

Shares of ride-hailing company Uber Technologies (NYSE: UBER) have taken investors on a bumpy ride since early last year. Although the stock's made net-bullish progress since then, it's also been up-ended several times during this stretch thanks to sales or earnings shortfalls, or disappointing guidance.

Now take a step back and look at the bigger picture. Uber is plugged into a major secular trend that's not apt to end anytime soon, if ever. That's the growing disinterest in driving -- or even automobile ownership -- and a growing willingness to pay for a ride with someone else in their vehicle.

A recent survey performed by Deloitte indicates that 44% of U.S. residents under the age of 34 would be willing to not own a car and instead rely on alternative transportation now that it's readily available, underscoring a much bigger age-driven shift.

Straits Research believes the global ride-hailing and taxi market is set to grow at a healthy annualized pace of 11.3% through 2033, in fact, largely thanks to this ongoing shift.

Uber Technologies is positioned to capture a significant share of this growth, by virtue of its market leadership here and strong presence in several key markets abroad.

Then there's the other reason Uber stock is a long-term buy sooner than later: robotaxis.

Although the underlying technology isn't quite ready for commercial deployment, as CEO Dara Khosrowshahi recently commented, autonomous/self-driving vehicles are "the single greatest opportunity ahead for Uber."

Although it could take 10 to 20 years for self-driving automobiles to fully displace human drivers, once they do it will remove one of Uber's biggest operating expenses. This will in turn lower prices for riders, making its ride-hailing service even more marketable. In this vein, Straits Research believes the worldwide robotaxi market itself is set to swell at an average annualized pace of nearly 68% through 2031.

3. Arista Networks

Finally, add Arista Networks (NYSE: ANET) to your list of brilliant growth stocks to buy now and hold indefinitely.

If you're familiar with the company, then you already know it competes with the much bigger networking powerhouse Cisco. And to be clear, Cisco keeps Arista in check. Arista Networks is evidence, however, that bigger doesn't always mean better within the world of technology. When it comes to technology, better is better.

The key is Arista's EOS, or extensible operating system. That's just a fancy word for the software that makes its networking hardware function. Like most other software, EOS can be rewritten, modified, and updated as needed to meet the specific and ever-changing needs of its customers. It also means its hardware can remain relevant for longer, ultimately saving its customers money by delaying the need for newer tech.

And yes, its ethernet switches are in use in artificial intelligence data centers all over the world, although it also serves more mundane markets like campus WANs (wide area networks), cybersecurity, and simple data storage, just to name a few. As long as the world continues to be digitized and create more and more digital information to handle, there will be demand for tightly focused solutions providers like Arista.

The company's results say as much. Last year's revenue growth of 15% extends an established trend that's expected to persist for at least the next few years, although it's likely to last well into the distant future.

ANET Revenue (Quarterly) data by YCharts

This doesn't mean the stock has always performed well. Indeed, shares have been subpar performers this year, seemingly on worries that broad economic headwinds would undermine this growth.

Don't sweat this weakness too much, though. Rather, capitalize on it.

This might help. Despite the stock's lackluster performance of late, the analyst community is still on board. The vast majority of them rate this ticker as a strong buy, with a consensus price target of $109 that's roughly 15% above the stock's present price. That's not a bad tailwind to start out a new trade with.

Should you invest $1,000 in Alibaba Group right now?

Before you buy stock in Alibaba Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alibaba Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $883,386!*

Now, it’s worth noting Stock Advisor’s total average return is 992% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. James Brumley has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Apple, Arista Networks, Cisco Systems, and Uber Technologies. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy.

Uber's (NYSE: UBER) path to profitability, growing dominance in mobility and delivery, and big bets on autonomy and advertising could supercharge its future, unless regulation or competition slows it down. In this video, I unpack the upside, the risks, and where Uber stock could be in five years.

*Stock prices used were the after-market prices of June 5, 2025. The video was published on June 7, 2025.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Should you invest $1,000 in Uber Technologies right now?

Before you buy stock in Uber Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Uber Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $888,780!*

Now, it’s worth noting Stock Advisor’s total average return is 999% — a market-crushing outperformance compared to 174% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Jose Najarro has positions in Uber Technologies. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool has a disclosure policy.