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Huge News for Uber Stock Investors as it Makes Multibillion Dollar Acquisition

Parkev Tatevosian, CFA•Oct 8, 2026

Summary

Parkev examines Uber's recent announcement to acquire ezCater for $2.3 billion in an all-cash transaction. Parkev highlights that the choice to use cash instead of equity is a critical signal that Uber's management views its own stock as undervalued. Parkev explains that companies often use their own shares for acquisitions when they feel their valuation is peaked, but Uber’s refusal to dilute shareholders further suggests they see significant upside in the current stock price. Parkev also discusses how this acquisition fits into Uber's broader strategy of scaling its delivery business to mitigate potential disruptions from driverless technology.

Parkev provides a breakdown of the following stocks:

Uber (UBER): Parkev states that Uber's acquisition of ezCater for $2.3 billion is a smart strategic move despite a potential slight overpayment relative to gross bookings. Parkev notes that ezCater's average order value of over $400 is roughly ten times higher than typical Uber orders, which significantly improves transaction profitability. Parkev maintains a strong bullish outlook on Uber, estimating its fair value at $115 per share while the current market price is around $69.
SpaceX (Private): Parkev mentions SpaceX as a comparison regarding acquisition strategies and valuation management. Parkev suggests that SpaceX likely used its own equity to fund the acquisition of Cursor because the management understood their valuation was extremely expensive at the time. Parkev argues that this contrast highlights why Uber's decision to use cash for ezCater is a sign of confidence in Uber's own valuation.
ezCater (Acquired by UBER): Parkev explains that ezCater generated over $2.5 billion in gross bookings over the last 12 months with growth in the high teens. Parkev mentions that while the acquisition price was nearly 1:1 in terms of price-to-bookings, the high average order value justifies the premium. Parkev believes ezCater helps Uber build scale and profitability in the workplace catering segment.

Mentioned Stocks

UBER
Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev considers Uber one of the best stocks to buy now, citing a massive disconnect between its current market price of $69 and Parkev's fair value estimate of $115. Parkev views the ezCater acquisition as a positive sign because management chose to use cash rather than equity, signaling the stock is undervalued. Furthermore, Parkev notes that ezCater's high average order value (>$400) and strategic fit as a hedge against autonomous driving risks strengthen the long-term bull case.

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