Since going public in May 2019 Above (NYSE:UBER) has taken its investors on a bumpy ride. The first nine months of this year were up, but as of this writing shares are trading 28% below their all-time high set in October.

Does this power drop do that? Transport-as-a-Service inventory an incredible buying opportunity before the end of 2024? Here’s what investors need to know.

There have been some key Uber-related developments over the past few months, with the stock facing downward pressure. On October 10th Tesla hosted its highly anticipated Robotaxi event, where founder and CEO Elon Musk said the company could bring unattended driving to Texas and California next year. Uber shares rose sharply the next day, but ended October down 17% from the day after the Tesla event.

The negative sentiment continued even after Uber released its third-quarter 2024 financial results. Better-than-expected figures were reported for the three-month period ended September 30. In fact, the company beat analysts’ expectations, posting revenue of $11.2 billion and earnings per share of $1.20.

However, the stock fell 9% following the announcement. The market may have been disappointed by a weaker gross booking forecast.

Regardless of what the stock’s performance shows over the past few months, investors should look beyond perspective and focus on the bigger picture. This is the smart approach if you want to make long-term investments.

Uber has some positive attributes that work in its favor. For starters, it possesses powerful Network effects. In mobility, Uber processed nearly 2.9 billion rides with a booking value of $21 billion in the last three months. This was achieved by 161 million monthly active users. These numbers are incredible.

The more riders use the Uber app to get somewhere, the more valuable it becomes to drivers. The opposite is also true. As a result, the value that everyone involved increases as the platform grows larger.

These network effects have had a positive impact on Uber’s competitive positioning. However, if fully autonomous driving features eventually become mainstream, it could deal a blow to Uber’s entire business model. The companies that own the software, like Tesla or alphabet‘S Waymocould launch their own ride-sharing apps for the masses bypassing Uber. No matter what you think about the future of this technology, Uber bulls need to be aware of this threat.

Nonetheless, it helps that Uber is posting excellent profitability, clear evidence that the company has achieved a certain level of scale that allows it to better utilize its core costs such as product development and sales and marketing. Third-quarter operating income rose 169% year-over-year to $1.1 billion.

The story continues