Uber Stock Faces Regulatory Scrutiny Yet Remains a Top Analyst Pick for 2026

Regulators Target Uber’s Subscription Tactics

In December 2025, Uber Technologies Inc. found itself at the center of a regulatory storm. The Federal Trade Commission (FTC), together with 21 states and Washington, D.C., filed an expanded complaint against Uber, accusing the company of deceptive practices surrounding its Uber One subscription service. According to Benzinga, the allegations are substantial: customers say they were signed up for Uber One without their consent, promised perks like free delivery weren’t always honored, and the cancellation process was so convoluted—requiring navigation through up to 23 screens and 32 separate actions—that it contradicted Uber’s assurance of “cancel anytime.”

This regulatory scrutiny isn’t entirely new for Uber. The FTC had previously sued the company in April for allegedly misleading billing practices. But with the fresh complaint, regulators now seek civil penalties under the Restore Online Shoppers’ Confidence Act and various state consumer protection laws. The stakes are rising, as the suit’s expansion brings more legal firepower and broader consumer protection efforts into play. For Uber, these challenges have immediate market consequences: on the day the complaint was publicized, Uber’s stock dropped 4.34%, closing at $81.42, as reported by Benzinga.

Analyst Optimism Persists Despite Market Turbulence

Yet, even as regulators turn up the heat, some analysts remain bullish about Uber’s prospects. According to a December 15 report from Investopedia, Jefferies named Uber among its top internet stock picks for 2026. The firm’s optimism is grounded in what it calls “peer-leading growth” and “strong fundamentals.” Uber’s stock is up roughly 40% year-to-date, and Jefferies sees the potential for another 40% climb—targeting $120 per share.

What’s fueling this positive outlook? Jefferies points to several growth drivers: robotaxi partnerships poised to redefine urban mobility, expansion into new delivery markets, and deeper engagement with demographic groups that were previously underrepresented among Uber’s customer base. These factors, analysts argue, could help Uber sustain its momentum even as the broader tech sector faces headwinds from concerns over an AI bubble and disappointing earnings from industry giants like Oracle and Broadcom.

Market Volatility and the Bigger Picture

The timing of these developments is striking. The tech sector has been volatile, with many stocks retreating from their highs as investors worry about overvaluation and the sustainability of AI-driven gains. In this environment, picking winners is no easy task. Uber’s ability to outperform the S&P 500 and its industry peers in 2025, as Jefferies notes, is a testament to its resilience—but also a reminder of the risks that come with rapid growth and innovation.

Investor sentiment toward Uber is now a complex blend of optimism and caution. On one hand, Uber’s expansion into robotaxis and new delivery services could open up vast revenue streams and reinforce its position as a leader in tech-enabled transportation. On the other, regulatory actions like the FTC’s lawsuit underscore the real-world challenges of scaling up subscription models and maintaining consumer trust.

For those watching Uber’s trajectory, the next year will be a test of whether the company can balance regulatory compliance with the kind of aggressive growth that excites Wall Street. The outcome could shape not just Uber’s fortunes, but also broader industry norms around subscription transparency and customer rights.

What Investors Should Watch in 2026

As 2026 approaches, the key question for investors is whether Uber can convert its ambitious plans into sustained profitability—without running afoul of regulators. Jefferies’ bullish target of $120 per share suggests confidence in Uber’s long-term strategy, particularly its bets on autonomous vehicles and diversified delivery. But the regulatory risks highlighted by the FTC’s complaint can’t be ignored. If Uber fails to address consumer concerns and regulatory demands, its brand and bottom line could suffer.

For now, Uber remains a company in transition: navigating legal battles, responding to consumer criticism, and doubling down on innovation. Its journey is emblematic of the broader tensions in tech—where the promise of disruption is always tempered by the realities of accountability and public trust.

Assessment: Based on the facts, Uber’s stock is at a crossroads. Regulatory scrutiny over subscription practices poses real risks, but analysts like Jefferies see robust growth potential driven by innovation and market expansion. The next year will be pivotal for Uber, as it must prove that it can deliver on its promises to both investors and consumers while navigating an increasingly complex regulatory landscape.