Motley Fool Money: Uber Hits Gas on Autonomous Vehicles Release Date: May 7, 2025

In the May 7, 2025 episode of Motley Fool Money, host Mary Long, alongside guest analyst David Meyer, delves into the latest developments surrounding two industry giants: Disney and Uber. The conversation navigates through Disney's impressive performance in both theme parks and streaming services, contrasting it with Uber's ambitious strides toward autonomous vehicle technology amidst mixed financial results.

Disney's Robust Growth in Theme Parks and Streaming Services

Mary Long initiates the discussion by spotlighting Disney's surprising 11% stock surge following their latest earnings report. Contrary to prevailing financial media sentiments forecasting economic caution, Disney's parks and streaming divisions have exhibited robust growth.

Mary Long [00:22]: "...shares of the company were up almost 11% last I checked this morning as they reported fast, faster than expected growth, particularly in its parks and streaming business."

David Meyer attributes Disney's theme park success to meticulous trip planning and strategic pricing. He emphasizes that the surge in domestic park attendance—specifically in California and Florida—can be linked to high consumer confidence and the willingness to spend more for enhanced experiences.

David Meyer [01:28]: "I think that's probably two big reasons. One, planning trips in 2024 to take early in 2025. ... People have time off, they want to get away. There's spring break... combine more, a little more volume and a little more pricing."

Meyer also touches upon the varying performance between domestic and international resorts, noting a dip in attendance at Shanghai and Hong Kong parks but reaffirming the strength of the domestic segment.

Transitioning to Disney's streaming arm, Mary Long highlights a sharp turnaround—from a loss of $138 million a year ago to a profit of $293 million this quarter—driven by price increases and modest subscriber growth.

Mary Long [03:39]: "Disney's streaming business was also another bright spot in this report...post pretty, you know, modest subscriber growth, up two and a half million subscribers across Disney and Hulu."

Meyer remains optimistic about the sustainability of Disney's streaming profitability. As a Hulu Plus and Disney Plus subscriber himself, he praises the continually improving user experience, especially in sports broadcasting, which he believes will retain and attract subscribers.

David Meyer [04:19]: "What Disney knows how to do is to create an experience. ... streaming experience keeps getting better and better and better."

He speculates that while the direct synergy between streaming and the parks might be limited, Disney's history of integrating its diverse properties could unveil unique collaborative opportunities in the future.

Uber's Ambitious Push Toward Autonomous Vehicles Amid Mixed Financial Performance

Shifting focus, Mary Long contrasts Disney's upward trajectory with Uber's more turbulent path. Despite a commendable quarter boasting a 14% increase in monthly active users and a significant turnaround to a net income of $1.78 billion from a previous loss, Uber's stock took a hit after narrowly missing revenue expectations.

Mary Long [07:01]: "Uber missed the Street's revenue expectations by just a hair... what is not to like?"

Meyer explains that the slight revenue miss stems from uncertainties regarding future bookings and investor concerns about the sustainability of growth strategies.

David Meyer [07:45]: "Maybe the investment community can get a little worried if, you know, why are you saying bookings are coming down?... can turn sentiment negative for a day."

Nonetheless, he acknowledges the positive metrics, emphasizing the impressive user and trip growth numbers.

International Expansion in Food Delivery

Mary Long brings attention to Uber's strategic acquisition of an 85% stake in Trendy You'll Go, an Istanbul-based food delivery service. This move aligns with industry trends, as competitors like DoorDash expand globally by acquiring companies like Deliveroo to bolster their presence beyond the U.S.

Mary Long [08:42]: "...both companies are expanding their food delivery services beyond the U.S... is this just a battle of who can get to the most lucrative places first?"

Meyer views these acquisitions as incremental steps to secure strategic markets, noting the complexity of entering regions dominated by established local players. He asserts confidence in Uber's calculated investment decisions, emphasizing the importance of post-acquisition performance and management insights.

David Meyer [09:35]: "I think the thing to do though is to look and see post any acquisition. How do the incremental numbers fare and what is management's comments about the market that they just entered?"

Autonomous Vehicles: Uber's Future Focus

The conversation culminates with Mary Long highlighting CEO Dara Khashrowshahi's assertion that autonomous vehicle technology represents Uber's "single greatest opportunity." This strategic pivot positions Uber to revolutionize its ride-sharing model.

Mary Long [11:21]: "CEO Dara Khashrowshahi calling out that he's confident that autonomous vehicle technology is the single greatest opportunity ahead for Uber."

Meyer expresses cautious optimism. He acknowledges the technological and regulatory hurdles yet agrees with Uber's long-term vision. He discusses the adoption curve of autonomous vehicles, noting early enthusiasts paving the way for broader acceptance. Additionally, he points out the potential cost efficiencies and increased utilization that a driverless fleet could offer.

David Meyer [11:56]: "There is a very intriguing statement... If I offer me a $5 off coupon or something like that, I'd be more than willing to try it... autonomous fleet... opportunity for incremental growth."

Meyer contrasts Uber's growth prospects with Disney's, suggesting that Uber's ventures into autonomous technology may unlock more substantial long-term growth potential.

David Meyer [14:50]: "From I think Uber probably has the bigger growth possibility ahead of it, given once I have a fleet that's established and if I can make it even better by having it be robotic or autonomous..."

Conclusion

The episode concludes with Mary Long summarizing the insightful discussions, emphasizing the contrasting trajectories of Disney and Uber. While Disney capitalizes on its established strengths in theme parks and streaming, Uber navigates the challenges of revenue expectations and international expansions to pioneer in autonomous vehicle technology.

Mary Long [30:16]: "So don't buy or sell stocks based solely on what you hear... The Motley Fool only picks products that it'd personally recommend to friends like you."

Listeners are left with a nuanced understanding of both companies' strategic moves, financial health, and future prospects, empowering them to make informed investment decisions.

Note: All timestamps refer to the podcast's provided transcript.