Best Stock to Buy Right Now: Uber vs. Archer Aviation

Uber's stock has rallied approximately 50% since early 2025, significantly outperforming Archer Aviation, which saw a 25% decline, due to Uber's robust post-pandemic growth across active users, trips, and bookings, coupled with market share gains and operational streamlining. Analysts project continued strong revenue and EBITDA growth for Uber, which trades at a reasonable valuation. Conversely, eVTOL developer Archer, despite a $6 billion backlog and anticipated FAA approval this year, currently generates no meaningful revenue, is expected to remain unprofitable, and carries a high valuation relative to its speculative 2027 revenue projections, positioning Uber as the more secure investment.

Analysis

Uber's stock has rallied 50% since early 2025, significantly outperforming Archer Aviation's 25% decline, reflecting its robust post-pandemic recovery. Monthly active platform consumers (MAPCs) soared from 93 million to 171 million (2020-2024), with gross bookings nearly tripling to $162.8 billion. In the first nine months of 2025, MAPCs grew 17% year-over-year to 189 million and total revenue climbed 18% to $37.7 billion, driven by market share gains and the 36-million-subscriber Uber One platform. Analysts project 16% revenue and 27% adjusted EBITDA CAGR for Uber from 2024-2027, with the stock reasonably valued at 3x next year's sales and 17x adjusted EBITDA.

Archer Aviation, an eVTOL developer, has generated no meaningful revenue since its 2021 SPAC merger, despite a $6 billion backlog and anticipated FAA approval this year. Analysts expect revenue to reach $442 million by 2027, but EBITDA is projected to remain negative with widening net losses. Archer faces intense competition from Joby Aviation, which offers superior aircraft specifications.

Its current $4.3 billion enterprise value implies a valuation of 10 times its "best-case scenario" 2027 sales, suggesting limited upside given its early-stage, high-risk profile. Uber's established profitability and clear growth trajectory, coupled with its indirect eVTOL exposure via Joby, position it as a more secure investment compared to Archer's speculative market entry.

Key Decisions for Investors

• Investors should consider Uber a more stable growth investment due to its established profitability, strong user growth, and reasonable valuation, especially given its indirect exposure to the eVTOL market through Joby.
• For Archer Aviation, investors should view it as a highly speculative play on the nascent eVTOL market, requiring close monitoring of FAA approvals, production ramp-up, and competitive dynamics.
• Prudent investors may consider reallocating capital from speculative early-stage eVTOL plays like Archer towards more fundamentally sound, growing companies like Uber, which offers a clearer path to returns.