Better High-Growth Stock for 2026: Amazon.com vs. Uber Technologies
2026-09-03 01:28
•Robert Izquierdo •The Motley Fool
•••••••• •••••••• Axe Cap view
Uber vs Amazon: Which High-Growth Tech Play Works for 2026?
Uber’s profit turnaround and valuation edge make it a more compelling bet than Amazon for growth investors eyeing 2026.
Amazon’s sheer scale, driven by its booming AWS cloud division, keeps it firmly on the growth radar. Yet its lofty 24x price-to-earnings ratio suggests much of that growth is already priced in. Uber, by contrast, has quietly swung to profitability with a net margin approaching 20%, while trading at a more reasonable 17x earnings. The ride-hailing giant’s deepening push into autonomous vehicles, leveraging partnerships like Amazon’s Zoox, adds a scalable growth avenue that’s potentially underappreciated by the market. For South African investors, this story leans into tech growth but also reminds us to keep an eye on USD/ZAR — a weaker rand could lift the cost of investing in these US-listed names. On the local market, our JSE tech giants like Naspers and Prosus remain strong proxies for global internet growth but trade at premium multiples with less immediate profitability than Uber. The wildcard is Google’s Waymo pulling back from Uber’s AV collaboration — if Uber’s autonomous ambitions stall, its attractiveness dims. this is just our opinion and not financial advice
We would position selectively in Uber for 2026, capitalizing on its profitability and valuation discount, while holding Naspers/Prosus for diversified tech exposure. Amazon is a trim candidate pending a more attractive entry point.
- UBER
- Naspers
- Prosus
- USD/ZAR
- Potential failure or delays in Uber’s autonomous vehicle rollout
- Stronger USD pushing USD/ZAR higher, increasing investment costs for SA investors
6/10
The article compares Amazon and Uber as high-growth tech investments for 2026. Amazon dominates e-commerce and cloud computing with $716.9B revenue and 10.8% net margin, while Uber has transitioned to profitability with $52B revenue and 19.3% net margin. Both companies are investing in autonomous vehicles, with Amazon's Zoox partnering with Uber's platform. The author recommends Uber as the better buy due to its lower valuation (P/E 17.2x vs 23.9x) and leadership position in global AV ride-hailing, though Amazon remains a solid portfolio addition given AWS's strong 37% YoY growth.
Our take is based on reporting first published by The Motley Fool.