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Investing.com -- Wedbush analysts downgraded Uber Technologies (NYSE:UBER) stock to Neutral from Outperform following the ride-hailing giant’s first-quarter report.

Uber reported first-quarter results that were a mix of hits and misses, with gross bookings of $32.8 billion, a 13.7% increase year-over-year, which landed at the midpoint of management’s guidance but slightly below Street estimates.

The company’s adjusted EBITDA for the quarter was $1.9 billion, with a 16.2% margin, modestly surpassing initial expectations but falling short of the midpoint of the company’s prior outlook.

The ride-hailing giant’s mobility gross bookings growth was relatively modest at 13.5% year-over-year compared to estimates.

Looking ahead to the next quarter, Uber forecasts gross bookings growth to range from 14.5% to 18.3% year-over-year, which is ahead of the consensus estimate of 14.3% year-over-year.

The expected adjusted EBITDA for the upcoming quarter is between $2.02 billion and $2.12 billion, versus Street estimates of $2.04 billion.

Shares of Uber have surged significantly in recent years, driven by the recovery of its business model in the post-pandemic era.

“Notably, in recent periods, the magnitude of beats versus estimates has contracted materially as performance has caught up to investor expectations,” Wedbush analysts led by Scott Devitt said in a note.

The analysts acknowledge Uber’s strong execution under its current management, which has helped drive growth. However, they note that the business is now "well understood and the lack of clear catalysts in the near-term will limit upside to expectations in the current environment, curbing further multiple expansion."

Uber stock is currently trading at approximately 17x Wedbush’s revised 2026 adjusted EBITDA estimate. It commands a premium relative to the mobility group, which may be challenging to maintain if the demand environment weakens, analysts cautioned.

“Given ongoing macro uncertainty and minimal visibility into consumer trends, we recommend investors reduce allocation to companies with greater cyclical exposure,” they concluded.

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