Bernstein analysts noted a shift in sentiment around Uber (NYSE:UBER), suggesting that the stock has entered funding short territory. Despite maintaining an Outperform rating and a $95 price target, their analysis points to several factors that contribute to this perception.

Uber's stock has seen a 15% drop since its Valentine's Day Investor Update, raising concerns about risks to the investment thesis. Although the stock has gained 19% year-to-date and 78% over the past year, Bernstein cautions that stock growth isn't always linear.

Bernstein remains optimistic about Uber and sees its recent underperformance as an opportunity. However, they attribute the current sentiment and price action to a few factors, including recent multiple expansions, a less robust catalyst path, and rising concerns about robo-taxi disruption and regulatory challenges.

Despite these challenges, Bernstein sees Uber as a scaled, market-leading platform with improving profitability and strong potential for rapidly compounding free cash flow. They emphasize the benefits of owning industry leaders in sectors driven by network effects, which reinforces their long-term confidence in Uber's potential.