UBER Stock Price Uber Technologies Inc Stock Quote U.S.: NYSE

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Further, he wrote, „we continue to see opportunity for Uber to expand within its existing verticals into areas like hailables, shared rides, and grocery delivery.” „Uber is positioned to benefit from the sector growth of retail media with its emerging advertising business, which is margin accretive,” Patterson wrote in the client note. Chief Executive Dara Khosrowshahi said on the company’s last earnings call that the business is on track to exceed a $1 billion sales target for 2024. Analysts will be listening for an update on progress for that business.

1. This observation becomes even more relevant when you consider that Uber boasts 130 million monthly active platform consumers (MAPCs).
2. If Uber’s revenue comes in as analysts expect, the growth rate for the third quarter would be roughly in line with the second quarter at 14%.
3. At the same time, gathering more driver and rider data may increase the firm’s ESG risks around data privacy and security.
4. The Motley Fool has positions in and recommends Grab, JPMorgan Chase, and Uber Technologies.
5. Additionally, Uber has been criticized for various unethical practices, such as ignoring local regulations, some of which were revealed by the leak of the Uber Files between 2013 and 2017 under the leadership of Travis Kalanick.

But Uber recorded its first operating profit earlier this year, powered by cost-cutting and a renewed focus on its two core businesses. Analysts are bullish on the stock, believing Uber can sustain strong revenue growth while keeping costs under control. Uber experienced broad-based growth, with monthly active customers up 13% to 130 million while trips in the quarter rose 24% to 2.12 billion. Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors.

Uber continues to rebound from the depths of the pandemic and also likely benefited from comparisons with the quarter a year ago, when the omicron variant of COVID-19 peaked across much of the world. The Internet – Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% of all 250+ industries. This web3 stocks website is using a security service to protect itself from online attacks. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. In his current role at Kiplinger, Dan writes about equities, fixed income, currencies, commodities, funds, macroeconomics, demographics, real estate, cost of living indexes and more.

As of the time of this article, Uber trades for 2.8 times price to sales (P/S). This budget-friendly alternative permitted drivers to use their cars provided they passed background https://bigbostrade.com/ checks and met insurance, registration and vehicle quality standards. UberX expanded to 35 cities within a few months, demonstrating its popularity among cost-conscious riders.

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While that will drive short-term demand for Uber stock, there is no guarantee that S&P 500 inclusion will lead to a higher valuation in the long term. Uber stock might have plenty of upside potential over the long term, but its inclusion in the S&P 500 might add some zest in the near term. In fact, its stock has already jumped 2.4% since the announcement on Friday. Since Uber has 142 million monthly active customers on its platforms, it will be the go-to network for developers of autonomous vehicles who want to access the largest possible audience. We’d like to share more about how we work and what drives our day-to-day business. We assign Uber a Very High Uncertainty Rating, based on the number of competitors in the market and its network effect.

About Uber Technologies

In August 2014, Uber extended its services by introducing Uber Eats, a food delivery platform. It also unveiled a carpooling feature in the San Francisco Bay Area, which soon spread to other cities globally, enabling passengers to share rides and save on fares. I assume that the company can achieve 20% net margins over the long term, far lower than the 33% to 40% implied by management. Applying a 1.5x price to earnings growth ratio (‘PEG ratio’), I could see UBER trading at 4.5x sales by 2024, equating to a stock price of $101 – far higher than current prices. Clearly, the projected upside hinges strongly on one’s margin assumptions and growth rates.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor. Under new Chief Executive David Risher, Lyft has cut costs and lowered fares in a bid to catch up to Uber. Analysts will be listening for commentary from Uber on whether it has had to adjust prices in response. KeyBanc Capital Markets analyst Justin Patterson last week upgraded Uber stock to a buy rating. The value of shares and ETFs bought through a share dealing account can fall as well as rise, which could mean getting back less than you originally put in. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.

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UBER Bulls Say

„Not just for you to go to work, but to be that travel companion as well.” Dec. 4 was the first trading day after the S&P Dow Jones Indices announced Uber, among other stocks, would be added to the S&P 500. Of the 50 analysts with coverage of the stock, 46 have a buy or buy-equivalent rating, according to FactSet. That’s up slightly from the start of the year, when 41 out of 46 analysts had a buy rating.

Heading into today, shares of the ride-hailing company had gained 8.79% over the past month, outpacing the Computer and Technology sector’s gain of 6.36% and the S&P 500’s gain of 3.36% in that time. Analysts expect Lyft to post adjusted earnings of 15 cents per share on sales of $1.2 billion. While Uber still collects a little more than half its revenue in North America, international markets have powered recent sales growth.

The opportunity seems ripe for UBER to benefit from the non-restaurant food delivery business by attaining revenue from advertising from those platforms. Uber faces intense competition in the United States from Lyft LYFT, which has gained market share. In addition, it remains possible that Lyft out-innovates Uber to emerge as the top ride-hailing provider.