Is Uber a good buy at the current price? Here is why

5일 전

Hello,

Here is our outlook on Uber Technologies.

Uber Technologies, Inc provides a platform that allows users to access transportation and food ordering services. The Company operates through two segments: Core Platform and Other Bets.

The Core Platform segment consists of Ridesharing and Uber Eats. The Other bets segment consists of Uber Freight and New Mobility platforms. Ridesharing refers to products that connects consumers with drivers who provide rides in a variety of vehicles, such as cars, auto rickshaws, motorbikes, minibuses and taxis. Its Uber Eats platform allows consumers to search for and discover local restaurants and order meals through online.

TECHNICAL ANALYSIS- Checklist

• Structure drawing (Trend line drawing on past price chart data)
  
• Patterns identification (Naming patterns on past price chart data for future wave)- A correction forming. Price is at the bottom of the corrective wave.
  
• Future indication (Reading indicator for future wave)- Await zero crossover on MACD
  
• Future wave (Drawing on future price chart using future indication from indicator)- As shown in chart
  
• Future reversal point (Identifying trend reversal point on price chart using structure)- Target at $100 per share
  

Uber Technologies, Inc. financial performance for Q3 2024 and the nine months ended September 30, 2024.

1. Total Revenue: $11,188 million for Q3 2024, $32,019 million for the nine months ended September 30, 2024.
   
2. Income from Operations: $1,061 million for Q3 2024, $2,029 million for the nine months ended September 30, 2024.
   
3. Net Income including Non-Controlling Interests: $2,599 million for Q3 2024, $2,944 million for the nine months ended September 30, 2024.
   
4. Net Income Attributable to Uber Technologies, Inc.: $2,612 million for Q3 2024, $2,973 million for the nine months ended September 30, 2024.
   
5. Basic Net Income per Share Attributable to Uber Technologies, Inc. Common Stockholders: $1.24 for Q3 2024, $1.42 for the nine months ended September 30, 2024.
   
6. Diluted Net Income per Share Attributable to Uber Technologies, Inc. Common Stockholders: $1.20 for Q3 2024, $1.36 for the nine months ended September 30, 2024.
   
7. Revenue from the United States and Canada was $17,304 million, Latin America was $2,068 million, Europe, Middle East, and Africa was $8,939 million, and Asia Pacific was $3,708 million for the nine months ended September 30, 2024.
   
8. Uber announced the pending acquisition of Foodpanda Taiwan from Delivery Hero SE for approximately $950 million in cash, expected to close in the first half of 2025.
   
9. Beginning in early 2025, Waymo and Uber will bring autonomous ride-hailing to Austin and Atlanta, only on the Uber app. In these cities, Uber will manage and dispatch a fleet of Waymo’s fully autonomous, all-electric Jaguar I-PACE vehicles that will grow to hundreds over time.
   

You can find a summary of financial statements here:


Our recommendation

Since February 2024, Uber's stock (UBER) has been undergoing a correction, largely driven by concerns over the rise of robotaxi services potentially eroding the market share of traditional ride-hailing giants like Uber and Lyft. Notably, Waymo—Alphabet's autonomous vehicle division—recently expanded to Miami and now completes over 150,000 self-driving rides per week. Tesla is also set to enter the space with a planned robo-taxi launch in late 2025.

However, Uber is not sitting idle. The company, in collaboration with WeRide, has launched an autonomous mobility service in Abu Dhabi and is targeting fully driverless commercial services by late 2025 in the same region. This demonstrates Uber's proactive strategy to stay competitive in the evolving ride-hailing landscape. Beginning in early 2025, Waymo and Uber will bring autonomous ride-hailing to Austin and Atlanta, only on the Uber app.

The sharp decline in Uber's stock price—down 34% in recent weeks. The MACD indicator is showing that we shall be having a zero crossover soon hence suggesting that selling pressure may be nearing exhaustion, potentially signalling a trend reversal. The stock appears poised to recover and return to a more balanced supply-and-demand dynamic.

Despite current challenges, we expect Uber to remain resilient and successfully navigate market headwinds. The current price level presents a compelling buying opportunity, with a target price of $100.00 offering significant upside potential for investors who act now.

Current price: $60.80

Good luck and best regards.