Uber Stock Price UBER Stock Quote, News, and History
In what appears to be a case of “buy the rumor, sell the news,” Uber Technologies (UBER) stock languished in its Monday debut as a component of the S&P 500 even as the market enjoyed broad-based gains. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer. Uber was founded in 2009 by Oscar Salazar Gaitan, Travis Kalanick and Garrett Camp and was initially named Ubercab Inc. The idea for Uber came about after Camp and Kalanick spent a pricey $800 hiring a private driver on New Year’s Eve, and Camp needed help finding a taxi on a snowy night in Paris.
Is Uber Technologies Stock a Buy Now?
2,159 employees have rated Uber Technologies Chief Executive Officer Dara Khosrowshahi on Glassdoor.com. Dara Khosrowshahi has an approval rating of 83% among the company’s employees. The company is scheduled to release its next quarterly earnings announcement on Wednesday, May 8th 2024.
Sales & Book Value
When a company buys back its own stock, it typically retires those shares, reducing the total number of shares outstanding. This means that any earnings generated are divided by a smaller number of shares, which has the effect of boosting the amount of profit per share. Uber published a press release before the market opened this morning announcing that it would be buying back stock for the first time in its history. The announcement said that the company’s board of directors had authorized up to $7 billion in share repurchases. The rating analyzes price and volume changes in a stock over the past 13 weeks of trading.
Should I invest?
For the first quarter, Lyft expects bookings to come in between $3.5 billion and $3.6 billion, beating Wall Street’s previous call for bookings of $3.46 billion. Rather than signaling a threat to Uber, the guidance indicates that the ride-hailing space is looking healthier than previously thought. Compared to the Zacks Consensus Estimate of $9.75 billion, the reported revenues represent a surprise of +1.94%. Uber Technologies (UBER Quick QuoteUBER – Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Analyst rating
I believe it could return to its IPO price and head even higher once a new bull market starts, so it could be a great contrarian buy right now. With an enterprise value of $69 billion, Uber still looks surprisingly cheap at less than 2 times this year’s sales and 22 times its adjusted EBITDA. Lyft might seem like an even cheaper ride-hailing play at less than 1 time this year’s sales and 12 times its adjusted EBITDA, but it faces much tougher near-term headwinds than Uber. Uber stock added 150% for the year-to-date through December 18, vs a gain of 24% for the broader market.
- The service was 35 per cent less expensive than original black cars and allowed anyone with a car and a licence to become a company’s freelance driver.
- Uber Technologies’ stock is owned by many different institutional and retail investors.
- Revenue rose 29% to $8.8 billion and exceeded analysts’ expectations by $90 million.
- When earnings estimates for a company go up, the fair value for its stock goes up as well.
- “We expect both businesses to perform strongly in Q and in 2024, as ridership has now rebounded to pre-pandemic levels.”
Investors who bought $1,000 worth of Uber’s shares at the IPO in May 2019 would now be looking at an investment worth $1,843. Delivery is the next division of UBER which is seeing considerable growth and could prove to be the next leg of expansion for the company. Delivery Gross Bookings saw a growth of 50 percent year on year with it achieving almost a breakeven in terms of adjusted EBITDA (-$12m). As always, though, remember that past performance doesn’t guarantee future results.
After starting trading at $45 per share, Uber stock dropped like a rock to $41.70, suffering the largest first-day loss in U.S. history. The news got worse from there, with Uber reporting a $5 billion loss and slowest-ever revenue growth only three months later. When the ridesharing king began offering Uber stock in 2019, its initial public offering (IPO) was expected to be one of the hottest new investments in the stock market, valued at as much as $120 billion. Uber expects gross bookings to rise 13%-17% year over year (and 18%-22% in constant-currency terms) in the second quarter. That outlook implies growth will cool off slightly and the company will face tougher currency headwinds. However, its take rate — or the percentage of each booking it retains as revenue — continues to rise sequentially and year over year across both its mobility and delivery divisions.
On the stock market today, Uber shares were trading up by a fraction at 47.81. In addition, Uber announced its first ever share repurchase program of up to $7 billion of its common stock authorized by its Board of Directors. Uber plans to continue to partner with Aurora to https://forex-reviews.org/fp-markets/ effectively leverage its own network during the transition to autonomous vehicle technologies. The Edge believes if successfully launched it would not require UBER to pay drivers and would equalize its gross and net revenues, adding to the bottom-line growth tremendously.
Investing in Uber stocks began at $45 per share and the initial market cap of $75.5 billion. By the end of the first day UBER stocks performance dropped to $41.57, bringing the IPO investors a cumulative loss of $655 million. Also, the company provided an updated financial outlook for the coming years.
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company’s earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
The large-cap fund owned almost 25.2 million shares of the ridesharing giant, only about 0.3% of its total portfolio. Uber said last year that it would accept more payment options on its food delivery platform and roll out an artificial intelligence (AI)-powered assistant to help users find deals. Revenue for Uber Eats food delivery service, grew 64 per cent year over year, reaching $645 million. Uber Freight service grew 78 per cent year over year, coming to $218 million for the quarter.
A dividend is possible in the future, although share buybacks will likely be the company’s preferred vehicle for driving shareholder value in the short term. Those headline numbers support the bullish thesis for Uber, but should investors chase its post-earnings rally? Let’s decide by reviewing the finer details of the company’s first-quarter earnings report, its near-term challenges, and its valuation. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) surged 353% to $761 million, marking Uber’s seventh-consecutive quarter of profitability on an adjusted EBITDA basis. On a generally accepted accounting principles (GAAP) basis, the company also narrowed its net loss from $5.9 billion to $157 million, or $0.08 per share, which cleared the consensus forecast by $0.01.
There are currently 2 hold ratings and 29 buy ratings for the stock. The consensus among Wall Street research analysts is that investors should “moderate buy” UBER shares. This budget-friendly alternative permitted drivers to use their cars provided they passed background 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. In August 2014, Uber extended its services by introducing Uber Eats, a food delivery platform.
The Zacks Consensus Estimate has changed +0.3% over the last 30 days. It is now a company valued at a $71 billion market cap with a workforce of 26,900 employees in over 785 metropolitan areas and 85 countries worldwide. Khosrowshahi has his sights firmly set on taking Uber to new heights in 2022, and The Edge has predicted this unicorn may have previously been a failure but have changed opinion thanks to the CEO’s belief in the company’s future plans. Things are looking up for Uber as its global takeover shows no signs of slowing down. Khosrowshahi has teamed up with Mark Zuckerberg in a partnership that will lead to billions for investors. Meta (the new name for Facebook’s empire) began rolling out a trial partnership with WhatsApp in India and if the rollout is successful, it will go global leading to greater revenue in 2022.
Selesky adds that Uber reported 21% growth in gross bookings in its most recent quarter, while trip frequency rose by 25%. Uber also posted “solid” free cash flow of $905 million, the analyst notes. “Uber is the largest company in the ridesharing industry, and the second-largest player in food delivery,” writes Argus Research analyst Bill Selesky, who rates UBER at Buy.
The stock continued to head lower from there and reached a pandemic market collapse of just below $14 on March 18, 2020, 70 percent below where it persuaded investors it was a good bet. They would be forgiven for exiting, the outlook was not looking good. Despite the controversies, Uber has committed to carbon neutrality globally by 2040, and by 2030, in most countries, rides will move exclusively to electric vehicles.
In the same year, Uber also bought Geometric Intelligence, the cornerstone of “Uber AI,” a department dedicated to exploring and researching AI technologies and machine learning. Uber management has turned the company into a self-sustaining business with solid cash flow. 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. Shares of a ride-sharing company are listed and traded on the New York Stock Exchange under the ticker abbreviation UBER. Uber’s shares are somewhat volatile and over the last year have had 7 moves greater than 5%. But moves this big are very rare even for Uber and that is indicating to us that this news had a significant impact on the market’s perception of the business.
Because it’s a private company, it’s off-limits to most investors. According to ETF.com, 243 funds held 135.7 million shares of Uber in early 2024. Transportation ETF (IYT -1.49%) had 2.19 million shares of its holdings in Uber stock. The 14.65% weighting of its Uber stock was the most of any fund tracked by the site.
It expects gross bookings growth in the mid to high teens over the next three years. In addition, adjusted EBITDA is expected to accelerate at more than two times gross bookings growth (in the high 30s to 40% (CAGR)). Lastly, free cash flow is projected at over 90% of adjusted EBITDA annually over the three-year period.
As the energy, transportation, and food and beverage sectors go, so goes Uber. Although a slump in one sector isn’t fatal, a broader economic downturn or recovery that turns Luno exchange review anemic could lead to a bumpy road for the ridesharing leader. From a purely numerical standpoint, the SPDR S&P 500 ETF Trust (SPY 1.06%) held the most Uber stock.
Uber Technologies Inc. is a San Francisco-based company providing mobility, food and package delivery services and freight transport. The company sets fares based on local supply and demand at the time of booking and receives a commission from each booking. The company has 131 million monthly active users and 5.4 million active drivers and couriers worldwide. Considered a corporate anomaly with exponential business growth but huge losses all while enduring a series of ethical and legal scandals, Uber attracts traders and investors as a liquid stock with a big potential for volatility. When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right.
The opportunity seems ripe for UBER to benefit from the non-restaurant food delivery business by attaining revenue from advertising from those platforms. Although relatively new to the brand-name-as-a-generic concept, ridesharing company Uber (UBER -0.3%) founded in 2009 has already disrupted the transportation and food delivery markets and continues to expand. This article will explore the ins and outs of Uber — its history, its performance, and, of course, how to invest in its stock. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Uber is rated Zacks Rank #1 (Strong Buy). Sweden’s Klarna on Wednesday partnered with Uber Technologies UBER to offer its payment services across the company’s ridesharing and food delivery platforms in a few markets, including the United States. Uber share price history started in May 2019 when Uber finally went public.
It would not require sharing any money with the drivers for any trip using the autonomously driving vehicle, adding to its cash coffers. The turnaround in the environment and the subsequent vaccine-led rally (which has helped the market including UBER) is still keeping investors underwater on their purchase, but https://forexbroker-listing.com/ now might be the time to load up. In Uber’s case, the company needs to keep an eye on variables like gas prices, increasing food costs slowing restaurant traffic, and legal issues, including lawsuits and increased regulatory oversight. Make sure you consider the risks and rewards before you buy Uber stock.
As recently as the end of November 2021, UBER was ordered by the Belgium court to shut its operations in Brussels and most of Belgium. In other cases, Europe’s top court in 2017 had ruled that UBER was to be treated as a transport service provider, thus it had to follow local taxi regulations. In the UK, UBER was forced to recognize drivers as workers, and therefore had to give drivers some benefits such as holiday pay.
Of the 48 analysts issuing opinions on Uber stock surveyed by S&P Global Market Intelligence, 32 rate it at Strong Buy, 14 say Buy and two call it a Hold. Analysts forecast Uber to generate average annual earnings per share (EPS) growth of 68% over the next three to five years. In April 2019 Uber officially filed papers to go public on the New York Stock Exchange under the ticker symbol UBER. In May it offered 180 million shares at $45 each – the biggest IPO of the year.
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