Is Uber Stock Ready for the Mainstream?

Uber Technologies Inc. (NYSE: UBER) had one of the most publicized IPOs of 2019. However, despite initial interest, the stock failed to live up to expectations. As of today, it has a market cap of just $68.68 billion, much lower than what the most bullish analysts would have expected last year. However, it’s starting to look better as a mainstream portfolio option, and it could finally be time for the average investor to consider a stake in this growing company.

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Uber reported its Q4 2019 earnings last week, and the news was positive. The company generated a -$0.64 loss per share, compared to the analyst expectation of -$0.68. Revenue was $4.07 billion, compared to the analyst consensus of $4.06 billion. Total revenue growth was 37% year over year, compared to 30% in the previous quarter. The company believes that it will achieve EBITDA profitability by Q4 2020.

The company’s ride-sharing and ride-hailing businesses are performing well, and Uber has cut costs in less profitable areas. Food deliveries are performing better than expected, with Uber Eats revenue coming in 71% above analyst expectations.

It’s clear from the data that Uber is on the path to profitability. Stock confidence increased this week, reflecting the positivity seen in the latest earnings report. Any investor who has been waiting for an opportunity to buy into ride-hailing and next-gen transportation services should take a closer look at this stock in February.

Key Data:

  • 1 Year Price Growth: N/A
  • YTD Price Growth: 53%
  • 3 Month Price Growth: 42%

UBER 7 Day Growth Chart
Uber Stock Chart

 

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The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

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