Investors believe that Donald Trump’s Liberation Day tariff will have no impact on Uber stock. The stock was at $72.75, 16% lower than its peak in 2024. Is Uber stock a great investment?
Uber will not be affected by Trump’s tariffs
Donald Trump’s activities have been the biggest trend in this year’s stock market. The president declared last week that he will impose a 25% tax on imported cars to the United States. The announcement will likely lead to an increase in auto prices across the US.
Trump declared that April 2, 2019 was his Liberation Day , when he applied reciprocal tariffs to goods imported from other countries. Other countries will most likely retaliate against these tariffs, such as China and the European Union.
These issues will affect many companies. Automakers such as Stellantis General Motors and Porsche are the most vulnerable.
Apple, NVIDIA and other American technology companies may also be put at risk by retaliation of other countries.
Uber is a ride-hailing company and a delivery service. It will not likely be affected. The company should benefit from the rise in auto prices as a result of the new tariffs.
Many people will choose to ride hail instead of buying a vehicle because the price is higher. Uber could also decide to raise prices in order to capitalize on this trend.
Uber is also present in a number of countries around the world, so its business should be unaffected. It is important to note that Uber generates the majority of its revenues in North America and Canada. The rest comes from EMEA.
Uber is primarily competing with Lyft in the US. This company has been struggling to increase its market share for years.
Uber is doing very well
Uber’s business is doing well, and this has reflected in the stock price. The growth of autonomous cars is likely to be a future catalyst. These vehicles may not be very popular in America, but some Chinese firms like Horizon AI and Pony AI have been leading the charge.
The era of self-driving cars is approaching. Uber will capitalize on this trend, launching its autonomous vehicles and keeping the majority of cash. Currently, Uber shares the majority of its revenues with drivers.
Uber gross bookings increased by 18% year-over-year in the fourth quarter, to $44.2 Billion. The growth in Uber’s mobility and delivery businesses was largely responsible for this.
Uber’s Q4 revenue increased by 20% to $12 billion. Its adjusted EBITDA also rose 44%, to $1.8 billion.
Analysts believe that Uber will have a successful year. It is estimated that Uber’s revenue will increase by 14% to $11.6 Billion, resulting in a revenue of $50.3 Billion. In 2026, its revenue is expected to reach $57.65billion.
Technical analysis of Uber Stock Price
Uber’s share price is shown on the weekly chart to have remained stable in recent months. The price has been above the trendline ascending that links the December 2022 low swing.
Uber’s shares have remained higher than the Exponential Moving Averaging (EMA) for both 50 and 100 weeks. The pattern has formed an ascending triangular shape, and the lines are on their way to convergence.
Uber’s stock will most likely experience a bullish breakout within the next few weeks. The bullish forecast will be confirmed by a rally above the $81.85 key resistance level. If it moves above this level, we can expect to see more gains up to $86,85. This was the biggest swing of October 7. A move above this level signals a rise to $86.85, the highest swing on October 7.
Uber Stock: Could it reach $100 by 2025?
The post Uber’s stock is about to break out amid tailwinds from tariffs could be updated as new information becomes available.
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