Uber Technologies’ (UBER), stock rose parabolically last week to reach a new record of $86 while investors were focused on Tesla Robotaxi. This has made it one of the most successful companies in this year, as its share price has increased by more than 40%. The market capitalization of the company has risen to $181 billion as a result.
Tesla Robotaxi Event
Uber’s share price rose after Thursday’s Tesla presentation, in which it demonstrated its self-driving technology.
The majority of analysts think that this event did not meet expectations. This is why Tesla’s shares fell hard on Friday.
Some analysts have been warning for years that Tesla Robotaxi is a serious threat to a business like Uber.
Anyone can now convert their Teslas into taxis. A person who works 8-5 can drive their Tesla to the office and later use it as a taxi to transport customers.
A Tesla owner might go on vacation. The car is not kept in the garage but instead used to run a taxi service.
This business is a good fit for many. In New York for example, an Uber driver makes anywhere between $15,7 and $22, on average, per hour. If we assume the middle point at $18.85 then a Tesla driver would earn $100 by adding his car to the taxi industry.
Analysts believe the reality is much more complicated than Elon Musk had promised. It will take longer for these robotaxis to be approved in many cities.
Uber’s surge in stock price was therefore a signal that investors expect the company to thrive on the long-term. Uber’s international operations will also continue to do well in the future.
Uber’s rapid growth is accelerating
Uber is one of the world’s most innovative companies. Uber introduced ride-hailing, which has revolutionized the way people travel.
It has also expanded into other sectors, such as food delivery and grocery shopping, which have gained a substantial share of the market.
Uber also has won the battle with its competitors. It sold Grab its Southeast Asian business and took a large share.
Uber’s revenues have increased from $13 billion to $37 billion annually in the next few years. The analysts believe this trend will continue as mobility demand increases in the next few years.
The company has begun to concentrate on its profitability, reducing the large discounts it used to offer a few year ago.
Uber has seen its monthly platform active users continue to grow, despite the fierce competition within the industry. In the past quarter it had over 156 millions customers, an increase of 137,000,000 in the previous year. The number of monthly trips has also increased in recent years.
Uber reported a revenue increase of $9.23 billion from the previous financial year to $10.7 billion. Uber’s net profit increased from $1.02 billion to over $1.02billion, and its free cash flow rose from $1.14billion to more than $1.72billion.
Uber continues to grow
Uber’s earnings report on the 31st of October will likely be a catalyst in increasing its stock price. Analysts predict that Uber’s revenue for the quarter will reach $10.97billion, an 18% rise from last year.
The final quarter will bring in $11,58 billion of revenue, which brings the total to $43 Billion. Uber’s revenue will reach $50 billion in the following financial year.
Uber is still a concern to many analysts, who believe that its valuation has reached an extreme.
Uber’s forward price to sales ratio is 4.5, which is higher than the median sector figure of 1.51. It would take four years for you to recover the $181 billion you paid today.
Uber’s forward ratio was 40, which is higher than the 20.75 median for its sector. In other words, even if there is no further growth, you will need to wait 40 years before your money starts making a profit. Uber costs more than Nvidia or Microsoft.
Stock price Analysis of Uber
TradingView Uber Chart
Uber’s weekly chart indicates that it has been on a bullish run for the last few months. Last week, it crossed an important resistance level of $82.12. It was crucial to move above this level as the double-top formation that had been forming was invalidated. This is usually one of the more popular patterns for reversals.
Uber’s relative strength index (RSI), as well as the MACD indicator, have both pointed up. The stock is likely to continue to rise as the bulls aim for the next level at $100.
The post Uber Stock Price Forecast: Is it Too Late to Buy? This post may change as new information unfolds
This site is for entertainment only. Click here to read more
