Uber Technologies today
Uber Technologies
(As of 12/13/2024 ET)
- 52 week range
- $54.84
▼
$87.00
- P/E ratio
- 29.82
- Target price
- $90.51
Shares Uber Technologies Inc. New York Stock Exchange: UBER most recently reached record highs in October. They have fallen significantly since then and investors will be disappointed. Shares in the taxi giant are down as much as 25%, with a particularly painful 10% fall last week. This was largely due to news of Waymo expanding sales of self-driving taxis in Miami, where many investors are concerned about increased competition.
However, while this may backfire in the short term, Uber shares are still well consolidated in the range they’ve spent most of the year in. As the final few weeks of the year approach, broader markets reach new highs and a more favorable macroeconomic environment takes shape, it may be time to get bold. Let’s jump in and take a look.
Uber Fundamentals Show Record Revenues
To begin with, Uber’s recent fundamentals have been quite strong throughout the year. The company beat expectations with its most recent earnings report in October, posting particularly strong results on both revenue and earnings.
Uber’s revenue was its highest ever and profits were 200% higher than analysts had forecast, helping to boost operating income by a whopping 55% year-over-year.
The company’s management understandably struck an upbeat tone, saying, “We delivered another record quarter of profitable growth globally, generating GAAP operating income of more than $1 billion for the first time in our company’s history.”
While competition from Waymo is heating up, the numbers don’t lie: Uber is growing rapidly and hitting profitability targets. He should be more than capable of remaining competitive.
Upbeat analyst news signals strong confidence in Uber’s potential
Uber Technologies stock forecast today
$90.51
Growth potential 51.03%Moderate purchase
Based on ratings from 39 analysts
| High forecast | US$120.00 |
|---|---|
| Average forecast | $90.51 |
| Low forecast | $62.00 |
Uber Technologies stock forecast details
It’s worth noting that some analysts are bullish on Uber, even despite its recent decline in popularity. In a note to clients last week, the JMP Securities team reiterated its “outperform” rating as well as its $95 price target.
This bullish sentiment echoes similar news from DA Davidson, Loop Capital and Tigress Financial over the past month. The latter in particular sets the bar high with a price target of $103, indicating a target upside of nearly 60% from last night’s closing price.
With shares down nearly 30% from their October high, this bullish outlook should encourage investors.
Profitability issues persist despite record revenues and operating profit
Of course, there are still concerns that Uber will have to address. While the broader market has set new highs, the company’s failure to rise above its October peak could be a warning sign for some.
There is also the question of Uber’s profitability. Although the company is posting record revenues and operating profits, it has yet to deliver consistently profitable quarters. The decline in earnings per share earlier this year remains a sore point, and Uber will need a strong start in 2025 to dispel any concerns about it.
Uber’s strong brand and market share are poised for a strong start to 2025
However, one cannot ignore the existing fundamental dynamics or optimistic forecasts of analysts. From a technical perspective, Uber’s setup shows every sign that the stock is poised for another rally. After falling last week, the relative strength index (RSI) is now at 33, indicating that stocks are oversold and heading into extreme territory.
For context, RSI measures the speed and magnitude of recent price changes: levels below 30 indicate that stocks are heavily oversold. With Uber’s RSI hovering just above this mark and bears unable to push the stock below last week’s low, it could soon start to run out of steam. This will put the bulls back in control and any close above $67 will likely confirm a resumption of the rally.
There’s no doubt that investors are a little scared of Waymo, but the competition is good and in many ways should be welcomed. Uber has a strong brand, incredible market share and enough fundamental momentum to start 2025 strong. Last week’s fall could well be seen as a great entry opportunity ahead of new highs in the new year.
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