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Edward Flores's Avatar
published in Blogs
Feb 20, 2021

Uber Just Lost Big in the U.K. - What Does It Mean for the Stock?

Uber, Lyft, Doordash, and other ride-sharing/delivery apps are spending a lot of time in court these days. At issue is the status of drivers -- are they independent contractors, as Uber and others insist, or are they employees?

The difference could cost the companies billions. 

Last week, the U.K.'s Supreme Court dealt a blow to Uber, in ruling that a group of former drivers were entitled to minimum wage and other benefits, effectively granting the plaintiffs "employment status." As expected, Uber appealed the decision, but it's unclear where the appeal will get them - the U.K. Supreme Court is not obligated to hear the case again.

The U.K.'s decision only applies to the drivers who filed the case, not the entire labor pool. But the precedent appears to be set, and it follows many similar decisions being made across Europe. Reclassifying drivers as employees would essentially ruin Uber's business model, and create exorbitant new costs. It could also hurt future earnings, and thus impact the stock's performance.

Even still, while victories for labor accumulate in Europe, drivers have had less luck in the United States. In last fall's election, voters in California sided with Uber, Lyft, and Instacart in allowing them to continue their contract-work systems. It's clear that tension between workers and companies driving the gig economy are poised to continue. 

So what does this mean for the stocks of major players like Uber, Lyft, and DoorDash? Tickeron's Artificial Intelligence, A.I.dvisor, has some answers below.

Related Ticker: UBER

UBER sees MACD Histogram just turned negative

UBER saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on May 24, 2023. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 31 instances where the indicator turned negative. In of the 31 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The 10-day RSI Indicator for UBER moved out of overbought territory on June 06, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 21 similar instances where the indicator moved out of overbought territory. In of the 21 cases, the stock moved lower in the following days. This puts the odds of a move lower at .

The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where UBER declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

UBER broke above its upper Bollinger Band on June 05, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on May 31, 2023. You may want to consider a long position or call options on UBER as a result. In of 68 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

The 10-day moving average for UBER crossed bullishly above the 50-day moving average on May 04, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where UBER advanced for three days, in of 232 cases, the price rose further within the following month. The odds of a continued upward trend are .

The Aroon Indicator entered an Uptrend today. In of 145 cases where UBER Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

Fundamental Analysis (Ratings)

Fear & Greed

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. UBER’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (10.515) is normal, around the industry mean (31.510). P/E Ratio (0.000) is within average values for comparable stocks, (167.536). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (4.116). Dividend Yield (0.000) settles around the average of (0.068) among similar stocks. P/S Ratio (2.290) is also within normal values, averaging (77.832).

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. UBER’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock worse than average.

Notable companies

The most notable companies in this group are Microsoft Corp (NASDAQ:MSFT), Oracle Corp (NYSE:ORCL), Salesforce (NYSE:CRM), Adobe (NASDAQ:ADBE), Intuit (NASDAQ:INTU), SERVICENOW (NYSE:NOW), Uber Technologies (NYSE:UBER), Shopify (NYSE:SHOP), Palo Alto Networks (NASDAQ:PANW), Activision Blizzard (NASDAQ:ATVI).

Industry description

Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.

Market Cap

The average market capitalization across the Packaged Software Industry is 7.91B. The market cap for tickers in the group ranges from 291 to 2.48T. MSFT holds the highest valuation in this group at 2.48T. The lowest valued company is BLGI at 291.

High and low price notable news

The average weekly price growth across all stocks in the Packaged Software Industry was 1%. For the same Industry, the average monthly price growth was 10%, and the average quarterly price growth was 28%. LQAVF experienced the highest price growth at 210%, while TMNA experienced the biggest fall at -83%.

Volume

The average weekly volume growth across all stocks in the Packaged Software Industry was -21%. For the same stocks of the Industry, the average monthly volume growth was 46% and the average quarterly volume growth was 35%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 53
P/E Growth Rating: 72
Price Growth Rating: 52
SMR Rating: 83
Profit Risk Rating: 89
Seasonality Score: 8 (-100 ... +100)
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Technical Analysis# Of IndicatorsAvg. Odds
   
   
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A.I.Advisor
published price charts
A.I. Advisor
published General Information

General Information

a company which provides a ride hailing services, develops applications for road transportation, navigation, ride sharing, and payment processing solutions.

Industry PackagedSoftware

Profile
Fundamentals
Details
Industry
Packaged Software
Address
1515 3rd Street
Phone
+1 415 612-8582
Employees
32800
Web
https://www.uber.com
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UBER and

Correlation & Price change

A.I.dvisor indicates that over the last year, UBER has been loosely correlated with SQ. These tickers have moved in lockstep 61% of the time. This A.I.-generated data suggests there is some statistical probability that if UBER jumps, then SQ could also see price increases.

1D
1W
1M
1Q
6M
1Y
5Y
Ticker /
NAME
Correlation
To UBER
1D Price
Change %
UBER100%
-3.13%
SQ - UBER
61%
Loosely correlated
+0.39%
COIN - UBER
60%
Loosely correlated
+3.20%
CDAY - UBER
60%
Loosely correlated
-2.96%
TTD - UBER
60%
Loosely correlated
-1.63%
LYFT - UBER
59%
Loosely correlated
-0.44%
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