Uber (UBER) fails to meet the hype of its IPO, shares crash in a downward spiral
Since its IPO, which was the biggest (expected) market debut this year, shares of San-Francisco based ride hailing platform Uber fell into a downward spiral, dropping as much as 11% to $37.08 in New York. The company started trading by selling 180 million shares at $45 apiece on Thursday, but on Friday it went further down by 7.6% to trade at $41.57, and never traded above debut price even though other stocks went up. Even the company’s CEO doesn’t expect the situation to get any better in the near future.
The drop in shares is an indicator of investors’ doubts about the size of the ride-hailing market as well as Uber’s capability to manage so many segments that it has recently forayed into, like food, package delivery and its push into autonomous vehicles. On top of this, investors are also not very confident about investing into risky assets, thanks to the persisting U.S-China trade dispute which has only worsened in the recent past.
Analysts currently have rated ‘outperform’ on Uber and sees the stock reaching $65 in 2019.
Uber’s stock comes as a huge disappointment as the company failed to meet the hype it created before its initial offering. Rival platform Lyft (LYFT) too had the same luck which clocked a 29% loss since it debuted in the stock market in March.
UBER's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for UBER turned positive on April 14, 2025. Looking at past instances where UBER's MACD turned positive, the stock continued to rise in of 40 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on April 17, 2025. You may want to consider a long position or call options on UBER as a result. In of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
UBER moved above its 50-day moving average on April 24, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for UBER crossed bullishly above the 50-day moving average on April 25, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 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 304 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 191 cases where UBER Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for UBER moved out of overbought territory on May 07, 2025. 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 36 similar instances where the indicator moved out of overbought territory. In of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 17 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
UBER broke above its upper Bollinger Band on May 02, 2025. 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.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued 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 (14.144) is normal, around the industry mean (30.917). P/E Ratio (87.816) is within average values for comparable stocks, (160.020). Projected Growth (PEG Ratio) (2.162) is also within normal values, averaging (2.714). Dividend Yield (0.000) settles around the average of (0.029) among similar stocks. P/S Ratio (4.286) is also within normal values, averaging (59.831).
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.
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Fundamental Analysis Ratings
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General Information
a company which provides a ride hailing services, develops applications for road transportation, navigation, ride sharing, and payment processing solutions.
Industry PackagedSoftware