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 may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 37 cases where UBER's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
The RSI Indicator entered the oversold zone -- be on the watch for UBER's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where UBER advanced for three days, in of 293 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Momentum Indicator moved below the 0 level on April 03, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on UBER as a result. In of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
UBER moved below its 50-day moving average on April 12, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for UBER crossed bearishly below the 50-day moving average on April 11, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 .
The Aroon Indicator for UBER entered a downward trend on April 19, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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 SMR rating for this company is (best 1 - 100 worst), indicating 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to slightly better 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly 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 (29.871). P/E Ratio (87.816) is within average values for comparable stocks, (155.580). Projected Growth (PEG Ratio) (2.162) is also within normal values, averaging (2.725). Dividend Yield (0.000) settles around the average of (0.081) among similar stocks. P/S Ratio (4.286) is also within normal values, averaging (55.249).
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 90, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a company which provides a ride hailing services, develops applications for road transportation, navigation, ride sharing, and payment processing solutions.
Industry PackagedSoftware