Uber Technologies or UBER is a popular global company that is transforming the entire ride-sharing as well as meal delivery market. After the stock's much-hyped debut that happened back in May 10, 2019, the Uber stock is known as one of the most watched IPO stocks in the market today. Its recent announcement to acquire Drizly, the alcohol-delivering company, could be a huge point for the company. The big question, however, is if Uber stock is a right purchase at the moment?
Is Uber a good stock to buy? Uber Fundamental Analysis
According to an article by Investors, despite the dramatic turnaround, Uber was still able to turn a profit. Back in 2018, Uber had been able to accomplish earnings of $0.59/share, but the profit was only temporary. Back in 2019, the company lost $5.04/share as the company still continues to burn through the cash. For 2020, the company is now expected to lose a more manageable $3.86/share, according to the IBD data.
On November 5, Uber had reported a loss of $0.62/share while their sales had fallen by 18% year over year up to $3.13 billion, according to an article by BusinessWire. According to the official IBD Stock Checkup, the Uber stock actually has a modest 73 out of the highest-possible 99 IBD Composite Rating.
What a Composite Rating is is an easy way for people to help identify the top growth stocks. This is a blend of key fundamental as well as technical metrics in order to help the investors gauge the stock's supposed strengths.
Which stock is better LYFT or Uber?
Back on November 4, Lyft (Uber's competitor) had won a gigantic battle, with voters from California approving Proposition 22, a particular ballot measure that would help preserve the business model of the particular ride-share companies. Proposition 22 will reportedly roll back California's particularly controversial AB5 labor law that went into effect previously in January.
The legislation is said to mandate companies to reclassify a number of independent contractors as their full-time employees. Proposition 22, would be able to exempt both delivery and ride-sharing companies from AB5.
Lyft Stock had reportedly been 20% above a cup with handle's expected 41.51 buy point that followed a previous December 2 bullish breakout. Both stocks at the moment are still hitting the strong resistance.
Is Uber a good long term stock after Drizly purchase?
Uber stock is said to be well extended from a cup with handle's particular 38.62 buy point. This would point to the stock not being a good buy right now. Shares are said to be 30% above the correct buy point with the whole current stock market rally.
The stock's supposed relative strength line has hit new heights during the said breakout move. This is a sign of quite a solid stock market outperformance. Uber stock had surged a whopping 7% on Tuesday and is now reclaiming its said 50-day line after what happened last week with its sharp sell-off. The article by Investor notes Uber shares could now be forming the right side of a brand new base and this could offer a new entry.
This article is owned by Tech Times
Written by Urian Buenconsejo