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San Francisco-based Uber Technologies, Inc. (UBER) is a leading global provider of ride-hailing services, connecting millions of drivers and riders through its innovative platform. Valued at $145.41 billion by market cap, Uber operates in multiple segments, including ride-sharing, food delivery (Uber Eats), and freight transportation. Its cutting-edge technology and expansive reach make it a dominant player in the mobility-as-a-service industry. Uber's top rival is Lyft, Inc. (LYFT), which also maintains a significant presence in the ride-hailing market.
Companies worth $10 billion or more are considered "large-cap" stocks, and Uber fits right into that category. Its market cap exceeds this threshold, reflecting its substantial size, stability, and influence in its industry.
Shares of UBER are currently trading 13.4% below their 52-week high of $82.14, which they hit on Mar. 4. The stock has declined 9.2% over the past three months, significantly underperforming the Technology Select Sector SPDR Fund’s (XLK) 5.5% returns over the same time frame.
In the long term, UBER is up 15.6% YTD, and the shares have gained 70.5% over the past 52 weeks. In comparison, the XLK gained 15.6% in 2024 and achieved 31.2% over the past year.
Showing a bullish trend, UBER has been trading above its 200-day moving average since early January 2023. Recently, it crossed its 50-day moving average to trade above it.
UBER reported its Q1 earnings on May 8 with a loss of $654 million, or 32 cents per share, which missed Wall Street's expectations of a 21 cents per share profit. Despite the loss, Uber's revenue for the quarter was $10.13 billion, surpassing the forecasted $10.08 billion. The stock declined 5.7% on the day of the announcement.
Highlighting the contrast in performance, UBER's competitor, Lyft, has underperformed UBER, gaining 3.9% on a YTD basis. It also lagged behind XLK over this period.
Despite the recent weakness in the stock price, analysts are optimistic about UBER's prospects. The stock has a consensus rating of "Strong Buy" from 40 analysts in coverage. The mean price target of $86.69 reflects a 20.4% premium to current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
