Shares of Uber climbed to a new 52-week high before giving up those gains Friday, the last trading day before Uber stock's official debut in the S&P 500.
Uber shares closed down by about 1% at 61.86 on the stock market today. Still, shares are significantly extended from a 49.19 buy point following a recent run of gains, according to IBD MarketSmith.
The ride-hailing and food delivery company's stock will be added to the S&P 500 index before trading starts on Monday, Dec. 18. Further, Uber stock has gained about 10% since market open on Dec. 4. That was the first trading day after the S&P Dow Jones Indices announced Uber, among other stocks, would be added to the S&P 500.
The recent run has Uber shares not far from an all-time high in value. Uber stock hit its highest point of intraday trading on Feb. 12, 2021, at 64.05, MarketSmith charts show.
Uber Stock: Analyst Top Pick For 2024
Beyond the S&P 500, analysts are largely bullish about Uber stock heading into next year. Uber was recently named a top pick for 2024, along with Amazon, by analysts at JPMorgan.
"We expect Mobility and Delivery demand to remain healthy despite macro headwinds, and for supply tailwinds to further aid growth and profitability," wrote a team of JPMorgan analysts led by Doug Anmuth in a Dec. 13 client note.
William Blair also named Uber as a top pick for next year in client note on Dec. 8.
"Assuming the macroeconomy does not deteriorate significantly, we believe the 2024 setup remains favorable for Uber given the product enhancements made and the company's ability to maintain costs and expand margins," wrote a team of William Blair analysts led by Jason Ader.
As the report noted, Uber could be vulnerable if the economy worsens.
Uber had gained 153% on the year entering trading Friday.
Separately, Uber stock has an 86 Composite Rating out of 99, according to IBD Stock Checkup. And Uber has a 97 out of 99 Relative Strength Rating.
