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Uber. Should You Invest?

Updated: Sep 15, 2019

In this Company Breakdown category we'll visit and compare companies that have recent IPO's or that have been in the news making a ruckus. So with no further ado here is our first blog comparison with two titans Uber & Lyft.

At the time time of this writing Uber is priced at $33.25

Uber has recently had an IPO this year in 2019 and has traded within it's 52 week range of $30.66  -  47.08 .

Uber Technologies, Inc. is an American multinational transportation network company offering services that include peer-to-peer ridesharing, ride service hailing, food delivery, and a bicycle-sharing system. The company is based in San Francisco and has operations in over 785 metropolitan areas worldwide.

Next Earnings Date is October 28, 2019

According to IBD and Uber's last earnings report

  • Revenue grew $14% to $3.16 billion (6th straight Qtr. of decelerating growth)

  • Return on Invesment (ROI) is 14.4%

  • Profit Margin is 11.6%

As of now Uber stock has not performed accordingly to expectations. Since it's last earnings August 9, 2019. Quarterly results missed wall street expectations and Uber reported an adjusted loss of $4.72 per share. However, the company has a few things going for it. Namely

Monthly active platform customers which grew, as well as the number of trips, and average fees per customer. Consolidated analysts have a price target of $50 - $65 of the stock the most bullish at the higher end.

Uber is heavily investing in scaling and technologies, paying for it's IPO (these things are costly), and driver payout which hits it's earnings. Most analysts have a rating of Outperform meaning it will outperform the market.

As a long term buy and hold play Uber may be it! It is disrupting the market and even though it's domestic market share declined from 71% to 67% in 2018.

BIG thinks UBER is a good long term investment.


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