How to Trade Uber After Q1 Fiscal 2024 Performance

July 3, 2024 12:17 pm

Uber Technologies, known as just Uber, provides a range of services, including ride-hailing, food delivery, freight transport and courier services. It operates in 70 countries, has 150 million users monthly and carried out 9.4 billion trips last year. 

Learn more about Uber’s fiscal first-quarter 2024 performance and what analysts are forecasting for the stock below.

Stock: Uber Technologies Inc.
Symbol for Invest.MT5 Account: UBER
Date of Idea: 2 July 2024
Time Line: 1 – 6 months
Entry Level: $74.00
Target Level: $100.00
Position Size for Invest.MT5 Account: Max 5%
Risk: High
  • The Invest.MT5 account allows you to buy real stocks and shares from some of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.

Uber Fiscal Q1 2024 Performance

Here are some of the key highlights from the fiscal first-quarter 2024 earnings report from Uber: 

  • Earnings per share: 32 cents loss vs 23 cents earned expected 
  • Revenue of $10.13 billion vs $10.11 billion expected 
  • Gross bookings of $37.65, lower than $37.93 billion expected 
  • Monthly active users are up 15% year over year 
  • Trips completed for the period were up 21% year over year 

Most of Uber’s financial metrics did show growth from the last quarter and from the same time the year before. However, it did report an earnings loss of 32 cents per share which surprised the market.  

According to Uber CEO Dara Khosrowshahi, the loss had “nothing to do with the operating business.” The company had to include a $721 million headwind due to a re-evaluation of its equity investments but does not expect it to keep happening going forward.   

Uber’s mobility and delivery business also experienced growth year over year, 25% and 18% respectively. The management team stated that the shift in consumer spending from goods to services has helped with their growth.

After the earnings call on 8 May, Uber’s share price suffered its worst daily percentage loss since October 2022, wiping off $12 billion in market value. The earnings loss ended Uber’s first-ever streak of consecutive profitable quarters. The stock price has since recovered and is now trading around the price level before the drop from the earnings call. 

While the earnings loss wasn’t down to its operating business, there are still some uncertainties. Uber’s main rival in the U.S., Lyft, has been gaining market share. Uber may also be forced to do deeper background checks, such as costly fingerprint checks. There are some headwinds on the horizon to take into consideration.

Uber Stock Forecast – What do the Analysts Say?

According to analysts polled by TipRanks for an Uber stock forecast in the past 3 months, there are currently 30 buy, 1 hold and 0 sell ratings on the stock. The highest price level for a Uber stock forecast is $100.00 with the lowest price target at $71.00. 

The average price target for a Uber stock forecast is $87.93.

Source: TipRanks, 2 July 2024

An Example Trading Idea for the Uber Stock Price

  • An example trading idea for the Uber share price could be as follows:  
  • Buy the stock on a break above $74.00 to allow for volatility. 
  • Target just below the highest analyst price target of $100.00. 
  • Keep your risk small at a maximum of 5% of your total account.   
  • Time Line = 1 – 6 months  
  • If you buy 10 Uber shares:  
    • If target is reached = $260.00 potential profit [($100.00 – $74.00) * 10 shares].

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially due to some of the headwinds the company could face.

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Uber stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

However, there is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall! 

How to Buy Uber Stock in 4 Steps  

With Admirals, you can buy shares with a commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

  1. Open an account with Admirals to access the dashboard.   
  2. Click on Trade on one of your live or demo accounts to open the web platform.   
  3. Search for your stock in the search window at the top right to view the live price chart. 
  4. Click Create New Order from the bottom of the screen to open the trading ticket. 
Source: Admirals MetaTrader 5. Uber. Monthly. Date: May 2019 to July 2024, captured on 2 July 2024. Past performance is not a reliable indicator of future results or future performance.

Click on the banner below to trade Uber stock today ▼▼▼ 

Do You See the Uber Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.

If you believe there is a higher chance Uber share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.

This means you can trade long and short to potentially profit from rising and falling stock prices.

INFORMATION ABOUT ANALYTICAL MATERIALS: 

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following: 

  • This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
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  • The Analysis is prepared by an independent analyst Jitanchandra Solanki, Freelance Contributor (hereinafter “Author”) based on personal estimations.
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