Uber Fundamental & Technical Analysis


Chart done on hourly timeframe. Uber shares are falling this morning despite the company’s latest strong earnings. The company posted its first even operating profit and growth surpassed expectations in the last three months. The ride hailing giant stated that demand in North America has regained pre-pandemic levels, but their freight division is still lacking demand. What matters most is their core business, which is growing, and the company is making subtle changes to improve their bottomline. Revenue growth for Uber is very impressive, jumping from 13B in 2019 to nearly 34B in the trailing twelve months. Free cash flow recently topped 1B as well, giving them plenty of cash to put back into the business. Their valuation at 90B could be seen as high right now, but if they can continue this revenue growth then it’s fair to say they’re earnings the price. 

Technical analysis:

Although they beat earnings with impressive results, shares of the company are falling and it’s likely because the earnings were already priced in. Uber has been on a rally since they posted their previous quarter earnings in May so they wouldn’t needed to post numbers much above the target for them to rally. The pull back can be seen as an opportunity for entry, but charts point to a potential further decline to retest the 41.75-44.50 range before recovery.