#2 - Uber (NYSE:UBER)
Another industry that got destroyed in the pandemic was ride-hailing companies. Uber (NYSE:UBER) was able to find a bit of a lifeline with increased demand for its Uber Eats service. However, UBER stock pushed past its previous 52-week high in November and hasn’t looked back.
The easy answer is that investors anticipate a return to normal. But that’s too simplistic. The real catalyst was the passage of California Proposition 22, which allows Uber and other gig platforms to continue classifying their drivers as independent contractors rather than employees. Drivers will have some limited new benefits, including a pay floor and contributions to health care and accident insurance. However, if the law had passed, it would have fundamentally changed the company’s business model.
Like Airbnb, investors may want to wait for a pullback before jumping on UBER stock. The valuation is starting to look a little stretched, and the consensus of analysts is that the stock is priced just about right at its present level. And remember, Uber is not profitable yet, although earlier this year, the company forecast profitability on an adjusted basis by the end of 2021.
About Uber Technologies
Uber Technologies, Inc develops and operates proprietary technology applications in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia excluding China and Southeast Asia. It operates through three segments: Mobility, Delivery, and Freight. The Mobility segment connects consumers with a range of transportation modalities, such as ridesharing, carsharing, micromobility, rentals, public transit, taxis, and other modalities; and offers riders in a variety of vehicle types, as well as financial partnerships products and advertising services.
Read More - Current Price
- $69.23
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 29 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $81.65 (17.9% Upside)
