Wall Street is now bullish on Uber stock (NYSE:UBER), with no analysts advising investors to sell.
The ride-hailing firm was heavily damaged during the epidemic, but it is today stronger than ever.
Uber Stock Market Analysis
Uber’s stock (NYSE:UBER) price is still down 56% from its all-time high, but Wall Street is very optimistic about it, indicating that now may be a great moment to purchase. The Wall Street Journal examined 45 analysts, and 36 of them (or 80%) gave Uber its highest-possible buy recommendations.
Here’s why investors should follow that advice.
Uber is expanding and consolidating its position.
Uber’s first goal was to disrupt the established taxicab industry by leveraging technology to make the experience quicker, cheaper, and more convenient. With the push of a button, almost anybody with a smartphone may now summon a vehicle. It’s reasonable to say the company was a success, so much so that it’s now attempting to integrate the whole taxi industry onto its platform by 2025.
However, Uber has grown into other industries like food and package delivery, as well as an expanding freight industry. At the height of the epidemic, they were significant income generators for the firm, as Uber Eats and similar services were some of the key means for users to continue enjoying meals from their favorite eateries. That platform expanded even further by including a supermarket and other retail shop deliveries. It confronts increasing competition, but other carriers lack Uber’s advantages as a diverse firm.
According to gross bookings, Uber’s delivery business was greater than its mobility (ride-hailing) business in the second quarter of 2022. However, delivery climbed by just 7% year over year compared to 55% for mobility, indicating that people’s habits are progressively returning to pre-pandemic norms. Mobility should restore its position as the primary driver of bookings by the end of the quarter.
Uber has convincingly resumed growth.
Uber stock (NYSE:UBER) was doing well before the epidemic, and although the path back has been difficult, consumers have progressively returned and are now utilizing the company’s services more than ever. Uber claimed 122 million monthly active users across its platform in the second quarter of 2022, up 121% from its pandemic-era low and 10% from its pre-pandemic peak.
Uber has the support of Wall Street.
With epidemic limitations mostly lifted, the way forward has been paved for Uber, and Wall Street is excited about the idea. Even the 20% of analysts who haven’t given Uber stock (NYSE:UBER) its strongest buy recommendation are divided between overweight (bullish) and neutral.
None of them advises selling. That’s significant in today’s market when the attitude toward technology businesses is largely unfavorable. Furthermore, the average price objective on Uber stock (NYSE:UBER) among those 45 analysts is $47.89, implying a potential upside of 80% in the next year compared to where it now trades. According to one researcher, it might increase by up to 186% to $76.
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Author Okoro Chinedu 