Uber Up Next
As US earnings season rolls on, Uber is up next to report today. The company has seen its share prices trending steadily lower since the highs printed early last year. The group saw strong performance over the peak of the pandemic with a record surge in food deliveries offsetting the drop in transport. Then as the pandemic eased, food deliveries stayed relatively high while private transport levels increased as consumers sought protection from public transport. However, over much of last year, share prices dwindled with Uber falling from highs around $64 to current lows around $38.
Looking ahead to today’s release, the company is expected to report earnings per share of
-$0.30 on revenues of $5.346 billion. This would represent a sharp uptick in revenues though a drop in earnings. Given the bearish pressure seen across tech stocks over recent weeks, a miss today could send Uber lower. However, if we see an upside surprise, conditions are ripe for a topside move in Uber. Let’s look at the technicals.
Technical Views
UBER
While prices have been trending lower over the last year, price action has flattened out recently with price holding along the support level at 33.29. Given the strong bullish divergence between this low and the prior, slightly higher low, this suggests room for a near-term topside reversal. A strong release today might see Uber set off higher with a break of 38.93 targeting 45.16 initially and a test of the channel top with 51.40 the broader target on a channel break.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.