Uber Share Price Forecast July 2021 – Time to Buy UBER?
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Shares of American technology company Uber Technologies (NYSE: UBER) have been dropping in value consequently since July. With the shares dropping 5% being in the red today, investors are wondering if they should invest in UBER shares anytime soon.
Uber Shares – Technical Analysis
According to the financial statement released by Uber Technologies, the company has a market cap of $83.927B while total assets are worth $34.655B. The revenue of this company was $11.14B in 2020 compared to $13.00B in 2019. The market was closed on July 29 at $44.69 with a downtrend of -3.14%.
The technical information of UBER offers more insight. Moving Averages such as Exponential Moving Average (10)(46.47), Simple Moving Average (10)(46.41), Volume Weighted Moving Average (20)(47.35), and Simple Moving Average (20)(47.63) are pointing towards a sell action. Oscillators like Momentum (10)(-1.73) and MACD Level (12, 26)(-1.6) are also pointing towards buying, while Stochastic RSI Fast (3, 3, 14, 14)(26.20) and Williams Percent Range (14)(-86.96) are being neutral.
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Recent Developments
Founded on March 29 in California, the United States, Uber Technologies offers a platform that enables clients to access transportation and food ordering services. The company functions through the Core Platform segment and Other Bets segment. The Core Platform segment manages Uber Eats and ridesharing, while the Other Bets segment consists of new mobility platforms and Uber Freight. The Uber Eats platform lets users discover local restaurants and order food online and ridesharing stands for connecting users with drivers that offer rides in various vehicles like motorbikes, taxis, cars, minibuses, and taxis. New mobility platforms allow clients to access a variety of rides, including e-scooters and e-bikes. The Freight platform connects carriers and shippers by creating a transparent and on-demand marketplace.
On July 22, 2021, Uber Freight decided to acquire the transportation logistics firm Transplace. Uber is going to buy the company from private equity firm TPG Capital for about $2.25B. $750M of it is going to be paid in stock and the rest would be paid in cash. By combining the business, Uber aims to cater to carriers and shippers. The transaction is expected to be completed by the end of this year or the first half of 2022. Uber also hopes for accelerated profitability with improved adjusted earnings.
UBER shares dropped 5% on July 29, 2021, after SoftBank decided to sell its 45 million shares in Uber, which is one-third of its stake. Reportedly, the reason behind this move may be to cover losses of SoftBank’s investment in DiDi Global, a Chinese ride-hailing company. However, another unnamed source stated that Didi Global is not related to this sale and SoftBank only considered it the right time to cash out on its stake in Uber. According to the reports, all buyers of the shares are going to have a 30days lockup period.
Should You Buy UBER Shares?
As an investor, it is crucial to observe price movement closely to assess rewards and risks before investing in a share. According to the UBER share price chart, prices have been dropping consequently since April this year. The company is also forced to delay its back-to-office date to late October since vaccination is mandatory for US employees. Moreover, technical indicators are giving a strong sell signal. All Moving Averages are pointing towards selling, while Oscillators are either pointing towards a sell action or being neutral. So, it does not look like the right time to purchase UBER shares, not even anytime soon. You need to observe the price movements closely for a few days more before making a move.
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