Uber Technologies Inc
Uber Technologies, Inc. (NYSE: UBER) develops and operates technology applications supporting a variety of offerings on its platform. The Company connects consumers with providers of ride services, merchants, and food delivery services as well as public transportation networks. Its segments include Mobility, Delivery, and Freight.
Recent Financial and Business Updates:
- Financial Highlights for Second Quarter 2023:
- Gross Bookings surged by 16% YoY to reach USD 33.6 billion, with Mobility Gross Bookings at USD 16.7 billion (up 25% YoY) and Delivery Gross Bookings at USD 15.6 billion (up 12% YoY).
- Revenue increased by 14% YoY to USD 9.2 billion, or 17% on a constant currency basis.
- Income from operations reached USD 326 million, reflecting a USD 1.0 billion YoY increase and a USD 588 million QoQ increase.
- Net income attributable to Uber Technologies, Inc. was USD 394 million, including a USD 386 million benefit (pre-tax) due to unrealized gains from equity investments.
- Adjusted EBITDA stood at USD 916 million, up USD 552 million YoY, with an Adjusted EBITDA margin of 2.7%.
- Net cash provided by operating activities was USD 1.2 billion, and free cash flow amounted to USD 1.1 billion.
- Unrestricted cash, cash equivalents, and short-term investments totalled USD 5.5 billion at the end of Q2.
- Outlook for Q3 2023:
- For Q3 2023, the company anticipates:
- Gross Bookings ranging from USD 34.0 billion to USD 35.0 billion.
- Adjusted EBITDA within the range of USD 975 million to USD 1.025 billion.
- Operating Highlights for Second Quarter 2023:
- Monthly Active Platform Consumers (MAPCs) reached 137 million, growing 12% YoY, with 2.3 billion trips on the platform (up 22% YoY).
- Drivers and couriers earned a total of USD 15.1 billion during the quarter, marking a 17% YoY increase.
- The company introduced Uber One, a cross-platform membership program, in 15 countries.
- Revenue run-rate from Advertising exceeded USD 650 million.
- Announced a strategic partnership with Waymo to bring Waymo Driver to the Uber platform.
- Launched teen accounts with built-in safety features in Family profiles.
- Expanded mobility services, introduced new features for riders and earners, and expanded to additional cities globally.
- Partnered with Domino's for third-party delivery in the US.
- Launched Group Grocery orders globally and expanded sustainability initiatives.
- Expanded the use of sidewalk delivery robots and introduced hands-free order tracking via Amazon Alexa.
- Secured international service expansions and added new customers in Uber Freight.
- Increased the available commitments under the Revolving Credit Facility by USD 250 million.
- Recent Developments:
- CFO Nelson Chai will leave the company on January 5, 2024, with a search for his replacement underway.
- The UK Tax Authorities disputed Uber's VAT application in the UK Mobility business, resulting in a EUR386 million (USD 487 million) assessment, which Uber paid to proceed with its dispute in the UK tax court, impacting Q3 2023 operating cash flows but not the income statement.
Technical Observation (on the daily chart)
The 14-day Relative Strength Index (RSI) currently registers at 41.53, indicating a downward trend and suggesting potential further consolidation soon. Presently, the stock price is positioned below both the 21-period Simple Moving Average (SMA) and the 50-period SMA, and these moving averages are acting as resistance levels in the short to medium term. Notably, recent price action shows a rejection from the 21-period SMA, signalling a downward trajectory. The stock price is presently confined within a significant range of USD 43.00 to USD 50.00, and a breakout in either direction will likely determine the medium to long-term trend for this stock.
As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a “WATCH” rating is recommended for Uber Technologies, Inc. (NYSE: UBER) at the price of USD 44.00 as on October 05, 2023, at 07:58 am PDT.
Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
How to Read the Charts?
The yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.
The orange colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.
The red and green colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.
The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.
Technical Indicators Defined: -
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
The reference date for all price data, currency, technical indicators, support, and resistance levels is October 05, 2023. The reference data in this report has been partly sourced from REFINITIV.
Abbreviations
CMP: Current Market Price
SMA: Simple Moving Average
RSI: Relative Strength Index
USD: United States dollar
Past performance is neither an Indicator nor a guarantee of future performance
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