Is Uber Stock Driving in the Right Direction?

UBER is down 42% in 2022

facebook twitter linkedin


Uber Technologies, Inc. (NYSE:UBER) fell to a two-year low roughly a month ago after a lackluster earnings report. With earnings out of the way and the summer months here, is there any hope for the ride-sharing app?

Uber stock has taken a 42% haircut in 2022. Since that aforementioned bottom, the shares have traded in a tight range between $23 and $25. Yet no analysts have come forward to adjust their stance bearishly; 17 of the 19 brokerages covering UBER maintain "buy" or better ratings, with zero "sells" on the books.

Uber stock now provides a decent valuation at a price-sales ratio of 2.09, based on their recent top-line growth rate. The company has managed to grow their trailing 12-month revenues 92% after reporting a 21% decrease for fiscal 2020. UBER is also estimated to end fiscal 2022 with 72% revenue growth and increase revenues by another 21.2% in 2023.

The ridesharing business’s fundamentals offer a high level of risk. UBER currently owes $11.42 billion in total debt and holds $4.18 billion in cash on their balance sheet. Uber Technologies is also expected to experience a large decline in earnings this year. Estimates have their EPS (earnings per share) dropping by $2.19, from -$1.00 to -$3.19 for fiscal 2022. In general, UBER's business model presents too many uncertainties at the moment for Uber stock to be considered a safe long-term investment.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners