Uber Stock Losing Traction After Lawsuit

Uber is facing the music after driving a competitor out of business with illegal practices

Jake Scott

Deputy Editor

May 4, 2020 at 2:28 PM

UBER

The shares of Uber Technologies Inc (NYSE:UBER) were last seen down 4% trading at $27.25, after it was announced Friday that a U.S. judge ordered the ride sharing behemoth to face a lawsuit claiming its "illegal predatory pricing" and other anti-competitive practices hindered competition. And today, the ride-sharing app's Eats program exited eight global markets, while subsidiary Careem laying off 31% of its workforce.

Uber stock is currently down 9.3% year-to-date. Although the shares tacked on 18% in the last month, they ran headfirst into their 80-day moving average, a trendline not conquered on a closing basis since early March. However, the equity remains comfortably distant from its March 18 record low of $13.71.

UBER Chart 2 May 4

Despite relative mediocrity on the charts, an overwhelming majority of analysts are bullish on Uber stock. Of the 35 covering the security, 31 sport a "buy" or better. Echoing this is the stock's consensus 12-month target price of $38.02, a 34% premium to last night's close.

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