Is it worth investing in Uber

Uber's current financial and market position suggests caution for investors. Here's why:

1. Financial Performance: Uber's recent financials show a significant increase in net income and diluted EPS growth. The company reported a net income of $2.6 billion and a diluted EPS of $1.2, which represents a 1086.76% growth in net income and a 1100% growth in diluted EPS compared to the previous year. However, the 3-year CAGR for net income and diluted EPS is negative at -123.59% and -118.71%, respectively. This indicates a recent improvement but a long-term decline in profitability.

1/5

UBER Net Income YoY, Total Revenue YoY...

2. Market Position and Growth Prospects: Uber is a leading player in the ride-hailing and food delivery markets, with a 25% market share in ride-hailing and significant growth in the delivery segment. The transportation-as-a-service (TaaS) market is expected to grow due to technological advancements and increasing demand for on-demand, affordable, and eco-friendly transport solutions. However, the entry of competitors like Waymo into the market could impact Uber's dominance.
3. Valuation and Analyst Sentiments: The current price target for Uber is $60.32, with a dividend yield of 0%. Analysts have set a range of price targets, with recent changes indicating a mixed outlook. It's important to note that while some analysts are bullish on Uber's growth potential, others have expressed caution due to potential long-term risks.

4. Technical Indicators: Uber's technical indicators show a MACD of 0.46, an RSI of 29.73, and a KDJ of 22.18, indicating it is currently oversold. The stock is trading below its 5-day, 10-day, and 20-day moving averages, which could suggest a short-term downward trend.

1/2

UBER Trend

5. Moving Averages: The stock is also trading below its 30-day, 50-day, and 60-day moving averages, which could indicate a bearish trend. However, it is above its 120-day, 200-day, and 250-day moving averages, which may suggest a potential bottoming out of the stock price.

In conclusion, while Uber shows potential for growth due to its market position and technological advancements in the TaaS market, the negative 3-year CAGR for diluted EPS and the recent decline in stock price relative to moving averages suggest a cautious approach. Investors should weigh these factors against their investment strategy and risk tolerance before making a decision.