Uber Technologies Inc. (UBER) has seen significant growth in the past year. The ride-hailing and delivery platform’s shares have skyrocketed 111% in the last 12 months1. This return not only far outpaced the broader Nasdaq Composite index, but it also means Uber is now hitting fresh all-time highs1.
Here are some key points to consider for a long position in Uber:
Network Effects: Uber’s business benefits from powerful network effects. The larger Uber gets, the more valuable its services become for all stakeholders2.
Growth Potential: Between Q3 2019 and Q3 2023, gross bookings and revenue increased 114% and 145%, respectively2.
Earnings Forecast: Wall Street analysts expect Uber will release earnings per share of $0.1593. With earnings projections at $9.76 billion, a 5% QoQ increase, and $0.39 earnings per share4.
Market Position: Uber’s network effect protects its competitive position. It would be an extremely difficult task for a new entrant, no matter how well funded, to start a competing ride-hailing or delivery business from scratch
Here are some key points to consider for a long position in Uber:
Network Effects: Uber’s business benefits from powerful network effects. The larger Uber gets, the more valuable its services become for all stakeholders2.
Growth Potential: Between Q3 2019 and Q3 2023, gross bookings and revenue increased 114% and 145%, respectively2.
Earnings Forecast: Wall Street analysts expect Uber will release earnings per share of $0.1593. With earnings projections at $9.76 billion, a 5% QoQ increase, and $0.39 earnings per share4.
Market Position: Uber’s network effect protects its competitive position. It would be an extremely difficult task for a new entrant, no matter how well funded, to start a competing ride-hailing or delivery business from scratch