70.69% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Important Notice - Scam website
Important Notice - Fraud awareness
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.69% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Scam website
Important Notice - Fraud awareness
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
ATFX
Language
    rch
    Client Portal
    Client Portal
    Open account
    Start trading
    rch

    Uber share price: too early to hail ride-hailing again?

    Given the way that we may be in a stop - start lockdowns for the pandemic for quite some time, the Uber share price looks to be one of the more difficult ones to make a call on. This is over and above it being in an already difficult environment. In fact, the fundamental conundrum that is the Uber share price can be made less complicated by looking at the two businesses it is most famous for, hail-riding and food delivery, separately.
    For instance, like many leading stocks in February, just before the pandemic struck, Uber shares were on a high. Indeed, they were closing in on their all time peak at $47, achieved the previous year in the immediate aftermath of their IPO.

    Learn more about shares trading with ATFX

     

    COVID-19’s impact on Uber shares

    But everything changed for investors as soon as the gravity of the COVID-19 crisis struck home, with the Uber share price more than halving. This echoed general stock market declines. However, it was clear that close proximity between passenger and driver in an Uber, over and above the new trend for work from home was going to be a severe headwind.

     

    Delivery boost to Uber shares

    In contrast, it was intuitive that a big winner in the social distancing / lockdown era would be food delivery, as consumers cut down venturing from their homes. What has been interesting in terms of the Uber share price is the way that from the May to the beginning of November there seemed to be something of a balance between the bearishness associated with hail riding and the bullishness of food delivery. This could be explained by the uncertainty regarding a possible second wave of COVID-19, as future lockdowns.However, led by lockdowns in Europe, investors had the answer that it will be the food delivery space in the ascendency over the near term at least.

     

    Uber share price breakout

    What has been interesting though, is the way that the break higher for Uber shares on a deepening of the pandemic suggests that the market now regards the company as a COVID-19 winner. This point is underlined by the way Uber shares are now fast approaching its $47 all time high level, gapping up off the back of Q3 earnings. The Uber share price was also given a post by extra stand alone positive newsflow. This included California allowing ride-hail and delivery businesses to classify drivers as independent contractors not employees, as well as the recent London license appeal win.

     

    How to trade shares with ATFX

    Looking to trade Uber shares and other major company shares? Open a live or demo account withATFX to get up to speed. Start trading now to benefit from competitive spreads, high-quality trade execution, and no commission.

    1. Register for an account or log in to your existing account

    2. Open MT4 either on your desktop or mobile

    3. Search for Uber shares in the market watch or symbols window

    4. Choose your position size

    5. Hit buy or sell, and then confirm the trade

     

    Uber shares Q3 update

    But as far as Uber shares are concerned it looks to be numbers which spell out the balance of the business: at the Q3 stage. $8.55bn for eats and $5.91bn on rides. As things stand it can be said that the Uber share price is well hedged by the company’s two main businesses. The revenue bias towards Eats over Rides does nevertheless, give the bias in favour of the COVID-19 environment, the one we are currently in.

    To see all upcoming news and data releases that’ll have an effect on the financial markets, check out our Economic Calendar. It’ll cover all major releases from global economies and give you the exact time the release is due, the previous data, forecast data and actual data (once released).

     

    Uber share price: daily chart

    All of this explains why we have a break to the upside on the Uber share price daily chart. The prospect is that we could see Uber shares hit the top of a rising trend channel as high as $60 on a 1-2 months time frame. This technical target could be delivered, especially while there is no break back below recent chart gap support at $40.

    Daily chart showing Uber share price daily movements for 2020 and analysis

     

    Risk management

    Looking to learn more about risk management and how it can benefit your trading? Check out our Risk and reward ratio article for more insight.

    Take the opportunity to develop your risk management strategy. Understand five key risk management techniques to help you look after your funds.

    Last Updated: 09/11/2020

    This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


     

    Recent news

    Bitcoin - BTCUSD Cryptocurrencies
    Bitcoin price bubble re-emerges, how high can BTCUSD reach in 2021?

    The mania in cryptocurrencies is back, and Bitcoin prices, BTCUSD, are just 1200 USD from ...

    Shares share price earnings stocks Walmart
    Walmart shares price pandemic challenge

    It can be said that for retailers of all shapes and sizes 2020 to date has been a challeng...

    Indices Shares share price earnings stocks Cineworld
    Cineworld share price could slump to 33 from 44.79 as cash reserves run out

    Cineworld share price had a stellar return of 331.23% from its October low to November hig...

    Shares share price earnings stocks Topps Tiles
    Topps Tiles share price hit by early 2020 profits warning

    It can be said that there are few stocks and sectors outside the pharma area who can prove...

    Shares share price earnings stocks iQIYI
    Bullish sentiment for the iQIYI share price

    It is usually the case that even with the most bullish of stocks and where market sentimen...