Uber's Strategic Return to Aberdeen Is Fueling A 12% Surge in Their Stock Performance

  • Uber's stock experienced a significant rise of over 7%.
  • The nearly 12% increase for the year, suggests growing investor confidence.

Uber Technologies Inc UBER initially launched its services in Aberdeen back in 2018 but encountered a setback when its license was revoked. They have since worked through local regulations to resume services successfully. This comes after the Aberdeen City Council’s licensing committee approved a new application earlier this year.

Uber's comeback in Aberdeen, alongside its services in Glasgow and Edinburgh, is set to ease transportation issues in the city. Adrian Watson, CEO of Aberdeen Inspired, notes a shortage of taxis in the area. He sees Uber's return as a positive move to improve mobility for residents and visitors in Aberdeen.

Furthermore, Uber’s return seems to align with an uptrend in the company’s financial performance. After the license approval, Uber's stock surged by more than 7% following a solid rebound from the support level at approximately $64, where it had been stable for a few weeks.

This level was a key support as the stock dropped 21% from March. It prevented further decline and served as the final line of defense.

The recovery, which is in play, has now reached the daily 50 simple moving average, which might now serve as a resistance level, potentially pushing the price back down.

Reinforcing the positive outlook for Uber's stock, Thursday's trading session started strong with a significant increase, indicating strong buying.

The stock rose by 2.54% at the opening of the market and closed 4.68% higher, showing a nearly 12% increase for the year. This trend implies a buyer-dominated market, potentially leading to a recovery from previous losses.

As Uber strengthens its operations in Aberdeen, its stock's resilience and upward trend may signal investor confidence in its strategies.

After the closing bell on Thursday, June 6, the stock closed at $68.90, trading down by 4.68%.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

Market News and Data brought to you by Benzinga APIs
Posted In: MarketsTrading IdeasGeneralAberdeencontributorsExpert Ideas
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!