What's Going On With Uber Shares Monday?

Uber Technologies, Inc. (NYSE:UBER) shares are trading lower Friday, extending losses of more than 12% over the past month.

What To Know: On November 4, Uber reported adjusted earnings per share of 81 cents, beating the consensus estimate of 69 cents. In addition, the company reported revenue of $13.46 billion, beating the consensus estimate of $13.27 billion.

Uber said trips grew 22% year-over-year to 3.5 billion, marking one of the largest quarterly increases in the company's history, according to its earnings release. Gross bookings climbed 21% to $49.7 billion.

The company also reported adjusted EBITDA of $2.3 billion, up 33% year-over-year. CEO Dara Khosrowshahi pointed to strong consumer engagement and ongoing investments in AI and autonomy as key drivers of the quarter.

CFO Prashanth Mahendra-Rajah said the results reflect "accelerating growth and record profitability," adding that the company sees room to invest in new opportunities while continuing to return capital to shareholders.

Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.

• DA Davidson analyst Tom White maintained a Buy rating on Uber and raised the price target from $102 to $108.
• BMO Capital analyst Brian Pitz maintained an Outperform rating on Uber and lowered the price target from $113 to $106.
• Guggenheim analyst Taylor Manley maintained a Buy rating on Uber and lowered the price target from $140 to $135.
• Wells Fargo analyst Ken Gawrelski maintained an Overweight rating on Uber and lowered the price target from $125 to $120.
• Cantor Fitzgerald analyst Deepak Mathivanan maintained an Overweight rating on Uber and raised the price target from $107 to $108.

UBER Analysis: The stock is trading within its 52-week range of $59.33 to $101.99, reflecting a significant volatility that has characterized its performance over the past year. Despite this pullback, Uber has shown a robust year-to-date performance, up 29.8%, indicating strong underlying demand and investor interest in the company.

From a technical perspective, Uber is currently trading approximately 13.7% below its 50-day moving average of $95.02 and about 5.6% below its 200-day moving average of $86.80. The Relative Strength Index stands at 27.04, signaling that the stock is in oversold territory, which could suggest a potential rebound if buying interest returns. The absence of calculated support levels indicates that the 50-day moving average may serve as a critical support point in the near term.

Resistance for Uber is identified at $92.92, which aligns closely with the 50-day moving average, creating a significant barrier for upward momentum. Should the stock manage to break through this resistance level, it could pave the way for a more sustained recovery towards its recent highs.

In comparison to its peers, Uber remains among the largest players in the ride-sharing and delivery market, with a market cap of $173.21 billion, significantly outpacing competitors like Lyft and DoorDash. This positioning underscores Uber’s substantial market presence and potential for growth, even amidst current price fluctuations.

Given the current setup, traders should watch for a potential reversal as the stock approaches the 50-day moving average, which could act as a pivotal point for a bounce back. A sustained move above the resistance level of $92.92 could signal renewed bullish sentiment and a shift in momentum for Uber shares.

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UBER Price Action: At the time of writing, Uber shares are trading 0.09% lower at $83.06, according to data from Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.