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Uber Technologies, Inc. (UBER), with a market cap of $152.8 billion, operates within the transportation and logistics sector. The California-based company provides a global platform for mobility, delivery, and freight services, leveraging proprietary technology to connect consumers with a variety of transportation options, food delivery, and logistics solutions.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Uber Technologies fits this criterion perfectly. Uber is renowned for being the world's largest ride-sharing platform, revolutionizing urban transportation with its global presence and innovative gig economy model.
However, the ride-hailing company has dropped nearly 11% from its 52-week high of $82.14, achieved in March. Despite this pullback, shares of UBER are up 14.1% over the past three months, outperforming the broader S&P 500 Index's ($SPX) 7.9% gains over the same time frame.
Over a longer term, UBER has gained 18.8% on a YTD basis, closely matching SPX's 18.4% gains. Shares of Uber Technologies have surged 61.3% over the past 52 weeks, significantly outpacing SPX's 25.6% returns over the same time frame.
To confirm the bullish price trend, UBER has been trading above its 200-day and 50-day moving average since last year despite experiencing some fluctuations.
Uber has been outperforming over the past year due to its strong growth across its mobility, delivery, and freight segments, which has been driven by a significant increase in gross bookings and improved operating profitability. Moreover, on Aug. 6, the stock surged 10.9% after its stronger-than-expected Q2 earnings report, with a 16% revenue increase and a 19% rise in gross bookings. The boost was driven by steady demand for ride-sharing and food delivery services, impressive growth in self-driving vehicle trips, and robust performance in key regions like Latin America and Asia-Pacific.
In contrast, its rival Lyft, Inc. (LYFT) has underperformed, with a 52-week gain of 8.4% and a 22.2% decline on a YTD basis.
Due to Uber's robust market position and recent outperformance, analysts are bullish about its prospects. The stock has a consensus rating of “Strong Buy” from the 41 analysts in coverage, and the mean price target of $86.08 is a premium of 17.7% to current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
