Bullish option flow was detected in UBER stock on February 15, 2022.
Bullish Option Flow
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Uber price target lowered to $48 from $57 at Wedbush
On February 14, 2022, Wedbush analyst Ygal Arounian lowered the firm’s price target on Uber to $48 from $57 and kept an Outperform rating on the shares. The analyst notes that at its Investor Day last week, Uber gave updates on Mobility, Delivery, Freight, its cross-platforming opportunity, Uber for Business, and its burgeoning ads business. Management also issued 2024 targets, including $165B-$175B in Gross bookings or 22% to 25% annualized growth, and $5B in Adjusted EBITDA, with revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... growing faster than gross bookings. While the 2024 targets would signal continued strong growth and significant improvements to profitability, the gross bookings midpoint of $170B was in line with consensus 2024 estimates, and Adjusted EBITDA was below the consensus estimate of $5.7B.
Uber price target lowered to $45 from $50 at Oppenheimer
On February 11, 2022, Oppenheimer analyst Jason Helfstein lowered the firm’s price target on Uber to $45 from $50 and kept an Outperform rating on the shares. Uber is poised to benefit from a return to work and business travel. Investor Day gives more guidance on the medium-term view toward becoming a “Super-App,” Helfstein said.
Uber Announces Results for Fourth Quarter and Full Year 2021
On February 9, 2022, Uber Technologies, Inc. (NYSE: UBER) announced financial results for the quarter and full-year ended December 31, 2021. Uber reported Q4 EPS of (54c) versus the consensus estimate of (35c). The company reported Q4 revenue of $5.78B versus the consensus estimate of $5.34B.
Financial Highlights for Fourth Quarter 2021
- Gross Bookings grew 51% year-over-year (“YoY”) to $25.9 billion, or 50% on a constant currency basis, with Mobility Gross Bookings of $11.3 billion (+67% YoY) and Delivery Gross Bookings of $13.4 billion (+34% YoY). Trips during the quarter grew 23% YoY to 1.77 billion, or approximately 19 million trips per day on average.
- Revenue grew 83% YoY to $5.8 billion, or 82% on a constant currency basis.
- Net income attributable to Uber Technologies, Inc. was $892 million, which includes a $1.4 billion net benefit (pre-tax) relating to Uber’s equity investments, primarily due to aggregate unrealized gains related to the revaluation of Uber’s Grab and Aurora equity investments, partially offset by an unrealized loss related to the revaluation of Uber’s Didi equity investment. Additionally, net income includes $334 million in stock-based compensation expense.
- Adjusted EBITDA of $86 million, up $540 million YoY. Adjusted EBITDA margin as a percentage of Gross Bookings was 0.3%, up from (2.6)% in Q4 2020.
- Mobility Adjusted EBITDA of $575 million, up $282 million YoY. Mobility Adjusted EBITDA margin as a percentage of Mobility Gross Bookings was 5.1%, up from 4.3% in Q4 2020.
- Delivery Adjusted EBITDA of $25 million, up $170 million YoY. Delivery Adjusted EBITDA margin as a percentage of Delivery Gross Bookings reached 0.2%, up from (1.4)% in Q4 2020.
- Unrestricted cash and cash equivalents were $4.3 billion at the end of the fourth quarter.
“Our results demonstrate just how far we’ve come since the beginning of the pandemic,” said Dara Khosrowshahi, CEO. “In Q4, more consumers were active on our platform than ever before, Delivery reached Adjusted EBITDA profitability, and Mobility Gross Bookings approached pre-pandemic levels. While the Omicron variant began to impact our business in late December, Mobility is already starting to bounce back, with Gross Bookings up 25% month-on-month in the most recent week.”
“We outperformed our quarterly guidance and delivered $540 million of Adjusted EBITDA improvement compared to Q4 of last year,” said Nelson Chai, CFO. “Moving forward, we are poised to continue to grow at scale while expanding profitability.”
📺 Uber CEO on profitability for rush grocery delivery, FTC probe and more[embedyt] https://www.youtube.com/watch?v=DIB_lAr8W5s[/embedyt]
📉 UBER Stock Technical Analysis
Both the long and short-term trends are negative. Volume has been considerably higher in the last couple of days. UBER is one of the lesser performing stocks in the Road & Rail industry. 72% of 46 stocks in the same industry do better. UBER is currently trading in the lower part of its 52-week range, which is not a good signal considering the S&P500 Index is trading in the middle of its 52-week range.
There is a support zone ranging from 35.20 to 35.41. This zone is formed by a combination of multiple trend lines in the weekly time frame. There is also support at 34.08 from a horizontal line in the daily time frame.
There is a resistance zone ranging from 38.89 to 39.51. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. There is also resistance at 40.20 from a horizontal line in the daily time frame.
UBER has a bad technical rating, but it does show a decent setup pattern. UBER stock has a Setup Rating of 5 out of 10. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 35.41, a Stop Loss order could be placed below this zone.