Investing in Uber
To help you in your journey through the stock market world, we have made an in-depth analysis with which you can get the most important information about Uber. This way you will be able to increase your chances of success within your foray into the stock market. Now, without further ado, let’s get started.
What is Uber?
Uber or better known as Uber Technologies Inc. is a company founded in 2009 based in the United States. This company is the creator and owner of an application that is responsible for facilitating transportation to users. Its business scheme is quite simple: driver partners offer their services and the platform puts them in contact with customers.
Its strength is to provide a solution to the mobility problem in the world’s major cities, which is why Uber has become a benchmark in technological development that allows professional drivers to offer their services to individuals. Being a benchmark in its field, Uber’s technological platform has an impressive presence in 310 cities around the world.
Uber entered the world of the stock market recently, specifically in March 2019, with what can be considered as a company whose listing is young. The fluctuations present in the transportation market has affected Uber, although this company fervently catalogs itself as a technology company.
As a result, the company’s shares, which were valued at US$72 at the time of its launch, are currently around US$50. However, Uber’s global reach and the application’s direct association with ridesharing offer serious advantages over its closest competitors.
In fact, its expansions in Asia and Latin America have earned it an excellent business outlook that provides a growing business window. On the other hand, the downward trend in this company’s share price offers the opportunity for short selling.
Such a scheme allows you to get profit without complication as long as you have a good broker. This is an operation that you can perfectly consult with your broker in order to make money without complications. In addition, through contracts for difference or CFDs you have a greater opportunity to earn profits when trading Uber shares.
- Uber, as a technological platform, offers a wide range of services that allow it to be highly versatile, making it possible to adapt to the needs of the transportation markets in each city.
- With UberEATS, the company bet on increasing the radius of operation by moving away from the scheme so far developed for the transportation of people to the sector of home food transportation. This has become one of the strengths of Uber’s driver-subscribers during the Covid-19 pandemic.
- Uber presents a fairly simple and hassle-free way where drivers can get extra resources.
- This company is in the search, development and implementation of the chauffeurless car system.
- This company has been involved in a series of media clashes that have eroded its image, which has had a serious impact on its share price. Among the main points of friction are the continuous clashes with cab drivers’ unions in various cities where Uber operates, as well as various legal clashes with different governments.
- During 2016, 2017 and 2018 the company suffered severe setbacks in terms of losses with 2017 being the worst with a reduction of 4.5 billion US dollars. However, changes in its board cleared this steep trend.
- The market has increasingly stiff and growing competition that is taking away ground from Uber, especially because of the image it has projected.
At this point you are almost ready to enter the stock market by trading Uber shares. But before you take this important step, you need to get yourself a good borker.
Brokers are nothing more than professional companies or individuals who are in charge of carrying out stock market operations. This is because they are licensed as brokers. The point is that it is usually better to look for companies experienced in these activities, since they have much more experience and the ability to operate in various international markets.
In this way the companies that work as brokers offer you a wide range of opportunities so that you can invest your money in the best way. In any case, to save you time and even a bad choice we have brought you a short list with the best brokers companies, these are:
- Bankinter Broker
Once you have studied the conditions offered by your future broker, make the contract with them according to the specifications they provide you. Once you have your account, you can access their search engine, where you have the opportunity to find Uber shares. You are also offered a set of charts, analysis and other information that will allow you to perform various types of operations.
- Never fail to stay informed about the legal conditions of Uber’s operations in the countries where it operates, as this can have an impact on the share price.
- When investing your money in Uber shares, as in any other financial asset, do not use capital that must be used in the short term.
- It is always prudent to perform fundamental and technical analysis of the company to make a decision to buy or sell.