Stock Story -
What Happened?
Shares of ride sharing and on demand delivery service Uber (NYSE: UBER) jumped 8.9% in the morning session after Tesla (NASDAQ:TSLA) announced plans for the launch of its Robotaxi service as early as 2025 in a move that could alter the ridehailing market for better or worse. Uber's stock reaction suggests that the market sees some potential for the company to benefit. Some Wall Street analysts weighed in on the development, with Jefferies' John Colantuoni adding, "We consider the event a best-case outcome for Uber."Is now the time to buy Uber? Find out by reading the original article on StockStory, it’s free.
What The Market Is Telling Us
Uber’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.The previous big move we wrote about was 28 days ago when the stock gained 6.5% on the news that the company announced a partnership with Waymo to provide autonomous ride-hailing services to riders in Austin and Atlanta.
According to the press release, Waymo's fully autonomous, all-electric Jaguar I-PACE vehicles will be available to riders through various Uber services, including UberX, Uber Green, Uber Comfort, and Uber Comfort Electric. The move could improve the number of fully autonomous trips booked via the Uber app and accelerate topline growth as more users explore the option.
Uber is up 45.8% since the beginning of the year, and at $85.08 per share, has set a new 52-week high. Investors who bought $1,000 worth of Uber’s shares 5 years ago would now be looking at an investment worth $2,825.