Uber Technologies, Inc. (UBER:NYSE)
Price at Preparation: $65.74 (Dec 9^th, 2024)

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What they do

Uber Technologies, Inc. (UBER:NYSE) provides a platform that allows users to access transportation and food ordering services. The Company operates through two segments:

• Core Platform: Consists of Ridesharing and Uber Eats. Ridesharing refers to products that connects consumers with drivers who provide rides in a variety of vehicles, such as cars, auto rickshaws, motorbikes, minibuses and taxis. Its Uber Eats platform allows consumers to search for and discover local restaurants and order meals through online.
• Other bets: Consists of Uber Freight and New Mobility platforms. The Uber Freight platform creates a transparent and on-demand marketplace that connects shippers and carriers. The New Mobility platforms include products that provide consumers with access to rides through a variety of modes, including dockless e-bikes and e-scooters.

Welcome back to Theta Bandits Top Pick Tuesday, where we search the markets to bring you fresh ideas that could be a potential winner in any portfolio.

Opinion

Uber Technologies, Inc (UBER:NYSE) caught our eye for today’s pick after a news story late last week seemed to trigger a 10% price drop in one session. While this type of move is unusual, it is a continuation of the stock pull back from it’s 52-week high of $87.00 USD in October. Looking at the daily chart over the last year when the stock has pulled down it has often not stayed down for too long before rebounding – so can we take advantage?

The analyst street consensus is bullish with 51 Buys, 7 Holds, 0 Sells and 12-Month Price Targets (PT) as follows:

• Low: $75.00 USD (+14.09%)
• Average: $90.89 USD (+38.26%)
• High: $120.00 USD (+82.54%)

Plan

As usual, find the chart below with following colors:

• Blue: 52-week high.
• Red: 52-week low.
• Green: 12 Month PTs (high / avg / low).
• Orange: Support/resistance lines.
• Yellow: Our plan.

For this plan it is falls into the trade bracket vs the investment bracket as what we are looking for is taking advantage on a potential rebound to the recent price drop. Those familiar with our methods know we like to mitigate risk on everything. This can be achieved by securing as much of the original investment as possible, until there are only profits remaining to do the heavy lifting for the remainder of the trade – risk free!

In the chart below, we have identified and highlighted with yellow lines 2 things. First, the recent downward trend from the 52-week high and second, a strong resistance line where we indicate “above this line is bonus” – indicating this is where it would be good to exit the trade or only keep profits working. Once the stock starts moving up, targets have been set at $73.53 USD, $79.60 USD and $82.00 USD. Please make sure to use and update stop-losses to protect the initial investment.

This is only one method how to trade this movement. We discuss other potential methods to attack this stock through our discord server and we will discuss this trade live IF you sign up to attend our Theta Bandits Webinar – When we trade together, we learn together!

RISKS

The goal is to grow capital by securing profits along the way and limiting losses. Make sure to plan to trade within your risk tolerance, allowing time for success while updating limits and exit points to mitigate risk.

If you’ve been finding our picks helpful, imagine what trading live holds. You know what to do

Disclaimer: This article is for informational and educational purposes only, not investment advice. We recommend researching and consulting with a financial advisor before making investment decisions. All actions based on this information are at your own risk.