Why the UBER Weekly
Options Trade was Executed?…..
of Uber Technologies Inc (NYSE: UBER) have been on a steady
uptrend which started long before the technology stock mania pushed by NVIDIA and
its quarterly announcements toward the aggressive growth.
Uber's rise is founded on solid fundamental developments.
CEO realized the turning tides of the market as the FED began its path to
hiking interest rates to combat the levels of rampant inflation felt throughout
2022. The executive released a memo with a specific message pointing to cost
reduction, tighter hiring criteria, and an ultimate focus on improving the
company's free cash flow situation.
a year after the memo, markets prefer businesses with a robust and sustainable
base for free cash flow generation rather than a promise to grow at excessive
As well, some investors - and analysts - may be underestimating Uber's
usage of artificial intelligence.
shares have put in an excellent showing this year, up by 75% so far, a trend
that continued following the release of the company’s Q1 results in early May.
Gross Bookings increased by 19% year-over-year to $31.4 billion while revenue
rose by 27.5% y/y to $8.8 billion, while beating the Street’s call by $90
Technologies closed at $43.34 on Friday, marking a +1.24% move from the prior
day. The stock outpaced the S&P 500's daily loss of 0.77%. Elsewhere, the
Dow lost 0.65%, while the tech-heavy Nasdaq lost 2.23%.
Prior to Friday's
trading, shares of the ride-hailing company had gained 12.81% over the past
month. This has outpaced the Computer and Technology sector's gain of 6.75% and
the S&P 500's gain of 4.66% in that time.
The UBER Weekly
Options Trade Explained.....
** OPTION TRADE: Buy UBER JUL
28 2023 44.000 CALLS - price at last close was $1.63 - adjust accordingly.
Obviously the results will vary from trader to trader
depending on entry cost and exit price that was undertaken.
Entered the UBER Weekly Options (CALL) Trade on Monday, June 26, 2023, at 9:38, for $2.11.
Sold the UBER weekly options contracts on Monday, June 26, 2023, at 9:59, for $2.50; a
potential profit of 18%.
Re-entered the UBER Weekly Options (CALL) Trade on Monday, June 26, 2023, at 12:54, for $2.05.
Re-sold the UBER weekly options contracts on Monday, June 26, 2023, at 3:27, for $2.45; a
potential profit of 19.50%.
Re-bought the UBER Weekly Options (CALL) Trade on Monday, June 26, 2023, at 3:50, for $2.11.
Don’t miss out on further trades – become a
Uber Technologies, Inc. develops and operates proprietary technology
applications in the United States, Canada, Latin America, Europe, the Middle
East, Africa, and the Asia Pacific. It connects consumers with independent
providers of ride services for ridesharing services; and connects riders and
other consumers with restaurants, grocers, and other stores with delivery
service providers for meal preparation, grocery, and other delivery services.
The company operates through three segments: Mobility, Delivery, and
Freight. The Mobility segment provides products that connect consumers with
mobility drivers who provide rides in a range of vehicles, such as cars, auto
rickshaws, motorbikes, minibuses, or taxis. It also offers financial
partnerships, transit, and vehicle solutions offerings. The Delivery segment
allows consumers to search for and discover local restaurants, order a meal,
and either pick-up at the restaurant or have the meal delivered; and offers
grocery, alcohol, and convenience store delivery, as well as select other
goods. The Freight segment connects carriers with shippers on the company's
platform and enable carriers upfront, transparent pricing, and the ability to
book a shipment, as well as transportation management and other logistics services
The company was formerly known as Ubercab, Inc. and changed its name to
Uber Technologies, Inc. in February 2011. Uber Technologies, Inc. was founded
in 2009 and is headquartered in San Francisco, California.
Further Catalysts for the UBER Weekly Options Trade…..
reported its first quarter 2023 earnings results, which continued the company's
year-long stock price rally. Posting a 19% yearly advance in gross bookings and
earning a record free cash flow of $549 million, the CEO's focus on turning the
Uber brand into one that could blow past any valuation expectations is working.
first quarter 2023 cash flow statement, investors can find a 'Stock-based
compensation' expense for $470 million, a good chunk of the company's earning
power. This expense is compensation packaged as stock options.
investors face more than a valuation gap, as the markets ultimately realize
that the company is just as entrenched in the growth of A.I. enhancements as
other companies. Additionally, on a fundamental basis, management is still
engineering new ways to increase the company's free cash flow generative power.
Initially, it may have been a shock.
investors can expect the company to generate up to $1 billion from its new
ventures in sponsoring advertisements. These ancillary venues to capitalize on
revenue generation may be the start of something bigger.
$1 billion target may pale compared to Uber's excess of $30 billion in revenue.
However, it showcases the market share entrenchment that the company has
stance, which translates into a near monopoly position, may lead Uber into
other pockets of additional revenue-generation niches.
may be more evident by looking at Uber's expansion within its health business,
which has now expanded its delivery selection by adding groceries and OTC
users value the convenience delivered by the platform, other industries may ask
Uber to deliver their products rather than the company knocking on producers'
doors to land a delivery agreement. Uber analyst ratings may fall on the
conservative side of the spectrum, as they may not yet reflect the tailwinds at
play, which will aid the CEO's mission to expand free cash flows.
ride-hailing segment has once again become the company's leading source of
revenue. The ride-hailing industry as a whole is also entering a new era thanks
to the dawn of the autonomous robotaxi. Last year Uber signed a 10-year deal
with Motional, which is a joint venture between South Korean car manufacturer
Hyundai and mobility technology company Aptiv (APTV -1.22%).
its 130 million monthly users to the partnership, Hyundai brings its Ioniq 5
electric vehicle, and Aptiv is contributing its self-driving technology, which
can operate entirely independent of human assistance. Together, the companies
could create the largest autonomous ride-hailing network in the world.
financial estimates for this emerging industry are already mind-boggling.
Cathie Wood's Ark Investment Management says autonomous ride-hailing companies
could generate $4 trillion in annual revenue as soon as 2027, and since Uber already
has a 75% market share in the U.S. ride-hailing industry, its opportunity is
Uber Technologies had its target price hoisted by Barclays from $45.00 to
$57.00 in a research report sent to investors on Friday morning.
Uber had its price target lifted by investment analysts at Oppenheimer
from $55.00 to $65.00 in a report issued on Wednesday. Oppenheimer’s price
objective suggests a potential upside of 51.85% from the stock’s previous
Oppenheimer’s analyst, Jason Helfstein, notes the strong year-to-date
performance, but touts Uber as still being a “top large-cap pick” and thinks
there are strong catalysts ahead.
“We believe UBER will continue to benefit from a spending shift from
goods to services normalizing, exposure to the strongest consumer categories,
and return-to-work tailwinds,” Helfstein explained. “Shares stand to benefit
from impending S&P 500 inclusion as soon as December. We expect Uber will
be eligible to enter the index this December after reporting expected GAAP
profitability in 3Q23, bringing TTM GAAP net income positive. Index inclusion
generally increases demand for a stock, forcing mutual and index fund buying.”
According to the issued ratings of 28 analysts in the last
year, the consensus rating for Uber Technologies stock is Moderate Buy based on
the current 1 hold rating and 27 buy ratings for UBER. The average twelve-month
price prediction for Uber Technologies is $49.81 with a high price target of
$70.00 and a low price target of $32.00.
Uber's business has been on a
roller-coaster ride over the past few years. Its ride-hailing segment entered
2020 with record momentum, which was quickly derailed when the pandemic struck.
The company pivoted to focus on food delivery which boomed throughout 2020 and
2021, and is still a key driver of revenue today.
Uber Technologies’s fifty day moving
average is $37.74 and its two-hundred day moving average is $32.94. The company
has a market capitalization of $87.75 billion, a PE ratio of -25.06, a
price-to-earnings-growth ratio of 19.55 and a beta of 1.19. The company has a
quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of
1.12. Uber Technologies, Inc. has a 52 week low of $19.90 and a 52 week high of