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Trends & Analysis
News

Week Ahead Preview: 20th of May

News

Walmart’s stock hits record high on Q1 results

News

Crude oil rises on US supplies, inflation data

News

Another nice quarter for NVIDIA?

News

Alibaba delivers earnings miss, shares slide

News

USD edges lower ahead of key economic reports

Asset Watch

Buy the Uber breakout?

Thursday, November 9, 2023

While Uber missed most analysts’ earnings predictions on November 7, the ridesharing giant’s top-line weakness was a function of an accounting reclassification. CEO Dara Khosrowshahi said the company’s revenue growth would have been 8% higher if certain revenue subtractions were classified as expenses.

 

Moreover, mobility and delivery gross bookings rose by 31% and 18%, respectively. “These results demonstrate that Uber continues to drive profitable growth at scale,” said Khosrowshahi. “[That’s] why we believe we’re well positioned for the journey ahead, in good or bad macro environments.”

 

So with investors pushing the stock above a key resistance level on November 7, could the momentum continue?

The horizontal gray line shows how Uber ended the session above its November 2020 and July 2023 closing highs, which are near $49.50. Furthermore, the area acted as key support in early 2021, as intramonth dips were bought until a breakdown occurred in July 2021.

What’s more, following the July 2021 breakdown the 10-month moving average became a major player. It acted as resistance en route to new lows. In contrast, the 10-month MA is now support, and Uber bounced near the level in April and October 2023. Consequently, $41.30 should hold unless a recession arrives.

So, if Uber’s acceleration continues in the days ahead, will the breakout elicit a rally back above $60?


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