Best time to buy Uber shares
Uber shares are trading at a lower price today than on the first day of trading. However, investors have four strong arguments for buying Uber stock right now to take advantage of the lower price.
Uber (UBER) shares are not at their best today, but investors are looking not only at the company's history, but also at its prospects and macroeconomic conditions for future growth.
Uber's share price was less than $40 per share at the close of trading on Wednesday.
Some market analysts believe the current momentum could be a good opportunity for investors who missed the company's IPO or are thinking of buying shares to take advantage of the lower price.
Causes of Uber's share price fall
The main reason for the fall is the COVID-19 pandemic, due to quarantine measures and public fears, revenue from Uber's taxi segment, which accounted for more than a third of the company's total revenue in the last reported quarter, is plummeting. We can see the sharp decline in Uber shares due to this reason in the chart last February. The same is happening this year amid fears of the effects of Delta's new COVID-19 strain.
However, mass vaccination of the population solves the problem with the virus, and in addition, experts note that countries have "already learned to live with it" using proper precautions. The results of a Phase II trial of the COVID-19 vaccine Moderna (MRNA) showed that a booster dose of the vaccine (given after the fact) induced a "robust" anti-viral immune response against three strains of COVID, including Delta.
Among all the comments and assessments from market analysts, four strong arguments for buying Uber stock today stand out.
Uber shares will continue to benefit from the lifting of quarantine restrictions and the revival of the restaurant and tourism industries. Although the growth rate of these industries is far from pre-pandemic they are recovering.
The ongoing growth of Uber's taxi business (Uber Mobility) is evident gross bookings rose to $8.6bn in the second quarter, up 184% from a year ago. This growth has been overshadowed by the news that Uber is currently struggling with a shortage of drivers, which has somewhat upset investors.
