Uber Technologies has risen in price after a recommendation from UBS
Called the shares of taxi service Uber Technologies Inc. (UBER) one of the best in their portfolio and said they expect their growth to more than double compared to current levels.
UBS analysts recommend “buying” Uber Technologies shares and set a target price of $80. For comparison, at the auction on December 3, UBER cost $38.12, having risen in price by almost 6% in one day. Uber Technologies shares came under pressure after the publication of a report according to which the company still incurs a significant net loss due to investments. One of the latest acquisitions is the Chinese car rental company Didi Global. Note that Uber Technologies invests in various businesses to improve diversification. In the summer, the company acquired the logistics service provider Transplace, which will expand its presence in the freight transportation market.
So far, this business provides an insignificant share of the total revenue of the taxi service. Thus, out of $19.5 billion of the company’s gross orders in the first quarter of 2021, freight traffic accounted for only $302 million. Some analysts predict that the acquisition will make Uber the eighth largest logistics company in the United States.
The pandemic and the crisis in the passenger transportation market forced Uber Technologies to actively look for new directions that are more resistant to situations. Freight transportation, especially at a time of supply chain problems, can become such an “insurance” business for a company.
Uber Technologies is also working to improve user service. For example, the company will launch a pilot audio recording program in three US states as an additional security measure. Also, records can be helpful in controversial situations.
According to Uber Technologies, will be saved encrypted recordings through the company’s app, and users will not play them. If necessary, send the tapes to qualified Uber personnel who can decrypt them.
Thus, Uber Technologies continues to expand its business and improve diversification. Currently, the company’s shares remain volatile, which is also due to the general condition of the stock exchange. However, after the situation stabilizes, Uber Technologies shares may return to stable growth.
