Is Uber a Good Stock to Own
Many are suggesting to buy Uber as it is a leader in the coming offline era. Internet businesses are increasingly shifting to offline strategies over online services, and Uber has capitalized on that early in the cycle. This creates a better long term strategy and plus a reason to own the stock.
Uber stock took off today after receiving positive calls from a number of analysts. Uber’s stock was down about 5% since its market debut (IPO) at the New York Stock exchange (NYSE) in May. According to the Bloomberg service, Uber just received 0 sell ratings, 21 buy ratings, and 5 holds. The average 12 month price target from those analyst was $53.70. Some at Lead Edge Capital think Uber stock is dramatically undervalued.
The company has 93 million monthly active customers of its app for both food delivery and transportation needs, the ride-hailing company over the next five years can attain 25% revenue growth, according to Raymond James.
In contrast to normal Internet startups with online apps, Uber is a phone app powering offline behavior. Being an integrator of offline and online has increased costs since inception, but creates a better long-term position for profitability, analyst Justin Patterson mentioned today.
In addition, Uber is starting to make a view of Uber Eats on top of its Uber drive sharing app. Uber is merging a fully functional version of Uber Eats into Uber. Uber began rolling out a test case of the merged app several months ago. At the same time, Uber Eats will remain downloadable as its own application but will not be needed in addition to Uber.
Dara Khosrowshahi, Uber CEO shares 1Q Results and 2019 Outlook