Uber Technologies Inc (All Sessions)
(UBER.N)Ride-sharing company Uber listed on the New York Stock Exchange in May 2019, and its shares have been a popular choice among traders and investors since. Explore the details around trading and investing in Uber stock, and learn more about the company.
Uber Technologies Inc (All Sessions) chart This market's chart. This is a visual representation of the price action in the market, over a certain period of time. You can use this to help gauge a market’s performance.
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How to buy and sell Uber shares
You can buy or sell Uber shares for free with IG,1 or trade share price movements via CFDs or spread bets.
When you invest in shares, you own them, but when you trade shares, you are simply speculating on whether the share price will go up or down. Some prefer trading because it requires only a small margin, there are various tax benefits, you can hedge your positions2, and you get more flexibility with leverage.
Leverage means you don’t need the full value of the trade upfront. All you need to open a position is a small deposit, called margin. You’ll still get exposure to the full value of the position, and your profit and loss will be based on the total position size. While this could mean more profit for a smaller initial outlay, it also means your losses could far outweigh your initial margin amount, as loss and profit are calculated on the full size of your position.
Investing in Uber shares
To buy or sell physical Uber shares, follow these steps:
- Create an account or log in to an existing account
- Open the platform and search for ‘Uber
- Choose the price you want to deal at
- Select ‘buy’ or ‘sell
Trade on the Uber share price
You can trade on the Uber share price by following these steps:
- Create an IG trading account or log in to an existing account
- Open the platform and search for ‘Uber
- Choose your position size
- Select ‘buy’ or ‘sell’ in the deal ticket and confirm the trade
Ready to trade Uber shares? Open a live trading account.
What is Uber’s business model?
Uber has a commission-based business model whereby it takes 25% of each user’s taxi fare. Passengers connect to taxi cabs via an app, and the payment is processed through the application once the trip is complete. The business’s strength lies in its innovative systems and infrastructure, while the high demand for the service attests to its success in the ride-sharing market.
Read more about Uber's business model
Uber fundamental analysis: how to analyse the company
Before trading or investing in any company, you must study its fundamentals. Such an analysis should include different factors that affect its operations, such as its management structure and financials. You should also study the health of the sector in which the company operates, as well as the overall economy.
There are various ratios you can use to determine Uber’s inherent stock value:
- Return on equity (ROE): Uber’s ROE measures how much income it makes by selling products and services compared to shareholder investments. To calculate ROE, divide Uber’s net income by its stakeholder equity
- Earnings per share (EPS): Uber’s EPS outlines whether the business is profitable or not by attaching value to its shares. To calculate Uber’s EPS, divide its profit by the number of outstanding shares
- Price-to-equity (P/E): Uber’s P/E ratio tells you how much you have to spend on its shares to make $1 in profit. To calculate P/E ratio, divide Uber’s market value by its earning per share
For more on fundamental analysis, use this guide.
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FAQs
How can I trade Uber stock?
You can trade Uber stock using derivatives, such as CFDs and spread bets. With derivatives, you can trade rising as well as falling prices, because you don’t take ownership of the underlying assets. If you want to buy the shares outright instead, you can do so via a share dealing account.
Why did Uber list on the stock market?
Uber listed on the stock market because the board agreed that Uber already had all the disadvantages of being a public company without being able to enjoy the advantages. The IPO was an opportunity to raise capital and expand the business, and also boost Uber’s reputation.
Read more about why Uber listed on the stock market
Who are Uber’s main investors?
Uber’s main investors are PayPal, the Toyota Motor Company, Amazon founder and CEO Jeff Bezos, Fidelity Investments, SoftBank and Tencent Music. The business also receives funding from hundreds of corporate and individual investors, and thousands of shareholders.
What do I need to know about Uber stock?
Uber stock is listed on the New York stock Exchange (NYSE) under the ticker UBER in May 2019. It closed its first trading day at $41.57 per share, giving the company a valuation of $69.7 billion.
By measure of taxi app market capitalisation, Uber is the market leader, beating the likes of Lyft. The business reported quarterly growth of more than 36% for its 2018/2019 financial year.
Uber has diversified its business over the years to include more than just its ride-hailing service. For example, its UberEats and UberFreight offerings also have an impact on the bottom line.
As at October 2019, the company hasn’t yet paid a dividend to shareholders. This may change depending on Uber’s profits in the years to come.
Who are Uber’s key personnel?
Uber has 13 senior executives that manage the company. The key players include:
| Dara Khosrowshahi | Chief ecxecutive officer |
| Nelson Chai | Cheif financial officer |
| Tony West | Chief legal officer |
| Nikki Krishnamurthy | Chief people officer |
| Manik Gupta | Chief product officer |
| Thuan Pham | Chief technology officer |
Uber also has a board of non-executive directors, which consists of nine members and includes Dara Khosrowshahi and former CEO Travis Kalanick.
What is the history of Uber and its share price?
Uber was born in 2009, when Travis Kalanick and Garrett Camp developed a smartphone app that enabled individuals to call a taxi. The company received its first major funding in 2010 – raising more than $1.25 million. A year later, Uber was launched internationally.
By 2014, taxi drivers from around the world were demonstrating against the unfair competition they believed Uber was creating. Uber remained resilient during this time, launching its popular UberEats offering.
More troubles were headed Uber’s way when rumours of a sexist work culture emerged in 2017. Further, it was being sued by Alphabet for allegedly stealing self-drive technology insights. Tensions were rising, and Kalanick resigned in the same year. Dara Khosrowshahi was appointed CEO of the business.
Uber has seen massive growth over the past few years – it has a presence in more than 60 countries and 400 cities. Its growth is also evident in its financial performance. Revenue for 2018 demonstrated a 43% year-on-year increase, while gross bookings were up 45%.
Uber listed in in 2019, floating at $45 a share. However, it faced tough market conditions on its first day of trading, closing at $41.57 This was mostly due to the Dow Jones’s reaction to President Trump’s commentary on the US-China trade agreement. Khosrowshahi stated that he is not concerned about the company’s valuation, and that the focus is on retaining its market share.
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1 Place 3+ trades on US shares in the previous month to qualify for the zero commission rate. Please note published rates are valid up to £25,000 notional value. See our full list of share dealing charges and fees.
2 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
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