UBER Technologies -undervalued
Technical analysis
Fundamental analysis by MorningStar Analysts
On Dec. 24 Uber announced: Travis Kalanick, Uber's co-founder, will no longer be on the board of the company at the start of 2020.
Kalanick has sold nearly 95% of his holdings in Uber since the firm’s IPO lockup expired on Nov. 6. In comparison, Uber’s other co-founder, Garrett Camp, has sold only around 12% of his Uber stock.
Kalanick being pushed out could benefit the stock in two ways:
1. Without the presence of Kalanick on the firm’s board, Uber’s reputation could improve a bit more quickly as Kalanick’s missteps, which included ignoring the company’s culture of sexual misconduct and not addressing accusations of internal racial discrimination, tainted the firm’s name and may have helped Lyft gain market share.
2. Kalanick’s continued sale of his holdings likely pressured the stock since Nov. 6. From then through today, we estimate that Kalanick’s trades on average represented around 7% of the stock’s average daily trading volume. Without such pressure, the stock could trade higher toward the firm’s $45 IPO price and possibly our $58 fair value estimate. Of course, the stock’s performance will be based mainly on the firm’s progress toward GAAP profitability, which we have projected will be in 2024.
- DI+ > DI- cross was made on December 16. Since then, we have stayed above the 50sma.
- Since the IPO lock-up (November 6th), OBV has trended upwards on higher highs; RSI is following as well.
Fundamental analysis by MorningStar Analysts
On Dec. 24 Uber announced: Travis Kalanick, Uber's co-founder, will no longer be on the board of the company at the start of 2020.
Kalanick has sold nearly 95% of his holdings in Uber since the firm’s IPO lockup expired on Nov. 6. In comparison, Uber’s other co-founder, Garrett Camp, has sold only around 12% of his Uber stock.
Kalanick being pushed out could benefit the stock in two ways:
1. Without the presence of Kalanick on the firm’s board, Uber’s reputation could improve a bit more quickly as Kalanick’s missteps, which included ignoring the company’s culture of sexual misconduct and not addressing accusations of internal racial discrimination, tainted the firm’s name and may have helped Lyft gain market share.
2. Kalanick’s continued sale of his holdings likely pressured the stock since Nov. 6. From then through today, we estimate that Kalanick’s trades on average represented around 7% of the stock’s average daily trading volume. Without such pressure, the stock could trade higher toward the firm’s $45 IPO price and possibly our $58 fair value estimate. Of course, the stock’s performance will be based mainly on the firm’s progress toward GAAP profitability, which we have projected will be in 2024.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.