This is a step-by-step stock review to answer the question, is Uber Technologies (UBER) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Uber Technologies (UBER) stock a good buy?
- Uber Technologies Company History
- MOS
- Meaning
- Moat
- Management
- 4M Score
- Is Uber Technologies (UBER) stock a good buy?
1. Uber Technologies Company History
- Founded in 2009: Uber Technologies was established by Garrett Camp and Travis Kalanick in San Francisco, California, as a ride-sharing app to connect riders with drivers.
- Launch of UberX: In 2012, Uber introduced UberX, a more affordable ride option that significantly broadened its market appeal.
- International Expansion: By 2014, Uber expanded internationally, launching services in cities around the world, rapidly becoming a global brand.
- IPO: Uber went public on the New York Stock Exchange in May 2019, marking one of the largest tech IPOs in history.
- Diversification: The company diversified its services with Uber Eats for food delivery, Uber Freight for logistics, and autonomous vehicle projects.
- Challenges and Adjustments: Uber faced regulatory hurdles, legal challenges, and competitive pressures, leading to various strategic adjustments and leadership changes.
- Current Focus: Uber continues to innovate in mobility solutions, focusing on expanding its platform with new technologies, partnerships, and sustainable practices to shape the future of transportation.
2. MOS (Margin Of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: Watch
- Score: 67
- MOS: 43%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Uber Technologies makes money:
- Ride-Sharing Fees: Uber makes money by taking a commission from each ride booked through its platform, which is paid by both riders and drivers.
- Uber Eats: Revenue comes from delivery fees and commissions on food orders placed through its Uber Eats service.
- Freight Services: Uber generates income by connecting shippers with truck drivers through its Uber Freight platform, earning fees and commissions on each shipment.
- Subscriptions: The company earns money from subscription services like Uber Pass and Uber One, which offer benefits and discounts to users.
- Vehicle Leasing: Uber makes money from leasing vehicles to drivers through its Uber Rental program.
- Advertising: Revenue is also generated from advertising and promotional partnerships within the Uber app and platform.
- Autonomous Vehicles: While still in development, Uber aims to generate future income from self-driving technology and autonomous vehicle services.
- Careem
- Uber Eats
- Drizly
- Mellow
- Route Match
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Uber Technologies stacks up against other companies.
- Paycom Software, Inc.(PAYC) – 89
- Diebold Nixdorf, Incorporated.(DBD) – 78
- ServiceNow, Inc.(NOW) – 78
- OppFi Inc.(OPFI) – 78
- DoubleVerify Holdings, Inc.(DV) – 78
- Uber Technologies, Inc.(UBER) – 67
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Leadership Transition: Dara Khosrowshahi became CEO of Uber in August 2017, guiding the company through a crucial period of stabilization and strategic redirection.
- Expansion of Uber Eats: Under his leadership, Uber Eats significantly expanded globally, becoming a major player in the food delivery market.
- Acquisition of Postmates: Khosrowshahi oversaw the acquisition of Postmates in 2020, strengthening Uber Eats’ market position.
- Regulatory Success: He successfully navigated various regulatory challenges and legal battles, including achieving a favorable ruling in California with Proposition 22.
- Profitability Progress: Khosrowshahi led efforts to improve Uber’s financial health, focusing on reducing losses and moving towards profitability.
- Focus on Diversification: He advanced Uber’s diversification strategy, including growth in freight services and the development of autonomous vehicle technologies.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Uber Technologies (UBER) is 68/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Uber Technologies (UBER) stock a good buy?
Some of the top questions investors can have is Uber Technologies (UBER) stock a good buy or should I buy Uber Technologies (UBER) stock?
Investing in Uber Technologies can be appealing due to its dominant position in the ride-sharing and food delivery markets. Uber’s strong global brand and expanding services, including Uber Eats and freight, offer growth potential. The company has made strides in profitability and technology, such as autonomous driving.
However, risks include regulatory challenges, high competition, and market volatility. Uber faces ongoing scrutiny from governments and legal issues, which could impact its financial performance. Additionally, its business model relies heavily on gig workers, leading to potential labor disputes.
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To truly know if Uber Technologies is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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