- Forex 40 +
Uber has been listed on the stock exchange since early May 2019. We took a closer look at Uber stock and its price target, and how to trade them. Uber is a driver service agent based in the United States. Uber’s core business is a transportation service via a smartphone app.
With this business model, Uber is directly attacking all taxi companies in almost every city globally. And that without owning a single vehicle or hiring a single driver. A radical but all the more successful business model. is it worth to Buy Uber Stock?
Here are a few things to look out for when buying Uber stocks:
What can the future of Uber stocks look like? We are looking at prices that will continue to rise sharply, especially if the tourism industry is revived after the pandemic.
In order to be able to buy the Uber share, you first have to register with a broker. It is advisable to pay particular attention to deposit protection; the shares still belong to you if the broker goes bankrupt. Anyone who waives this deposit protection will be left without shares in the event of the broker’s bankruptcy.
If stock selection and evaluation are too complicated, a social trading platform can also be a good solution. Here you follow an experienced trader and automatically copy the trader’s trading decisions.
Our broker recommendation at this point is Roinvesting – with state-guaranteed deposit protection of up to 20,000 euros and 0% commission when buying shares, Roinvesting is our test winner broker. To register with Roinvesting, click here.
If you have decided on a broker, you log in with your data and verify your email address as well as any other data.
After registering, you need to decide how much to invest in stocks. We generally recommend that you never invest more than 5% of your capital in a single share.
Once you have decided on the amount you want to invest, click on the ” Add Money ” button after you have registered with Roinvesting.
You can now choose from various deposit methods, including PayPal, credit card or bank transfer.
Below is an overview of all the payment methods available at Roinvesting:
|Buy Uber stocks with credit card||✔️|
|Buy Uber stocks with PayPal||✔️|
|Buy Uber stocks with Skrill||✔️|
|Buy Uber stocks using wire transfer||✔️|
|Buy Uber stocks with Neteller||✔️|
|Buy Uber stocks with UnionPay||✔️|
Now that your money has arrived enter the name of the stock you want to buy in the search field at the top. Then press the blue “Trade” button in the upper right corner.
A small window will open where you can set the price and number of shares you want to buy. You can also set stop loss and take profit, i.e. at which price the share should be sold again in the event of a profit or loss. The two fields are optional.
The Leverage field allows you to control whether you want to buy the real share (x1 leverage) or a CFD (x2 or more leverage).
With a click on ” Place order ” the purchase is completed, and the share appears in your portfolio.
Until May 2019, you could only speculate about the Uber rate. See above for stock prices. However, the estimated goodwill of Uber can currently be analyzed as an important metric, which, according to various analysts, is well over 50 billion US dollars because the last round of financing had already brought in a valuation of 50 billion US dollars for Uber.
And it can be assumed that investors can only be satisfied with an even higher price. There is also a lot to suggest that this value is not exaggerated. After all, the company already had sales of 6.5 billion US dollars in 2016. And only in the seventh year since the group was founded. The Uber stock price will show how future technology and emerging competition will add value.
With its IPO, Uber entered the NASDAQ trading floor as a new technology giant. There has never been a similarly highly rated IPO. Alibaba comes closest to the theoretically assumed value of 50 billion with just over 21 billion USD. For example, to draw a comparison, Facebook was valued at just over 16 billion US dollars when it went public, but it was already in 2012. Uber does not pay a dividend.
However, before buying Uber stocks or opening CFD positions, you should consider how much money you should put into the investment. This decision must be in line with your personal equity strategy. Overall, it’s clear that Uber stocks are a rather speculative asset. For this reason, you shouldn’t put too many Uber stocks in your portfolio.
In general, when investing in stocks, you should diversify your capital as well as possible. It is advisable to never put more than 10% of the total investment in a single asset – at least not in a share. Depending on how much risk you are willing to take, you can weigh speculative stocks like Uber more or less. Basically, you can minimize the likelihood of suffering heavy losses in this way. Because even if a speculative position should lose significantly, this only affects a maximum of 10% per cent of the total invested.
You should also consider in advance which industries you want to invest in. If you intend to create several economic segments in the depot, weighting them in advance helps a lot to minimize the risks. This percentage distribution of the depot can then be adjusted annually or quarterly so that the overall strategy is retained.
What about the pros and cons of Uber stocks in real-time? Well, with Uber stocks, you will soon be able to invest in a company that has turned an entire industry upside down. In the US and Europe, Uber is the undisputed leader in passenger transportation. Only in Asia did they have to cut back because similar services from China and Indonesia have already been established here.
A good reason why the Uber stock could start successfully in real-time is the global market penetration of this company. In a short time, Uber was able to launch its services almost anywhere in the world, and thanks to its extremely competitive prices, it was able to gain large market shares. The Uber Aktien Forum knows about these strengths.
Uber could represent a possible hurdle to sustainable success with the slowly increasing obstacles in individual states. In Austria, for example, a law was recently passed that makes business much more difficult. In this regard, the company’s development can be compared to Airbnb. Airbnb has targeted the hotel industry with a similar business model. And there, too, there are increasing political interventions aimed at protecting the state’s own tourism industry.
And this is also what happens with Uber: Because the countries have not yet found a means to participate in the enormous Uber profits. After all, corporations like Uber only have to pay taxes in their own countries. And in most cases, not even there. From quarterly reports such as Google, we know that the money earned in Silicon Valley mostly trickles into tax havens. This is also discussed in the Uber Stock Forum.
Various circumstances make it more difficult for Uber to make its business model a success. Especially when it is prevented that Uber can undercut the price of local transport services. The bottom line is that these problems, which the company could encounter in the future, are probably not too difficult to weight.
Selling the share at an early stage must not ignore the fact that many other business areas of the transport service provider are in their infancy with Uber Eats, self-driving cars, etc. When looking at the pros and cons of Uber, the optimists are therefore overweight. On the other hand, there is also euphoria in the Uber Aktien Forum about the group.
The Uber share news is often written in a sensationalist way. The company, which arranges personal transfers, is based in San Francisco and was founded in 2009. The most astonishing is the current valuation of all Uber shares on the investments: The last financing round has a valuation of more than 50 – billion US- Dollars brought. Uber, led by Dara Khosrowshahi (CEO) and Garrett Camp (Chairman), achieved sales of 6.5 billion US dollars in 2016. So these figures show that this assessment is justified.
Uber was originally founded as a limousine service. But the success set in so quickly that one-way trips were soon offered. As early as 2014, the company rose to the ranks of the “unicorns”, i.e. those companies that are valued at more than 1 billion dollars. After only 5 years since it was founded, this is an amazing development that very few companies had made before.
In 2016, the app was already represented in more than 470 cities, including numerous cities in SouthAfrica. The company’s success has since seemed unstoppable, although difficulties arose in several areas. With the success and the significantly lower prices compared to competing companies, which in most cases were taxi companies in the respective cities, political resistance increased. In Austria, for example, Uber is not allowed to offer prices below the minimum tariffs for taxis.
We compare the fees of the largest brokers with the following example:
With these assumptions, we now compare the fees of Libertex, Roinvesting & Plus500 :
|Deposit||for free||For free||for free|
|Purchase fees||€ 2.20||free||3.08%|
|Holding fees||for free||free||0.05%|
|Sales charges||€ 2.20||Spreads||3.08%|
|Total fees||€ 4.40||Reasonable||€ 92.32|
Let’s make an Uber stock prediction: should we now produce an Uber investment in 2020? Another milestone for Uber came with the IPO in 2019. This will likely bring a valuation of well over 50 billion US dollars. There has never been a major IPO in the history of the global stock exchange. No wonder, then, that many shareholders and business experts are looking forward to this event with great interest.
In view of the sensational development that Uber has made in the few years since its inception, one must also be optimistic that the IPO will be successful.
And not least because you also seem to be excellently equipped for the future. Uber, for example, operates one of the most progressive programs in terms of self-driving cars. Should Uber receive approval for this service, the costs for using the service would fall significantly again. But, unfortunately, for the big competition, the taxi industry, this would probably mean a quick end.
Such a scenario is unlikely to be expected this year. However, the imagination of this next approaching step is sure to give this stock a lot of tailwinds. The Uber key figures should therefore ensure a positive mood in the first year of the stock market. You shouldn’t expect anything about dividends, however. The Uber share forecast for 2021 is, therefore, very positive overall.
As the Uber share forecast shows, the group is likely to cause a lot of furore in 2020 as well. And this stock will be an interesting, albeit speculative, position from the start. Because Uber is excellently positioned in the USA and Europe and works with almost no competition. Only political resistance could put certain obstacles in the way of the San Francisco company.
But the prospects for the future more than compensate for these potential price detractors: In the field of self-driving cars, Uber is one of the companies that is achieving the most progressive results. Should this be approved, this would be another good reason for an Uber investment. And the already high Uber profits speak for it. So the Uber story seems to continue to be a successful one.
Uber stocks are now to be traded, so investors naturally wonder if they should expect a dividend. However, experts suspect that there will probably be no Uber dividend for the time being. Because the CEO is more inclined to reinvest Uber profits than to pay them out to their investors.
It is still unclear whether there will be an Uber dividend. However, this is unlikely.
The IPO for Uber took place in May 2019. This listed on the NASDAQ. There has only been an Uber course since the stock market launch.
The article introduces a few ways you can get your own Uber stock quickly. If you do not want to purchase the share directly, you also have the option of using CFDs to bet on rising or falling prices.
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