84% Profit On Uber — Uber Is An Artificial Intelligence Play

Signal(s) to enter, add, reduce, exit, hold or change.

Uber Technologies Inc UBER is long from $25.58.  In the premarket, UBER traded as high as $52.71 but since then, it has pulled back to $47.02.  At $47.02, there is an 84% gain.

UBER is in the core Model Portfolio.

The Chart

Please click here for a chart of UBER. Note the following:

• The chart shows the Arora buy zone.
• The chart demonstrates the advantage of using Arora buy zones in making great profits.  Buy zones are a technique used by billionaires and hedge funds.  You too can easily learn this technique by following the Trade Management Guidelines provided by The Arora Report.
• The chart shows the significant move up from the Arora buy zone and the resulting profits.
• No worries if you missed buying in the buy zone. The Arora Report is always updating the buy zone.
• The chart shows the trendline.  The strong trendline is, in part, the result of recognition that UBER is a beneficiary of artificial intelligence.

The News

The news is that UBER has turned profitable on GAAP basis.

UBER's earnings came at $0.18 per share vs. consensus of a loss of $0.01 per share.

Revenues came slightly short at $9.23B vs. $9.34 consensus.

Gross bookings rose 16% year-over-year.

UBER intends to maintain profitability every quarter going forward.

Price Move

The price move down this morning after earnings is simply profit taking on good earnings.  'Sell the news' is a common reaction in the stock market.

Artificial Intelligence

UBER will benefit from artificial intelligence.  Artificial intelligence is at the core of autonomous driving.  UBER will become extremely profitable when autonomous driving becomes a reality.   UBER is a solid pick to profit from AI outside of the magnificent seven stocks. The magnificent seven stocks are Apple Inc AAPL, Amazon.com Inc AMZN, Alphabet Inc Class C GOOG, Meta Platforms Inc META, Microsoft Corp MSFT, Nvidia Corp NVDA, and Tesla Inc TSLA.

Zones

The key to consistently beating the market is to become sophisticated.  The Good Way is a great step towards ultimately using the Best Way if you are in the process of becoming sophisticated.

For those who are following the Good Way, the Buy Now rating is NO.

For those following the Best Way, the buy zone is 🔒.  To see the locked content, please click here to start a free trial.

The recommended quantity is 25% - 40%.

The very long term target is $76 - $83.

Trade Around Position

There is a high probability that a signal will be given for a trade around position.  A trade around position is a billionaire and hedge fund technique that can dramatically increase your profits and reduce your risks.

The Competitor — LYFT

UBER has pulled far away from competitor LYFT Inc LYFT.  There are reports that in many markets, UBER is cheaper than LYFT and rides come quicker on UBER compared to LYFT.

UBER is highly diversified across the world.  LYFT is only in the U.S.  In addition to rides, UBER also has Uber Eats and Uber Freight.  LYFT has only rides.

On the positive side, LYFT has a new CEO who is an ex-Amazon executive.

What To Do Now

Those in the stock may consider continuing to hold and increasing the position size on any dip in the buy zone.

Those not in the stock may consider following the parameters given above.