How to Buy Uber (UBER) Stock

Uber's pickup in stock price proves that ridesharing won't go away anytime soon. The COVID-19 pandemic crippled the industry, though food delivery limited losses in 2020.

Uber just pulled its best month since March 2020 — $30 billion, up 9% from a month ago. Uber's delivery unit reached a record annual run rate of $52 billion in March, which more than doubled from the previous year.

How to Buy UBER Stock

You can own a part of UBER by buying UBER (NYSE: UBER) stock on its own or in a fund. Although some companies offer direct stock purchase plans, UBER stock is only offered via a stock exchange. You’ll need an account at a brokerage firm to buy on a stock exchange, but you’ll find that setting up an account to trade is fast and easy.

Many brokerage accounts have no minimum funding requirements, although others with more sophisticated platforms such as Tradestation require a $2,000 deposit to open. Once you open an account, you can easily transfer money via ACH or other methods.

Step 1: Pick a Brokerage

It’s easy to set up and fund your own online brokerage account from the many choices available. Choose one, set it up in 10 minutes or less, fund it electronically from your bank account and buy shares of UBER or other stock. Setup is simple and straightforward; it is no harder to set up a brokerage account than it is to sign up for Spotify (NYSE: SPOT).

Which brokerage is best for you? Benzinga’s detailed comparisons can help you narrow down the optimal trading platform to go with.

Step 2: Decide How Many Shares You Want

Deciding how many shares to buy, also called “position size,” is a tough call. Sometimes stocks careen wildly up (Gamestop in 2020), but they usually creep up slowly over time. Researching UBER and other stocks in its sector can help you decide how many shares to buy. See Researching Investments.

If you buy 5 shares of UBER at $50, and if UBER goes to $70, you’re making $100 (5 x $70 = $350 minus 5 x 50 = $250 or $100). However, it could take months or years for UBER to get to a price of $70, and it may never get there, so you’ve tied up $250 that could be invested elsewhere waiting for 1 stock to appreciate and maybe make you $100.

Up that position size to 500 shares at $50, and if UBER hits $70, you’re up $10,000. That would be a sweet gain, but if UBER dropped to a price of $30, your loss would be sobering.

You could also buy shares of UBER as one of the stocks held in an exchange-traded fund (ETF). You buy and sell ETFs just like a stock; an ETF has its own ticker symbol and price.

However, UBER stock would be just one of many stocks in the ETF. ETF holdings change, so at some point, that ETF may not hold UBER, or it may increase its position in UBER. For example, right the ETF with the ticker symbol VTI holds almost $6 million shares of UBER.

Step 3: Choose Your Order Type

You are ready to buy some UBER. Each online brokerage firm’s trading site looks slightly different, but the concept to purchase is the same. Find the tab that says “Trade” or “Buy & Sell” or a similar choice. Enter the ticker symbol in the box for symbols.

To buy Uber stock, you type in the ticker symbol “UBER.” If you don’t know the ticker symbol for a stock, your brokerage firm will find it for you if you type in the company name. You’ll see the price and volume. Choose “Buy” in the “Action” or “Trade” box and type in the number of shares or quantity of shares.

You have several choices about price type.

Market Orders

If you choose Market or Market on Close, you are telling the brokerage house to buy UBER at any price the market is offering at the moment the broker places your order. Market orders usually fill immediately and for the full amount of shares you choose because you accept any price the market sets at the time you place your order.

Limit Orders

Limit orders specify a specific price. For example, if you see UBER trading at $52 and you think it will go down to $51, you could put in a limit order at $51. The broker will only fill your order at a stock of $51.

Other Types of Orders

Traders set other types of orders, too, based on their belief that a stock will go up or down and when it might make those moves. Stop orders, trailing stop orders, stop on quote orders and others can help you buy with more precision.

Duration

You also choose a duration such as good for the day, good until canceled (GTC), good until a certain day, fill or kill, or other options. These tell the brokerage how long to honor your buy request. Some of the options are limited based on the type of order you designate. Market orders offer you only that-day-order choices whereas limit orders have more duration options.

If you place a GTC limit order for UBER stock at $50, the brokerage will keep trying to buy UBER for you at $50 until you go back in and cancel the order or until the order is filled at $50 per share.

Step 4: Execute Your Trade

You’re ready. You are all set to buy 50 shares of UBER at a limit price of $51. Preview your order, check its accuracy, and then hit the button to buy. A market order will probably fill right away, but the limit and other orders may take some time or may never fill if your specified price isn’t reached.

What if you change your mind? If you place your order and it hasn’t filled, you can cancel it.

Once you’ve bought the stock, that’s it. You own UBER. When you watch the price of UBER rise above what you paid for it, you know you are making your money work for you. It’s a great feeling. Conversely, if you place a market order for 100 shares of UBER that fills at $52 per share and then half an hour later UBER drops to $50, you own it at $52 and you can’t change that.

If you place a limit order at $50 because you think UBER will drop a bit, perhaps on a down day, you likely won’t end up owning the stock unless UBER does drop to $50 and there are enough sellers to fill your 100-share order at $50.

When you place orders other than market orders, you may not buy all the shares you’ve requested at one time. Our 100-share order of UBER at $50 may be filled at first with 32 shares, then 25 shares, then finally completed with 43 shares.

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Uber Stock and History

Uber Technologies, Inc. started in 2009 as a rideshare app. It has since grown into a major tech company. Uber uses advanced technology and a unique business model. This has changed how people move in cities. The company has faced rapid growth and many challenges. It is now expanding into delivery services and autonomous vehicles. Investors need to understand Uber's stock performance and valuation trends. This overview will examine Uber's stock journey and key milestones. It will highlight the factors that have influenced its growth.

All About Uber

Uber Technologies, Inc. is a leading technology platform that changes transportation and delivery services. Founded in 2009, Uber makes it easy to book rides with a simple app. The company has three main segments: Mobility, which connects riders with drivers; Delivery, which handles food and package deliveries through Uber Eats; and Freight, which provides logistics solutions to businesses. Uber focuses on making transportation more convenient and efficient with its advanced technology. The company is also investing in partnerships for autonomous vehicles. This aims to reshape transportation and encourage sustainable growth. With its varied offerings and innovative approach, Uber stays at the forefront of the Mobility and Delivery sectors.

UBER Stock History

UBER is one of those stocks you buy because you know it. If you are looking to buy UBER, the snowy night in Paris story is as familiar to you as Good Night Moon. By May 2017, UBER had reached 5 billion rides. Eleven years after their big idea, founders Travis Kalanick and Garrett Camp took UBER public, and you could finally buy it. UBER IPO’d at $45 per share and started trading at $42 per share on the New York Stock Exchange the next day. UBER hit its high to date of $64.05 on February 11, 2021 and its low of $23.79 on April 3, 2020. Those boundaries do not mean that UBER will never go lower or higher than those prices, but it shows the range that the stock has already traversed in its short public life.

Analysts’ average price target for UBER in March 2021 is about $72. When you see analyst targets, it doesn’t mean that the stock price will for sure reach that height or sink to that depth; the price is a projection based on an analyst’s review of the company’s numbers, the sector, the economy, and many other factors. Price targets are useful but not a guarantee of the stock’s eventual price.

Why Should You Buy Uber Stock?

Investing in Uber stock can be a good opportunity for both new and experienced investors. The company is changing transportation and delivery services worldwide. Since it started, Uber has changed how people travel and has also moved into food delivery and freight logistics. With a growing number of users and valuable partnerships, Uber is ready to take advantage of market trends. As more people move to cities and prefer convenience, the demand for Uber’s services is likely to rise. Understanding the benefits of investing in Uber stock is important for anyone looking to make smart financial choices.

Growth Potential

Uber is expanding its services beyond traditional ridesharing. The company has initiatives like Uber Eats for food delivery and Uber Freight for logistics. This diversification helps Uber reach a broader audience. It also allows the company to take advantage of emerging trends, such as the growing demand for convenient delivery services. As more consumers use app-based services, Uber is positioned to grow in urban areas and beyond. This enhances its overall market presence.

Market Leadership

Uber is a leader in both the rideshare and food delivery industries. It has strong brand recognition and loyalty among users. This leadership helps retain customers and attract new ones looking for reliable transportation and delivery options. Uber has millions of active users worldwide, giving it a competitive edge that smaller companies find difficult to match. Additionally, Uber has established infrastructure and partnerships. This allows the company to respond quickly to market changes, strengthening its position as a trusted provider in the gig economy.

Diversification and Innovation

Uber is investing in new technologies. These technologies could change transportation and delivery. The company is exploring autonomous vehicles, electric bikes, and aerial ridesharing. Uber hopes to diversify its revenue streams. These innovations may lower operational costs and improve efficiency. They could also enhance service offerings. Additionally, these advancements might position Uber as a leader in transportation. This focus could promote long-term profitability and sustainability, especially as consumers prefer eco-friendly solutions.

Considerations Before Buying Uber Stock

Investing in Uber stock can be an enticing opportunity for those looking to participate in the rapidly evolving transportation and technology sectors. However, potential investors should approach this decision with careful consideration of various factors that can significantly impact their investment outcomes. Understanding the company's financial health, market position, competitive landscape, and regulatory challenges is essential before purchasing shares. Additionally, awareness of broader economic conditions and market trends can influence Uber's performance. As with any investment, evaluating your own risk tolerance and investment goals is crucial. In the following sections, we will delve into key considerations that can help prospective investors make informed decisions before buying Uber stock.

Financial Performance

Uber has made a strong recovery from its cash burn. By 2023, it generated $3.6 billion in cash from operations. This shows the company's financial strength and good management. With this solid foundation, Uber expects revenue growth to continue. It projects cash flow to exceed $20 billion by 2033. Free cash flow looks promising as well, with strong returns expected through 2028. This free cash flow indicates operational efficiency and opens up chances for strategic investments. The company may also issue dividends to enhance shareholder value. Additionally, Uber's financial strategy could include acquisitions to strengthen its market position and diversify its offerings. As it continues to compete, Uber's focus on cash flow and financial prudence will be key in maintaining its leadership in ride-sharing and delivery services.

Market Competition

The competitive landscape in the ridesharing and food delivery sectors is dynamic and rapidly evolving. Key rivals such as Lyft and DoorDash pose significant challenges to Uber’s market position. It is important to consider how these competitors are performing and their strategies, as shifts in market dynamics can directly affect Uber's market share. For instance, if a rival introduces innovative features or aggressive pricing strategies, it could pressure Uber to adjust its own pricing and service offerings to remain competitive. Furthermore, monitoring trends in consumer preferences and behavior, as well as potential new entrants in the market, is crucial for understanding the competitive threats that may arise and how they could impact Uber's growth trajectory and profitability.

Regulatory Environment

The regulatory environment is complex. Key laws govern operations, safety, and environmental impact. In industries like pharmaceuticals, energy, and manufacturing, important laws include the Clean Air Act, the Occupational Safety and Health Act, and the Resource Conservation and Recovery Act. These laws provide strict guidelines for safety and protection of the environment. Regulatory bodies such as the EPA, OSHA, and FDA enforce these laws. Companies must comply to avoid penalties and ensure safety. Compliance can be costly and requires investments in training, equipment upgrades, and eco-friendly practices. However, meeting regulations leads to safer workplaces and reduced environmental harm. It helps align business goals with public health and sustainability.

Is UBER Stock Right for You?

When thinking about whether Uber stock is a good fit for you, it's important to assess a few key factors. Uber is a major player in the ride-hailing market with a strong global presence, and its services go beyond just rides. The company has branched out into food delivery (Uber Eats), freight services, and other transportation options, which may enhance its growth potential.

Present advice indicates that investors, especially those focused on long-term growth, should consider holding or accumulating Uber stock. Nonetheless, it is important to evaluate the associated investment risks. Uber contends with competition, regulatory hurdles, and the necessity to attain ongoing profitability, all of which can affect its stock performance.

Investors need to consider the advantages of Uber's various services alongside the associated risks, especially since the company is constantly innovating and adjusting to a competitive environment. It's important to clarify your investment objectives and risk tolerance before investing. In summary, if you're looking for a prominent company with growth potential and are aware of the risks, Uber may be a suitable option to think about.

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