PreMarket Prep Stock Of The Day: Uber

Benzinga's PreMarket Prep airs every morning from 8-9 a.m. ET. During that fast-paced, highly informative hour, traders and investors tune in to get the major news of the day, the catalysts behind those moves and the corresponding price action for the upcoming session.

On any given day, the show will cover at least 20 stocks determined by co-hosts Joel Elconin and Dennis Dick along with producer Spencer Israel.

Since going public in May 2019, Uber Inc. UBER has never posted a positive EPS number. Yet it posted its smallest EPS loss in the fourth quarter and traded to a new all-time high in Thursday’s sesson, making it the PreMarket Prep Stock of the Day.

Uber's IPO Euphoria Fades: Uber made its debut on Wall Street in May 10, 2019 at $42, reached $45 on the first day of trading before retreating to end that session at $41.57. 

The following session, the bottom out and Uber skidded to $36.08, rebounding to close the session at $37.10.

That low provided a base for the issue to rebound and make a new all-time high in July 2019 at $47.04. In August of that year, it breached the initial low and did not bottom until November at $25.58.

Uber On The Rebound Until Pandemic: By February 2020, Uber came with pennies of its opening price, rallying to $41.86. 

It followed the market lower and ended the month at $33.87.

The decline continued and far exceeded the November 2019 low. Uber bottomed a few days ahead of the S&P 500 index on March 18 at the bargain price of $13.71.

Uber Rally Stalls Out At $39 Until November: By June 2020, Uber rallied to $38.78, but could not sustain the gains as the pandemic progressed.

Investors were give the chance to purchase the issue under $30 in July and August before it rebounded once again.

The pesky $39 area capped the rallies in September and October. 

It was finally about to break out on “vaccine Monday,” leaping from $35.77 to $40.99 and never looking back.

Uber ended that month at $49.66 and, after a pause in December and January, the rally resumed.

In fact, from its Jan. 27 bottom ($47.15), Uber added over $15 in the next 10 sessions to end Wednesday’s session at $63.18.

Uber's Q4 Report: After the close Wednesday, the company announced a fourth-quarter EPS beat by a penny and a sales miss of $415 million. 

In premarket trading Thursday, the issue swooned to $59.91, which brought the buyers in a big way. In a volatile session, it opened at $63.25 abd had a brief decline that found support just above Wednesday's low ($60.88) at $60.99 and mounted another rally.

As of noon, it has made a new all-time-high at $64.05 and was trying to remain in the $63 handle.

The stock was down 1.71% at $62.10 at last check. 

Uber Moving Forward: If Uber makes a new all-time high and closes above $63.18, it would mark a new all-time closing high that may signal higher prices to come. 

On the downside, if the the pair of lows just under $61 from Wednesday and Thursday are breached, there may be some profit-taking after Uber's extended pre-earnings rally.