Uber: Sleeping Giant or Risk?

Early Bird Prime for June 30, 2024

Uber Technologies (NYSE: UBER) was a big winner in the first half of 2024. After years of burning through cash, Uber has finally turned a profit. 

Yes, you read that right. The company that once seemed destined to be the poster child for "how not to run a business" has shown substantial improvement in operating margins and became, drumroll please, profitable!

The stock is up 24.49% this year, including an 11.94% gain in the last 30 days. 

This past week, Piper Sandler reiterated a Buy rating on Uber with a price target of $88, up from $86. Piper Sandler called the stock “a sleeping giant” because of the company’s ability to potentially scale ad revenue in the Uber app.

Yet, there are many warning signs to sell or stay away from Uber.

Uber faces ongoing tensions with its drivers who feel the company lacks transparency and fairness in its pay policies. And let’s not forget the evolving regulations regarding worker classification and rights.

Plus, Uber’s stock is grossly overvalued. Some analysts argue that the current stock price is inflated.

Should you invest in Uber now or not? Well, here’s the answer…

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