Uber sell off was harsh. Fundamentally was a strong showing, mostly Q1 bookings was hurt only by a strong USD. Added $5b to net income yet down hard. makes no sense. Flow was mixed yday but all the big orders were bullish, notable put selling and call buying.
Short term, the stock continues to struggle with this IMO incorrect notion that they cannot compete in the Robotaxi narrative. However, the long term trajectory of this company remains robust.
- Revenue +20% YoY
- EPS +386%
- Bookings +18%
- Mobility +18%
- Delivery +18%
- EBITDA +44%
- Net Income $6.88B vs $1.43B YoY
In reality, UBER will leverage both cheaper EVs and smarter ADAS
It can optimize vehicle size/speed/trim down to cents on the mile and can plan a rollout campaign by neighbourhood, city, state, country and region.
Primarily, UBER was trading down because of USD strength really - their Q1 bookings guide assumes 5.5% negative FX impact. The numbers are really pretty solid beyond that.
After all, they had a net income increase of 5B, and yet the market is selling it off.
IMO the market has this one wrong.
Let's review the chart and positioning:
IMO it is a solid long term add, but it lost that breakout retest around 65.
Strong support zone is in that purple area:
Anything around there is a buy for a bounce, but IDK if we make it that low. Let's see.
Positioning analysis:
We see traders still hold those 70 calls pretty strong.
The put delta at 65 will be a resistance so ned to stay above this.
Below 60, put delta drops off hence a sign of support.
The flow:
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