Buy Uber Shares: Growth, Predictions and Target Price
Published: July 3, 2020 by Valentina
The explosive growth and constant controversy around this company has made it one of the most fascinating companies in the past decade. To buy Uber shares would seem like a good investment but there are some questions.
The company, founded in 2009, has grown rapidly until becoming the most popular private startup in the world.
But this is not enough to confirm that it is also a good investment for the future and in this guide we will explain why.
Not only that, we will go beyond the stock to dedicate time to another player on the field – often underestimated: the broker, the intermediary to invest.
First of all, brokers are not all the same, only those with a regular license should be taken into consideration, and that is what we are going to do.
Here is a short list of the best brokers (all with CySEC or FCA license) if you want to buy Uber shares safely. By choosing eToro, you can also make automatic investments.
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 10€
Min. Deposit: 250€
Min. Deposit: 100€
Min. Deposit: 250€
How Uber was born
The story of Uber begins in Paris in 2008. Two friends, Travis Kalanick and Garrett Camp, were attending the LeWeb, an annual technology conference, and it is said that the concept of Uber was born during one of those nights.
The two friends could not find a taxi and from there was born the initial idea of a timeshare limousine service that could be ordered through an app.
After the conference, the entrepreneurs separated, but when Camp returned to San Francisco, he continued to develop the idea and purchased the domain name UberCab.com.
In 2009, Camp convinced Kalanick to join him in UberCab. The service was tested in New York in early 2010 using only three cars and the official launch took place in May in San Francisco.
How to buy Uber shares
Buying Uber shares is not so difficult, even if it is a NYSE-listed asset; you just need a PC, an internet connection, and an online broker to invest.
The brokers we are talking about are authorized intermediaries that offer CFDs: contracts (regulated like ETFs or Futures) that follow the price of an asset allowing you to invest both upwards and downwards, without paying commissions.
But these CFD brokers are not all the same and there are some differences that deserve a closer look.
Buy Uber shares with the best brokers
First of all you must absolutely avoid brokers without a regular license, otherwise you risk being scammed and is definitely better not to experience this.
Licenses are issued by the control bodies of the respective countries, such as FCA in the UK.
In the next paragraphs, we will expose the characteristics of the best brokers to buy Uber shares. They are all authorized (by CySEC or FCA) and have these characteristics in common:
- You can invest both upwards and downwards and earn (if the forecast is correct) in any market scenario.
- No commissions charged.
- The minimum deposit does not exceed 250 euros
Now, let’s find out in detail the services offered by the best brokers on the market. The ones most suitable to invest in Uber shares in total safety:
eToro: Simplicity and Automatic Trading
eToro is the first broker that we offer. It is the most popular in the world and deserves to be explained in details.
Authorized by FCA, it can offer its services in the UK, but also in many other countries, thanks to its numerous licenses.
Its trading platform is really simple; below you can see an image, with the CFD of the Uber asset:
To invest, just click on the blue button, decide how much to invest in the operation and whether to buy or sell the asset.
Statistics, indicators, and graphics complete the platform which is appreciated even by the most demanding traders.
But these traders choose eToro especially for its automatic investment system: Copy Trading.
This feature patented by eToro allows you to copy the transactions of the best traders in the world (on eToro) in a totally automatic and free way.
To use Copy Trading just follow these simple steps:
- Register on eToro with the link at the end of the review
- In the section “people”, choose the traders you want to copy, based on their returns
- With a click, Copy Trading will do exactly the same operations of the chosen traders in your account.
- At this point, you will get the same returns as these trading experts (of course, in relation to your investment), without doing anything else.
Click here and choose which traders to copy
Both Copy Trading and “manual” trading can also be tested on a free Demo account, without risks thanks to the use of virtual money.
For more details you can read our full eToro review.
ForexTB: Trading Course and Free Signals
ForexTB is an innovative broker that is very appreciated for the free services offered to its users.
The license with which it operates throughout Europe is provided by CySEC.
ForexTB offers two different trading platforms, so as to satisfy every type of investor:
- The Web platform, very simple and available for any browser and device without downloading any software
- Metatrader 4, the most used trading software in the world, very technical and full of customizable tools and indicators
To support traders with little experience, ForexTB has created a very simple Trading Course (pdf), considered among the best basic courses ever for online trading. It can be downloaded for free at the link below:
To give practical help beyond the theoretical one, ForexTB offers to its investors Trading Signals for free, elaborated with the contribution of Trading Central.
These indications have a success rate of over 70% and to get them just click on the link below:
Trade.com: Free Training and Minimum Deposit
Trade is a broker who has made customer service its mission. For this reason, it has established on the market as one of the most reliable and safest intermediaries.
Registered with a FCA license, it operates in many countries beyond the UK.
Trade.com offers a very clear and simple platform. For the most demanding traders, however, there are a number of professional indicators and advanced charts.
Customer support starts with training. Trade.com has created a training area divided into levels: Basic, Intermediate and Advanced. In this way, every investor will find useful information.
The basic level offers with a very practical course on trading. Trade.com offers it for free and here is the link to download it:
The minimum deposit can discourage many inexperienced investors; in fact, Trade.com has reduced it to 100 euros, in order to offer a cheaper solution.
It is not necessary to invest real money immediately, you can “train” for free on the Demo account offered by Trade.com. It is identical to the real one, the only difference is that you invest virtual money.
If you want to know more, you can read our Trade.com review.
Buy Uber shares: Real-time quotes
Uber’s growth has been rapid but not without obstacles. In fact, the company had to overcome the struggles with taxi drivers, public transport, and with its own drivers, because of the fees and much more.
Despite that and the significant economic losses of the first few years, the company has grown considerably also thanks to important investments made by banks and private funds, reaching 14 billion in turnover in 2019.
Since its IPO, in May 2019, the multinational has suffered substantial losses even if its Uber Eats segment, which makes home deliveries, has recorded a 73% increase compared to last year.
Uber is investing millions of dollars in self-driving cars, sales, and marketing. But despite this, growth depends heavily on the regulations of individual states that still consider Uber a usurper of taxi licenses.
Uber is certainly an innovative startup so there are not many direct competitors in the same sector, or at least not so innovative. Mostly, there are simple apps that facilitate the booking of taxis, but not a real ecosystem that wants to revolutionize the market.
However, there is an exception, a true competitor of Uber has appeared on the stock market:
The other competitors are startups like Zoom and Pinterest or companies like Airbnb and Deliveroo, still waiting for an IPO.
Uber shares forum
In forums, you can often find tendentious and non-impartial information, but it is important to understand which information is circulating, because many investors mistakenly rely on online forums to ask for advice.
Even in forums, the defectious Uber’s business model, which cannot be easily solved, is evident,
The driver problem can eventually be solved by fully autonomous vehicles (which is still in the experimental phase). The question is whether the time to reach this goal is too rough to keep investors interested.
Buy Uber shares: Forecast
“A self-sufficient company no longer relies on new capital or investors to continue growing, expanding, and innovating”
said Uber CEO, Dara Khosrowshahi, in an internal message.
This means that Uber is attempting a change of course, trying to cut costs and expecting to save $ 1 billion thanks to these operations.
Uber was considering the $ 6 billion acquisition of GrubHub to expand its fast-growing Uber Eats, but GrubHub appears to have rejected the initial offer.
However, the forecast is positive for this innovative startup. Uber is a company capable of rapidly changing its goals and core business and this draws new investors who understand the potential of such an agile tech company and the advantage of buying Uber shares at these prices.
Uber shares target price
EToro Trading Desk analysts issued purchase ratings for Uber Technologies.
Their twelve-month average target price is $ 42.24, suggesting that the stock could grow 21.26% in a year.
The tension between contract workers and Uber was inevitable. For Uber’s financial model to work, it needs a low-cost workforce that does not require an income guaranteed by the company.
Its workforce, however, is increasingly disinterested in providing cheap labor (and materials) and this is an obstacle that slows down the company’s expectations for sustainable growth.
Despite this, as we have seen, Uber can transform very quickly, is dynamic, and invests in ideas. So buying Uber shares is a good investment for eToro analysts, at least as long as prices remain below historic highs.
To learn how to invest, it is better to use the Demo version on one of the accounts offered by the brokers that we have selected, so you can evaluate strategies and intermediaries without risking money. Here are the official links to register:
- Access the eToro Demo account for free by clicking here
- Register for free on ForexTB and access the Demo account from this link
- Access the Trade.com Demo account for free by clicking here
It is a startup born in San Francisco in 2009 as a rental service with driver.
Yes, Uber is currently changing especially in order to support growth and Uber Eats is an example.
Brokers offering CFDs are the easiest and cheapest intermediaries to buy Uber shares without paying commissions.
The target price for a 12-month Uber share is $ 42.24