Uber Could Win The ‘Robo Taxi War,’ Says Expert: Analyst Predicts 75% Gains On Ride Hailing Cost Drop – Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), SPDR S&P 500 (ARCA:SPY)
As Uber Technologies Inc. UBER is slated to report its first-quarter earnings on Wednesday, experts forecast robust metrics while predicting that it could potentially win the “robo taxi war”.
What Happened: The Chairman and Founder of Navellier & Associates, Louis Navellier, forecasts Uber’s sales to go up 14.6%, and earnings to go up 295.6%.
“There have been positive analyst revisions and a very good earnings surprise history,” according to him.
However, he remains optimistic about Volkswagen and Uber’s partnership. “They are entering the robo taxi business, it’ll be the VW buzz, and they’re backed by Volkswagen. So, we are about to have robo taxi wars,” he said.
Volkswagen and Uber have partnered to introduce thousands of autonomous ID. Buzz electric vans to Uber’s fleet. Starting in Los Angeles, the companies aim to expand the deployment of these self-driving electric vehicles to several U.S. markets over the next decade.
According to Navellier, “the ID Buzz is a very practical vehicle, it can hold a lot, and you will be able to order it on your phone, and they’re going to start it in Los Angeles because they want the media attention in a big urban area. So, when you think of Uber, don’t be surprised if they win the robo taxi war.”
Meanwhile, the managing partner, at the Future Fund LLC, Gary Black outlined in an X post that if Uber were to slash the ride hailing costs by 50%, its “ride hailing bookings and EBITDA could grow 75% and UBER stock could increase 75% if ride hailing costs drop by 50%.”
See Also: US Dollar Depreciation Is Cushioning ‘The Impact Of Tariffs On Corporate Profits,’ Says Expert
Why It Matters: The shares of Uber have risen 35.24% on a year-to-date basis and up 19.47% over a year. Meanwhile, the S&P 500 index was down 3.72% during the same period.
Uber’s shares closed 1.36% higher at $85.43 per share on Tuesday. Its technical charts show that the stock price was above its short and long-term simple daily moving averages.
Its relative strength index at 70.93 indicates that the stock was overbought. Its MACD line of 2.80 signaled a bullish trend as the 12-day exponential moving average was above the 26-day moving average with a positive histogram value.
Benzinga Edge Stock Rankings shows that Uber had a strong price trend over the short, medium, and long term. Its momentum ranking was solid at 83.72th percentile, whereas its value ranking was moderate; the details of other metrics are available here.
The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, fell on Monday. The SPY was down 0.57% to $563.51, while the QQQ declined 0.59% to $485.93, according to Benzinga Pro data.
On Tuesday, the futures of the Dow Jones, S&P 500, and Nasdaq 100 were trading lower.
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