Why the Uber Stock Has Fallen: A Disaster or an Opportunity to Invest?

Why the Uber Stock Has Fallen: A Disaster or an Opportunity to Invest?

Every good investor knows that it’s important to always pay attention to what’s going on in the stock market world. When it comes to investing in anything, one can’t simply turn a blind eye. Investing can be complex at times, and you must be keeping an eye on your investments if you want to be as successful as possible.

Surely you’ve noticed, but the Uber Technologies (NYSE: UBER) stock has been falling for several months. Although you might be interested in investing in this technology company (or maybe you already have), you’re going to have some questions. Like, for one, why on Earth the company’s stock is falling, even though more people are using rideshare more than ever before.

Why the Uber Stock Fell

At present, one of the main reasons Uber Technologies is falling is due to the reaction of the public to the Coronavirus outbreak. Shared rides have been suspended in both the U.S. and Canada. Not to mention, many drivers refuse to drive to avoid contact with others during the health scare, as are some potential passengers.

In general, the pandemic has been impacting global markets and may continue for months to come. But this isn’t the only reason why its stock has been dipping.

Uber has dealt with setbacks in Europe. In addition, the company lost its license to operate in London in November 2019. Plus, since the company announced its IPO in May 2019, it’s been dealing with large losses.

And, based on predictions, Uber’s revenue wasn’t exactly what the Market has anticipated over the past several months, leaving some traders to panic-sell. The company also had to cease operation at numerous airports due to raised operational fees enacted by the airport companies. Lastly, Uber has close competition, making its earnings unpredictable at times.

What’s the Future of the Uber Stock?

Only time will tell whether NYSE: UBER will increase or continue to crash and burn.

However, some suggest that the stock will be increasing relatively soon. Even the current CEO of Uber has high hopes that it will be profitable by the fourth quarter of the current fiscal year.

And like with all global crises, once the Coronavirus outbreak is considered contained, Uber will likely see a rise in their stock.

Is it a Good Time to Invest in NYSE: UBER?

Is it really ever a good time to invest in any company? Anything could happen, even when we feel confident we’re making a good investment decision. The higher the risk, the greater the reward, right? Well, sometimes.

Only you can decide if the company is worth investing in, in the long-run. Although, many investors like to play it safe and only invest in companies that are already profitable.

For now, it’s best advised to be patient. If and when it’s near the time for Uber to break even and be deemed profitable, then, maybe it’ll be a stock you will consider.

Conclusion

It’s always good to be a concerned investor, especially if you’ve invested in, or are planning on investing in, Uber Technologies. Our best advice? Stick to your gut. And, always remember that, according to AARP, trying to time the market is one of the biggest investing mistakes you could ever make. If you must, talk to your financial advisor first before making any rash decisions.

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