Jan 30th 2023 Free Analysis - UBER

Hey MPA Investors!

We had bats in our house this week!  That’s right.  Bats! 🦇🦇​​🦇  We were sitting in the living room and next thing I knew a bat comes racing down the hallway.  I was able to get two of them out, but had to call animal control for the third one. So that’s my week, how was yours? 😂  I’m exhausted! So let’s jump right in:

THIS WEEKS' MOVERS SNAPSHOT

UBER (Stock Ticker: UBER) - I’m guessing you might have called one or two. Either for a ride or to get some food delivered. We’re not talking about a ride home, we’re talking about a ride to the bank.  

Why UBER?

Kleenex, Advil, Chapstick, Band-Aid, Uber, what do all these have in common?  They are all brand names that we use to describe products.  Kleenex is a tissue, chapstick is a lip balm, Band-Aid is a bandage with gauze, and Uber is a ride share.  So what does all that mean?  When a brand is used like that it often means it’s the leader in the market.  For Uber that’s been the case.  As of Sept 2022 Uber owns around 71% of the ride share market.  That puts the stock in a pretty stable position.

Why we feel there’s a buying opportunity:

1. If you’ve been with us for a while, you know that Q4 earnings are coming out this month and UBER is no different.  Their earnings are expected to be announced on February 8th.  They’re expected to announce the largest ever annual revenue the company has ever had.  Which for UBER is nothing new.  Their earnings have outdone expectations 7 of the last 8 times!  So since 2019 they’ve done better than expected in all but one quarter.

2. The stock has dropped 68.93% since from it’s all time high of $64.05 🤯.  As of the writing of this e-mail it’s around $31.49.  We suspect it could start to climb closer to that all time high number soon.  

TERMS YOU NEED TO KNOW

A BOND -   A bond is a type of loan that you, the investor, give to a corporation, municipality or the US government.  They promise to repay the loan on a specific date.  They also promise to pay the investor a percentage of the loan at certain intervals during the time frame of the loan.  For example if I’m the government, you loan me $100 in the form of a bond.  I promise to repay that bond in 60 days.  Along with that I agree to pay you 10% of that “loan” every 20 days. Note: This is just an example and does not represent actual bond terms.  The terms of the bond are different based on the bond.

Let’s talk investment risk:

No matter what anyone tells you, every investment comes with risk.  Even keeping your money in the bank comes with risk.  The risk isn’t very high for keeping your money in the bank, but there’s still a risk.  Believe it or not, there’s even a risk for keeping cash. You could have it stolen or in 5 years it could be worth less than it’s worth now because of inflation.  So it’s important to understand the different levels of risks that come with investing of all kinds.  We would not recommend investing in individual stocks as a retirement plan.  If you’re interested in investing in stocks for other reasons, the analysis we give you could help.  But we have to be clear, these are NOT recommendations, this is analysis.  We give you the analysis similar to what pros get and you decide what to do with it. Our mission is to put the same information that the pros get, into the hands of everyday investors like you in a way that is easy to understand.

We're listening!

We want to thank you again for being part of the MPA family. We really want to make this YOUR financial newsletter. So we want to hear from you. 

See you on Thursday!Thibaud & PhilipFun fact about the stock market: The stock market is over 400 years old