Uber Wins Fight for London License
Source: pexels

Why Is Uber Stock Going Up?


Sep. 28 2020, Updated 9:55 a.m. ET

Why is Uber stock rising in premarket trading today? A court in London today (Sept. 28) delivered a victory for Uber in its fight with the city's transport regulator, sending Uber stock upward. 

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Uber Wins Fight for London License
Source: Getty Images

Is Uber operating in London?

Uber has had a troubled existence in London. The city has twice stripped the ride-hailing company of its license to operate over safety concerns. After London’s transport regulator denied its license last November, Uber moved to court to contest the decision. 

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The court has sided with Uber in today’s ruling, freeing it to seek a new license from Transport for London. London is Uber’s largest market, which explains why the company fought hard to overturn the regulator’s ban.

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What is Uber's stock price today?

Uber stock had risen by more than 6.4 percent to $36.67 as of 6:25 a.m. ET today as investors responded to its court victory. The stock rose 3.33 percent on Friday to wrap up the week at $34.46. Uber shares have climbed 16 percent in 2020. 

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Uber stock forecast: Wall Street's view

The most bullish Wall Street analyst sees a 68 percent upside in Uber stock to $58 within 12 months, and the most bearish analyst sees a 59 percent downside to $14. 

Should I buy Uber stock?

Uber may be a great fit for investors seeking exposure to the fast-growing ride-hailing industry. Uber continues to dominate the U.S. ride-hailing market, with a 71 percent share. Its closest competitor, Lyft, has a 29 percent market share. 

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Uber stock is currently trading about 18 percent below its 52-week peak of $41.86. The company's dominant share in many markets around the world positions it to make the most of the growing demand. The global ride-hailing market is on track to hit $126.5 billion in annual revenue in 2025 from $36.5 billion in 2017. 

Uber stock may also appeal to investors seeking exposure to the fast-growing online food ordering and delivery industry. Uber Eats, already one of the top food delivery services in America, is set to hold a larger market share after its Postmates merger deal. 

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However, investors buying Uber stock should know that the company’s dominance also makes it a target. Alphabet’s well-funded Waymo is one of the competitors vying for Uber’s market share. 


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