Things getting UBER difficult for global ride-hailing leader
Things are looking more than a little wobbly for the company that popularised app-based ride-hailing. What’s going on exactly? Let’s take a quick peek before giving you our usual roundup of the week’s most important market events to pop in your calendar.
Uber shares hit an all-time low
Uber’s share price (UBER) dropped by a not-so-tiny 6% last Tuesday, hitting a record low. To be honest, this year’s not exactly been a walk in the park for the US-based ride-hailing giant. Uber’s debut year on Wall Street has been something to forget for shareholders, with shares now trading more than 30% below their initial public offering prices, eek! The company posted losses amounting to more than $5.2 billion in Q2. Yes, you read that right… BILLION! Analysts don’t expect to see a profitable 2020 or 2021 either.
So, time to give up on Uber? Things don’t look too rosy, let’s be honest. Scandals are being made very public and vulture-like competition is circling. But, some of you may remember how shares in Facebook (FB) took a tumble following its 2012 IPO — we don’t really need to remind you what’s happened since then. Likewise, Amazon (AMZN) lost money for years before finally becoming profitable. True, Uber lost more in the nine months leading up to its IPO than Amazon did in its first seven years, but still! The moral of the story is this — be patient!
What events should be on your trading radar this week?
Trading isn’t easy — whoever told you it was, was either lying or a little bit bonkers. Trading is tough. It’s made all the tougher by the fact that there is just so much information out there, a lot of it conflicting and confusing. It’s enough to leave your head spinning and, potentially, your funds dwindling. Enter your Contentworks guardian angels! Let’s see if we can’t sort some of the wheat from the chaff and give you an idea of some of the events you should be popping into your diary this week.
● Tuesday is UK ILO Unemployment Rate day. This report is basically the number of unemployed workers divided by the total civilian labour force. It’s a major indicator of the health of the UK Economy. All eyes on you, Brexit!
● Strap yourself in for a busy, busy Thursday, which sees the German Harmonized Index of Consumer Prices (YoY); and the ECB’s decision on both interest and deposit rates; plus the US’ Consumer Price Index Ex Food & Energy (YoY and MoM). Wowza… Pour yourself a bucket of coffee and keep up with all of that, if you can!
● We’re Stateside on Friday for the US retail sales control group and the Michigan Consumer Sentiment Index — a neat little consumer confidence survey, which essentially shows whether or not the average Joe is willing to splash his bucks or not.
Keep your eyes on all of these events, they’re the ones that are most likely to cause volatility. Definitely try to keep up with everything that happens in the UK Parliament, too. All-things-Brexit are still a bit of mystery and the GBP could be liable to move either way.
If you’re looking to supply your traders and investors with a short, snappy, light-hearted preview of the week ahead, a review of the week behind, or literally any kind of finance-related content in-between, you should really contact us. We’d be delighted to talk through your specific needs and tailor a solution just for you. Don’t be shy!