Under Analysis
Uber Shares Suffered Last Year. What Explains Their 20% Surge in 2020?
We asked Wall Street’s biggest bull analyst to explain Uber’s stock price comeback
Under Analysis is a Marker column where experts and analysts weigh in on a prominent company’s future prospects. Today, Mark Mahaney of RBC Capital Markets lays out the bull case for Uber.
Uber shares are up a whopping 20.5% this year after finishing 2019 down 29%, following its disastrous IPO last May. The faithful are not whole as yet, but most of the 36 U.S. analysts covering Uber recommend buying it.
The turnaround has considerable whiplash in it. For years before its IPO, the logic behind Uber’s stratospheric valuation was that it would soon field a global fleet of robo-taxis and, with expensive drivers out of the way, rocket into gigantic profits. But, given that ubiquitous driverless vehicles are now seen as far in the future, what is fueling Uber’s surge?
To plumb this question, we had an email exchange with Mark Mahaney, a managing director at RBC Capital Markets and Uber’s biggest Wall Street bull, with a $64 target on its shares, another 80% higher from today’s price.
