Uber Launching Two New Delivery Services
Uber has experienced a dramatic decrease in demand for Ride-hailing services as families are staying at home during the COVID-19 pandemic outbreak. In response to the decrease in business the company has decided to now allow for delivery of medicine, supplies and packages between families and friends.
The announcement was made via a blog post by Uber that it was rolling out Uber Direct and Uber Connect in specific cities and locations around the world where they see fit.
Last week Uber withdrew its guidance for 2020 and announced it was taking a write-down of $1.9 billion to $2.2 billion because of the impact the pandemic is having on its minority investments. “Given the evolving nature of COVID-19 and the uncertainty it has caused for every industry in every part of the world, it is impossible to predict with precision the pandemic’s cumulative impact on our future financial result,” Uber said in the press release at the time.
The company has been experiencing a major downturn similar to many other companies in the New York Stock Exchange. The company has been trading slightly downwards with a mainly sideways trend. Based on a Fibonacci Retracement Channel we can see how the price is currently trading in the middle of the range.
The MACD is showing to be slowing down slightly on its climb into the overbought area. Uber has started its IPO with a lot of attention and the company has very little history being publicaly traded. It is showing to be able to hold its value significantly well considering the major drops other companies in transportion have experienced.
Seeing Uber hit a low price of around $13 a share and a high of just over $40 a share we are sitting at $28 currently. There is currently an upwards trending channel going against the overall downwards trend that could potentially signal an upwards momentum.
Should the stock continue to hold its overbought range we can continue to see upwards trending momentum. Failure to be able to break up above the next channels range would potentially signal a downwards directional change.
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