Recently there has been some talk about Uber stock being a good buy. That is, until the company’s recent scandals. Now, it appears that the company is back on the radar, after it was found that one of its self-driving autonomous car programs had been sabotaged by hackers. This in turn may have huge implications for the future of transportation. Investors who bought into the stock now may want to reconsider.
So, what does all this mean for investors in Uber stock at https://www.webull.com/quote/nyse-uber? Well, it means that you may not be as safe as you originally thought. In fact, according to Barron’s analysis, the price drop in the stock market today may be related to the scandals. Interestingly, Uber stock wasn’t priced at its original $45 per share price when it first went public, hence dropping $222 million worth of investment by the end of August.
This controversy isn’t the first time that the ride sharing firm has run into ethical complications. When it first started out, it was illegal for drivers to be employed without the required commercial insurance. It faced stiff fines and penalties and was eventually forced to pull its services in several cities. In a recent earnings call, Travis Kalpin, the CEO of Uber, was asked if the company would consider changing their policy if they faced regulation issues. His answer may not be comforting to some: “There’s no need to do that.”
Does this mean that you should stay away from investing in the stock market? No, of course not. However, it does mean that you need to be careful what you invest in. The current stock market crash has caused a lot of individuals and families to lose confidence in the stock market. While that certainly can have an effect on certain industries, it is unlikely to have a significant effect on Uber, which is by far one of the safest investments. The company recently raised more than $1 billion in capital, far more than it had ever expected.
There are many reasons why the stock market may be falling. Many economists agree that the stock market is basically a voting machine, with large investors pushing prices up and smaller investors pushing them down. If the market continues to lose value, individual stocks will see a significant drop. That is why it is a good idea to follow recommendations for investing in safe stocks and long term investments.
As an investor, you want to find a stock that is increasing in value. You want to get in before the price goes up so you can buy low and sell high. Unfortunately, that rarely happens these days. The current economy and the state of the country’s transportation system are likely factors that contribute to the value decline of certain companies. If you are an educated investor who is capable of identifying stocks that are solid and those that are overvalued, you may have a successful stock portfolio. Before stock trading, you can check its cash flow at https://www.webull.com/cash-flow/nyse-uber.