Uber Technologies Inc. (NYSE:UBER) announced that it will terminate its deal to acquire Delivery Hero’s Foodpanda in Taiwan after facing regulatory challenges. Here’s what Benzinga’s proprietary edge rankings show about the stock.
What Happened: Uber signed the $950 million deal to take over the German company’s Foodpanda business in Taiwan last May. However, it ended the deal, reported Reuters, resulting in the payment of $250 million termination fee.
This follows a block imposed by Taiwan’s Fair Trade Commission in December 2024, citing a 90% rise in its market share when combined with its own business, Uber Eats.
According to Delivery Hero, a separate agreement that was signed with Uber to buy $300 million worth of its newly issued shares will not be affected after the falling out of the said deal.
Why It Matters: Shares of Uber declined 3.3% on Tuesday and rose by 0.20% in after-hours. The exchange-traded fund tracking the S&P 500 index, SPDR S&P 500 ETF Trust (NYSE:SPY) dropped 0.83% on the same day.
Uber has risen 11.84% on a year-to-date basis, whereas it was 9.79% over one year.
On a technical basis, Uber’s stock was flashing a bearish warning. The stock, which closed at $70.65 apiece on Tuesday, was below its short and long-term averages. Its relative strength index of 42.09 was in a neutral zone, while the MACD indicator was positive at 0.49, implying the possibility of a short term up move.
Benzinga‘s proprietary Edge Rankings also confirmed a weaker long term price trend as the stock has declined in the high single digits over the last 12 months. Its momentum ranking of 48.12 percentile, indicating a neutral positioning for the stock.
Meanwhile, its value ranking depicting the stock’s relative worth stood at 45.15 percentile. The growth ranking of 9.47 indicated a weaker historical earnings and revenue expansion.
Uber’s consensus price target was $90.58 based on the 35 analysts tracked by Benzinga. The price targets ranged from a low of $77 to a high of $115. The three latest ratings from KGI Securities, Truist Securities, and Piper Sandler averaged at $85.67, implying a 21.02% upside.
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