Uber stocks were always enticing for the knowledgeable day traders. While many long-term holders don’t opt on it much because of its hefty lack of profitability and lack of real moat. Its volatility can be a worthwhile prospect for those searching for a quick (or long) short.
Following a 3-year battle with London Transport, Uber ($UBER) won his appeal in court. This means that the firm has reversed the refusal to renew its operating licenses in the city.
The initial decision was based on several safety worries the governing body had concerning Uber’s methods and standards. The most important thing is unauthorized drivers’ ability to upload their pics to a registered account and take rides.
Although they have a temporary license until courts hear the appeal. This regulation let other firms to come to London and attempt and conquer some potential consequence if the appeal fails.
A number of these are now part of the FreeNow application managed by BMW (€BMW) and Daimler (€DAI).
But, a judge ruled Uber fit for purpose, which means the firm has possible dominance over the capital once more for the foreseeable time.
Many could see this as a great sign for catching and holding Uber stocks. Or going Long to trade in contracts for difference or other options.
Although the news is probable to cause the firm a sharp spike. This could offer a much better chance for those searching for a big short.
This decision is good news for UBER, but London is only one city. A large city, but still just one town. Whilst UberEATS has been an obstacle for Uber’s total capitalization capitulating during the pandemic, they got many rivals there, and they provide nothing unique except perhaps McDonalds ($MCD)!
As corona continues to rage longer than anyone has imagined, as offices and nightclubs remain empty, who will catch Uber? Or use any other ride-sharing app? It may not be right away, but Uber is likely to do a noticeable drop-off, and this ruling offers a good chance to grab the chance.
As always, carefully trade, and do not over-expose yourself to risky situations.