Is Uber stock a buy right now?

Shares of Uber (NYSE: UBER) are trading higher this month as investors seek exposure to reopening and recovery stocks. 

Fundamental analysis: New drivers plan presented

Uber announced a new $250 million driver stimulus plan two days ago to support the current drivers and increase appeal for other drivers to join the ride-sharing company. 

The California-based company is seeking ways to increase the number of drivers as it prepares to deal with an unprecedented amount of demand for mobility. The faster-than-expected vaccine rollout is helping Uber’s mobility business with the demand already higher than anticipated. 

The analyst also adds that Lyft (LYFT) is likely to follow the suit, otherwise it risks losing drivers to Uber. 

Technical analysis: Consolidation before a breakout?

Uber share price is trading almost unchanged on the week after it surged over 5% last week. This way, shares of Uber are on the path to post the best month since November. 

Uber stock price is trading in a symmetrical triangle - defined by $53.00 and $58.50. Given the positive fundamental backdrop, shares of Uber are much more likely to break out higher as traders buying Uber stock are seeking fresh record highs above the $64 handle. 

Summary

Uber presented a $250 million driver stimulus plan to attract new drivers as it copes with high demand for mobility. Shares are consolidating with a breakout above $59.00 offering a path towards fresh all-time highs.