How to buy Uber shares (UBER)
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This guide explores the history of Uber and its recent investment performance. You can also find an analysis of the best places to buy Uber stock.
Compare the best Uber trading platforms
If you have all the information you need and just want to know where to buy Uber stock online, simply visit one of our trusted brokers below. If you’re not ready to get involved yet, keep reading for more information on Uber.
How to buy Uber shares, a step-by-step guide
Buying shares in Uber is a simple process, even for the most inexperienced investor. The following list explains the steps you need to take to complete your investment.
- Choose a broker. To invest in Uber, you need to use an online brokerage platform. There are many different options to choose from, each with its own unique benefits and drawbacks. The comparison table above can help you select the right broker for you, and you can head to our comprehensive broker reviews if you’re still unsure.
- Create an account. Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally, you can expect to have to provide your name, email address, phone number, and some form of photo identification.
- Deposit funds. Log into your broker account and select the option to deposit funds. Depending on your broker you’ll have a variety of payment options available; most brokers accept bank transfers and debit card payments, but not all accept e-wallets such as PayPal. Select your preferred payment method and deposit the amount of money you wish to invest in Uber shares.
- Place an order for UBER stock. Now navigate to the shares section of your online broker. Here, you can search for Uber’s ticker symbol (UBER) and see the current price at which the stock is trading. If you’re happy with the price, enter the number of shares you wish to purchase and place your order.
- Execute your order. Once you have placed your order, your broker will automatically execute it for you and your Uber shares will be listed in your account. Congratulations, you’ve just bought shares in Uber! Check out our educational courses for more details on investing in the stock market.
What is Uber? And should I invest?
Uber (NYSE: UBER) offers ride-sharing, food and package delivery, courier transportation and other logistical services. Formed in 2009, Uber is a pioneer of the gig-economy, dominates the ride-sharing market and has tens of millions of monthly users worldwide. It went public with an IPO in May 2019.
Uber has had a turbulent time in recent years, with some bad PR, aggressive moves by city and state legislatures against them and then the coronavirus pandemic on top. Uber has a very global approach to its development, seeking to expand into many markets while reiterating that its core ride-sharing app is going to produce profits in the near future. It has run into trouble with various cities around the world, having battled Transport for London in particular to retain its license to operate there, and has courted far more controversy than rivals like Lyft.
That controversy and Uber’s vulnerability to the introduction of new labour laws which would significantly increase its costs have made the stock quite volatile during its short run as a public entity. Volatility might induce short term investors, while long term investors might want to undertake much more fundamental analysis over the business model and its route to profitability before investing.
How has the company performed in recent years?
Following its IPO in May 2019, Uber experienced the worst first day loss in US history as it fell 11% immediately after going public in May. The fallout cost two executives their jobs, but the price did steady until fears over California introducing new labour laws caused another fall in late 2019. The pandemic, however, gave Uber a big boost, sending its price above $50 for the first time in 2020.
At first, the pandemic and its associated lockdowns caused Uber to crash close to $20 in early 2020, but it was able to weather the fallout reasonably well thanks to a surge in demand for Uber Eats, its food delivery operation. That salvaged the share price to some extent, before a huge win for the company in California, exempting its workers from being classed as employees, sent the price soaring to that highest ever point at the end of the year.
Uber proved resilient throughout the pandemic, as it was diverse enough to have capitalised on demand for delivery services. As it looks to the future it is expanding its operations in the UK to offer more services outside of London and Uber Eats is adding more restaurants, closing the gap to Just Eat in terms of market share.
Is it a good time to buy Uber shares now?
Uber is now focusing on reaching profitability, which has meant offloading some of its big name projects that were failing to achieve much and just distracted from its core business. It sold its flying taxi project, autonomous car division and its electric bikes in 2020, retaining a stake in each but handing off operations elsewhere. Those decisions might speed Uber up towards its target of hitting profitability in 2021, which would be a big boost to investor confidence.
There are some clouds on the horizon, with many cities looking for ways to curb the dramatic increase in traffic that ride-hailing apps and delivery services cause. Similarly, as California – and Transport for London – have shown, city legislatures are not afraid to try to take these companies on and introduce laws which would have a major effect on how they operate.
Uber’s victory in California, though, was a huge positive to factor in for the company. The California campaign for an exemption was funded to the tune of hundreds of millions of dollars by gig-economy companies like Lyft and Uber, who would have been forced to pay significantly more in insurance and benefits to their workers had it failed.
It is worth considering that ride-sharing companies are particularly sensitive to laws like this and are likely to have to fight similar battles in the future. Some cities have tried, unsuccessfully so far, to ban them entirely until they change their employment practices and it’s vital any potential investor keeps track of developments in any country, city or state Uber operates in. You can track all the latest news on that, and much more market analysis below.
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Buying, selling and trading shares for beginners
What to do before buying shares
You should always take the time to research a stock fully before investing your money, especially if you haven’t bought shares before. The more knowledge you have, the better your chances of making a wise investment.
With that in mind, here’s a checklist to run through before investing in Uber shares.
- Research the company. You should always examine the fundamentals of a company before investing. What is Uber? How did the company get its start? How did it grow? Is Uber’s revenue and profit growth picking up? Is the company innovating? The more you know about Uber, the better positioned you’ll be to make smart investment decisions.
- Make sure you understand the basics of stock investing. Before getting involved in the stock market, make sure you have an understanding of how it works. This will ensure that you have more clearly defined goals and have thought through how you will achieve them.
- Decide between share dealing and CFD trading. Choose the type of investment strategy you want to pursue, and make sure you have carried out the necessary fundamental or technical analysis for share dealing and CFD trading respectively.
- Set the size of your budget. The golden rule of investing is never to risk more than you can afford to lose. Not every investment you make will result in a profit, so it is important to set a budget that not only allows good potential for capital growth, but also protects against overly damaging losses.
- Find the right broker. Individual brokers each have their own pros and cons. Some will have low fees but have a user interface you struggle to understand, whereas others may be a bit more expensive but come with a range of features that you want to take advantage of. Our broker reviews can help you find the right platform for you.
- Examine broader market conditions. No stock exists in a vacuum, and it’s always important to analyse the general trends of the stock market as a whole before investing. If a bear market is setting in and stock prices are falling, it’s best to wait it out and invest your money later when the stock is cheaper. If, however, the market is looking bearish, you’ll want to make your investment quickly to get the maximum benefit from rising stock prices. Our stock news section can help you keep on top of movements in the financial markets.
What is the difference between buying, selling, and trading shares?
If you’re new to stock investing, then it’s important to understand the basics of how to buy, sell, and trade Uber shares. Here’s a quick run-through of what’s involved in each.
This process involves finding a broker and placing an order for Uber stock, as outlined in the steps further up this page. Ideally you want to time your investment when the stock’s price is low so that you can profit by selling the shares after they increase in value.
When you sell any Uber shares you have bought, you’ll want to do so at a higher price than the one at which you bought to earn a profit.
When you sell is up to you. You might decide to hold for a long period, hoping to benefit from the company growing steadily throughout. Or, if you see that Uber’s stock is already up a lot compared to the price you bought it and you’ve noticed that the stock market is starting to fall, it might make sense to sell and take your profits to invest elsewhere. Equally, if the stock has fallen since you bought it and looks set to fall further, it might be a good idea to cut your losses by selling your shares.
Trading is the same process as buying and selling shares, it’s just done over shorter periods of time with the aim to make small profits on a regular basis. This means that you can make money faster and spend your profits in your day-to-day life – however, on the other side it means you can lose money faster as well. For inexperienced investors, we generally recommend making investments for at least 6 months to a year instead of making trades in quick succession.
You can trade Uber shares outright or use CFDs. These allow investors to speculate on stock prices and trade with leverage in pursuit of bigger gains. CFDs trading is explained further in the next section, though it is worth noting that beginners should avoid trading with leverage. It comes with large risks and is best left to experienced investors.
Share dealing vs CFD trading
When it comes to investing in any stock, the two options you have are share dealing and trading. Which one of these methods to opt for largely depends on your investment timeline, with investors aiming for long-term profits tending to go for share dealing, and those looking for short-term accelerated gains pursuing an aggressive trading strategy.
Here’s a quick summary of the two approaches, and the pros and cons of each.
Share dealing refers to the practice of holding shares in a particular company over the long term. When investing like this, you’re seeking to profit either from continual dividend payments or an increase in the stock’s price over time.
When investing your money this way, it is important to do a thorough fundamental analysis of the company in which you are investing. You want to put your money in a stock you believe will trend upwards over time, even if there is some market volatility along the way, rather than get distracted by shorter-term peaks and troughs.
- Can build wealth over time to achieve financial goals
- Don’t need to be very reactive to short-term market movements
- Some stocks give you an income through regular dividend payments
- Takes a long time to realise any profits
- Your capital is tied up in stocks and cannot be used for other investments
If your aim is to generate profits in the short term, then you might be better off trading shares than holding them in your portfolio. Stock trades like this are executed using CFDs (contracts for difference), which allow investors to trade against the value of a stock without having to take ownership of it. When CFD trading, investors are looking to open and close positions fast to profit from short-term fluctuations in value.
One aspect of CFD trading that many investors find attractive is that they allow you to trade with leverage. This means you can place large trades while only putting up a fraction of the value yourself – for instance, if a platform offered leverage of 1:10, you could put £10 into UBER shares and be able to trade £100 worth. This can maximise profits if the market moves in your favour, but be careful as it can also lead to heavy losses.
When trading using CFDs, it is key to be skilled at technical analysis and reading stock price charts. As you’re trading stocks quickly and frequently, the fundamental strength of the company in which you’re investing isn’t as important as being able to predict how its stock price will rise and fall minute-by-minute.
- Can generate fast profits if you read the market right
- Some platforms allow you to trade with leverage
- Prevents your capital being tied up so you can take advantage of investment opportunities
- Trading with leverage is risky and can lead to big losses
- Doesn’t necessarily generate growth over the long term
Consider which approach suits you best and craft an investment strategy that works for you. If you need more information, then simply take our stock trading course and read our guide to CFD trading to get you up to speed.
If neither of these options appeals to you, then you can find a variety of other ways to invest in UBER stock on this page. If, however, you’re ready to get started now, simply select one of the brokers in the table above.
How to choose a broker
With the wide variety of online brokers available these days, it can be hard to figure out which is the best service to go with. Our comparison table and in-depth reviews can help you cut through the noise, but by and large these are the aspects you should be considering when selecting a broker:
- Range of stocks available. The most important thing is that you can actually use the broker to buy the shares you’re looking for. Some brokers offer more stocks than others, and many will allow you to trade other assets, such as forex and commodities.
- Fees and commissions. You want to keep as large a chunk of your profits as you can, so it’s important to make sure your broker doesn’t charge high fees that can eat into your profits.
- Regulation. You should only use regulated brokers to place trades. Unregulated brokers can be risky and offer little to no protection if the business were to fail while you had funds in your account.
- Payment methods available. You might want to invest using a specific payment method, such as PayPal. Not all brokers accept every payment method, but by using our comparisons, you can search for the brokers that support the option you’re looking for.
- Reputation. One of the strongest indicators of a broker’s reliability is the reputation it has with the customers who have used it. Brokers are online businesses, and as such many user experiences can be found online. You can check these out in addition to our reviews to make sure you choose the right platform.
- Customer service. As you’re going to be investing your money using the platform, you want to check that the broker offers good customer service in case you have a query or something goes wrong.
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Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >