What Happened?
Shares of ride sharing and on-demand delivery platform Uber (NYSE: UBER) fell 4.3% in the morning session after the company lost a UK Supreme Court appeal regarding a value-added tax (VAT) on its rivals. The ruling confirmed that rival taxi operators in England and Wales will not face a 20% value-added tax (VAT) charge on their profit margins for operations outside of London. This decision represented a setback for Uber, as a different outcome could have imposed significant costs on its competitors, potentially leveling the playing field. The court's decision allows these rival firms to maintain their existing cost structures, which could make it more challenging for Uber to compete on price and expand its market presence in those regions.
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What Is The Market Telling Us
Uber’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 3.9% on the news that an analyst at Piper Sandler raised their price target on the stock to $103 from $95. The investment firm maintained its Overweight rating on the shares, signaling confidence in the company's growth trajectory. Adding to the bullish sentiment, Uber also expanded its global partnership with Mastercard to enhance payment experiences for its drivers, couriers, and customers. The agreement involved leveraging several of Mastercard's payment products and services to support Uber's business operations. This positive news followed recent commentary on the rapid growth of Uber's high-margin advertising segment, which management previously announced had surpassed a $1.5 billion annual revenue run rate.
Uber is up 38.2% since the beginning of the year, but at $87.30 per share, it is still trading 10.4% below its 52-week high of $97.48 from July 2025. Investors who bought $1,000 worth of Uber’s shares 5 years ago would now be looking at an investment worth $2,814.
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