UBER Extends Block Partnership As Shares Slip On Weak Market Day

Uber Technologies (NYSE:UBER) on Wednesday expanded its collaboration with Block, Inc. (NYSE:SQ) to enhance restaurant operations and payment flexibility, adding pressure as broader markets edged lower.

• Uber Technologies stock is trending lower. Why is UBER stock trading lower?

The partnership aims to integrate Square’s Uber Eats capabilities internationally and introduce Cash App Pay as a payment option in the U.S.

This collaboration is expected to streamline restaurant operations and enhance customer experiences, particularly among younger consumers.

Autonomous Delivery Expansion

Meanwhile, Coco Robotics launched autonomous delivery robots in San Jose via Uber Eats, expanding its U.S. footprint.

The rollout enables fast, zero-emission last-mile deliveries, helping restaurants improve efficiency and customer reach.

The move builds on Coco's growing network, leveraging AI-driven robotics to scale urban logistics across major cities

The broader market saw gains, with the Technology sector up 1.54% today. Uber’s decline comes as the broader sector moved higher, indicating company-specific factors may be at play.

Technical Analysis

Uber is currently trading within its 52-week range, with a high of $101.99 and a low of $68.46. The stock is trading 3.7% above its 20-day simple moving average (SMA) and 3% above its 50-day SMA, suggesting short-term strength, while it is 3.4% below its 100-day SMA and 11.9% below its 200-day SMA, indicating some intermediate-term weakness.

The relative strength index (RSI) is at 60.81, which is neutral, suggesting that the stock is neither overbought nor oversold at this time. The moving average convergence divergence (MACD) is bullish, with the MACD line above the signal line, indicating positive momentum.

• Key Resistance: $78.50 — This level may act as a barrier for upward price movement.
• Key Support: $68.50 — This level could provide a safety net for the stock if it declines further.

Uber operates in over 70 countries, with over 202 million users who order rides or food at least once a month. The recent partnership with Block highlights Uber’s commitment to enhancing its service offerings and adapting to consumer payment preferences, which is crucial for maintaining its competitive edge in the rapidly evolving delivery and transportation markets.

Earnings & Analyst Outlook

The countdown is on: Uber is set to report earnings on May 6 (confirmed).

• EPS Estimate: 71 cents (Down from 83 cents)
• Revenue Estimate: $13.28 billion (Up from $11.53 billion)
• Valuation: P/E of 16.3x (Indicates fair valuation)

Analyst Consensus & Recent Actions: The stock carries a Buy rating with a consensus price target of $106.52. Recent analyst moves include:

• Wells Fargo: Overweight (Lowers target to $95 on March 30)
• BTIG: Buy (Maintains target to $100 on March 17)
• BTIG: Buy (Maintains target to $100 on March 4)

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Uber, highlighting its strengths and weaknesses compared to the broader market:

• Value: 54.46 — The stock is trading at a moderate valuation relative to peers.
• Growth: 88.63 — Indicates strong growth potential compared to the market.
• Momentum: 15.99 — Stock is underperforming the broader market.

The Verdict: Uber’s Benzinga Edge signal reveals a growth-heavy profile, but the low momentum score suggests it may struggle to maintain upward price movement in the near term.

Top ETF Exposure

• The Industrial Select Sector SPDR Fund (NYSE:XLI): 4.27% Weight
• Invesco Nasdaq Internet ETF (NASDAQ:PNQI): 4.01% Weight
• Pacer US Cash Cows Growth ETF (NYSE:BUL): 4.92% Weight

Significance: Because Uber carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely trigger automatic buying or selling of the stock.

UBER Price Action

UBER Stock Price Activity: Uber shares were down 2.42% at $75.39 at the time of publication on Wednesday, according to Benzinga Pro data.

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