Uber (UBER) shares have seen increased volatility over the last three weeks as the company has seen a flurry of headlines.
While most of the headlines have been light news that had little effect on the stock, today’s news has shares trading almost 10% lower.
This morning, Google (GOOGL) announced that the company would expand its Waymo One service into Miami. The move puts additional competitive pressure on Uber’s ride sharing business.
Uber shares also dropped heavily following the November elections as investors speculate that Tesla’s Robotaxi business will see faster approval.
Uber’s stock is now trading 23% lower than its October highs. The stock surged to those highs following the company’s last earnings report. That report highlighted an increase in the number of trips made, and better-than-expected revenue results.
The precipitous decline in shares has shifted the intermediate technical outlook for Uber shares.
Today’s drop moves the stock below its 200-day moving average.
In addition, Uber’s 50-day moving average just shifted into a declining pattern. That pattern is a broad signal that shares are likely to continue their decline over the next 4-6 weeks.
While Uber stock remains in a long-term bull market trend, investors should consider the stock at risk of a short-term decline to $60.
