Today’s tip is for a newly listed company that has yet to show a profit but provides promising growth prospects and should therefore also see its price increase accordingly as demand for its shares increases.
We’re going to get into the promising, high-growth company called Uber ($UBER), on what will be just its second day of trading as a publicly listed company.
Uber’s core business is as a ride-sharing service, with approved drivers acting as taxis and paying a commission to Uber for providing them with clients and with software simplifies their role as a taxi, including payment collection.
Additionally, Uber now also offers food delivery services that have seen extremely high growth, and are also developing self-driving technology for vehicles, which should see their profits soar in the coming years, when such vehicles become commonplace, as they inevitably will.
Buying in now is a bold move, and there is likely to be a high degree of volatility in the coming days and weeks, but with the stock listing at the low end of its IPO price range, with such a large lead on its competition, and such a low market saturation of services it offers, I expect we’ll see Uber’s price move higher in the coming months and years.