Invest In Uber: A Fidelity Guide

Investing in Uber stock can be done through a commission-free online brokerage account. Uber stock is now publicly traded, so it can be bought and sold on the New York Stock Exchange under the symbol UBER.

Fidelity is one of the brokers that can be used to buy Uber stock. However, it is important to note that investing in the stock market is risky, and it is recommended that thorough research is conducted before investing.

Opening a brokerage account

To open a brokerage account, you can use a commission-free online brokerage platform such as M1 Finance. You will need to provide relevant information, including the number of shares you want to buy, the ticker symbol (UBER for Uber), and whether you want to place a limit or market order.

It is recommended to use a market order as it guarantees that you buy shares immediately at the market price. After opening the account, you will need to determine your budget and do your homework by researching the company and considering the risks and rewards before placing your order.

Once you have decided that the pros of investing in Uber outweigh the cons, you can complete the order and become an Uber shareholder.

Figuring out your budget

How much can you spend? Do you want to buy all your Uber stock at once, or do you want to purchase shares periodically, with dollar-cost averaging? These are all very good questions for investors to ask and answer.

Investing a little bit every month and gradually increasing that amount over time, as you get more comfortable, is a fine way to go. If you are investing for retirement, it is recommended to save an amount equal to 15% of your income each year. If you decide to invest in a brokerage account or IRA, consider setting up automatic contributions so you keep investing every month.

It's also worth noting that while the S&P 500 has risen roughly 20% over the last year, Uber shares have made a monster comeback, posting a 149% gain in 2023. If you had put $1,000 into Uber stock in May 2019, your investment would have grown to almost $1,450 by December 2023.

Doing your homework

Before investing in Uber, it is important to do your due diligence and thoroughly research the company and its prospects. Here are some key considerations:

• Financial Performance: Uber's financial performance has been mixed. While the company has seen strong revenue growth, it has also posted significant losses. Examine the company's income statement, balance sheet, and cash flow statement to understand its financial health.
• Competition and Market Position: Assess Uber's competitive landscape, including competitors like Lyft and Didi Chuxing. Consider the company's market share and brand recognition in the ride-sharing and food delivery spaces.
• Leadership and Corporate Governance: Evaluate Uber's leadership team and their track record. Consider any recent scandals or PR disasters that may impact the company's reputation and stock price.
• Business Model and Growth Prospects: Understand Uber's business model and its ability to generate profits. Look into the company's expansion plans, new initiatives, and potential future sources of revenue.
• Industry Trends and External Factors: Analyse trends in the ride-sharing and food delivery industries. Consider factors such as gas prices, food costs, and regulatory changes that may impact Uber's business.
• Investment Thesis: Develop a clear investment thesis outlining why you want to invest in Uber. Identify the key factors that will drive the company's success and how it fits into your overall investment strategy.
• Risk Assessment: Carefully consider the risks associated with investing in Uber. These may include competition, regulatory issues, and the impact of economic factors such as inflation. Weigh the risks against the potential rewards.
• Technical Analysis: Study Uber's stock price history and charts to identify any patterns or trends. Look for support and resistance levels, moving averages, and indicators that may influence your investment decision.
• Analyst Reports and News: Stay informed about analyst recommendations, earnings reports, and news related to Uber. Consider the opinions of industry experts and keep track of any developments that may affect the stock price.

Remember, investing in individual stocks like Uber carries a higher risk than investing in diversified funds. Make sure to diversify your portfolio and consider seeking advice from a financial advisor before making any investment decisions.

Placing your order

If you've decided that the pros of investing in Uber outweigh the cons, it's time to place your order and become an Uber shareholder.

Here's a step-by-step guide on how to place your order using the five-star-rated platform, Fidelity:

• Go to the Fidelity website and log in to your account.
• On the relevant page, fill out all the necessary information, including the number of shares you want to buy or the amount you want to invest to purchase fractional shares.
• Enter the ticker symbol, which is "UBER" for Uber.
• Decide whether you want to place a limit order or a market order. The Motley Fool recommends using a market order as it guarantees you buy shares immediately at the market price.
• Review your order details and budget before hitting the "Place Order" button.

And that's it! You've now placed your order and are an official Uber shareholder. Remember to keep an eye on your investment and review your portfolio periodically to ensure it aligns with your financial goals and risk tolerance.

Choosing an account type

There are three main types of accounts you can use to invest in Uber stock: a brokerage account, a 401(k), or an individual retirement account (IRA). Each has its own pros and cons, so it's important to understand the differences before deciding which type of account is right for you.

Brokerage Account

A brokerage account is a standard investment account that offers flexibility, as anyone over the age of 18 can open one and there are typically no restrictions on how much money you can add to the account or when you can withdraw funds. However, brokerage accounts are taxable, which means you'll generally have to pay taxes on any realised investment profits, such as gains from selling investments or dividends received.

K)

A 401(k) is an employer-sponsored retirement plan that offers tax advantages and relatively high contribution limits. You can contribute to a 401(k) pre-tax, and you won't pay any taxes on your investments until you withdraw the money. Many employers will also match your contributions up to a certain amount, giving you free money to encourage your retirement savings. However, 401(k)s have rules and restrictions on how much you can contribute, when and how you can withdraw funds, and what types of investments you can choose.

Individual Retirement Account (IRA)

An IRA is a tax-advantaged retirement account that you can open and manage on your own. Traditional IRAs offer similar tax benefits to 401(k)s, and you may have more flexibility in terms of when you contribute and what types of investments you can choose. However, there are rules and restrictions on who is eligible for tax deductions, how much you can contribute, and when and how you can withdraw funds.

Other Considerations

When choosing an account type, it's important to consider your financial goals and investment time horizon. If you're investing for retirement, a 401(k) or IRA may be a better option due to their tax advantages. If you're investing for other goals or want more flexibility, a brokerage account could be a better choice. It's also important to consider the fees and minimums associated with each type of account, as well as the investment options available.

Frequently asked questions