Uber Technologies Inc. (NYSE:UBER) stock fell more than 2% on Friday, underperforming a broader market rally. The Nasdaq gained 0.27%, and the S&P 500 added 0.39%.

Investors remained focused on company-specific concerns, including a reported bid for Delivery Hero and the potential impact of continued spending on autonomous vehicle initiatives.

Delivery Hero Deal Faces Investor Skepticism

BNP Paribas said Friday that a potential acquisition of Delivery Hero would make strategic sense for Uber, particularly in Latin America, the Middle East and parts of Asia, where the company is looking to strengthen its food delivery footprint.

Analyst Nick Jones said Uber’s reported offer of 33 euros per share, or about $38, was rejected, with investors reportedly seeking at least 40 euros per share, or about $46.

While Jones sees a clear strategic rationale for further consolidation in the food delivery market, he cautioned that any deal would likely weigh on Uber’s growth rate and profit margins in the near term. Over time, however, cost synergies and improved platform efficiency could help offset those pressures.

BNP Paribas also warned that regulatory scrutiny could be significant given Uber’s scale, although transactions in markets where the company has a smaller presence may face fewer hurdles.

“In our conversations with investors, the tone seems neutral-to-negative on the deal, reflecting elevated fears around autonomous vehicle disruption and Uber’s heavy investments into AVs,” the analyst said.

The firm maintained a positive rating on Uber and reiterated a $108 price forecast, implying roughly 55% upside from the stock’s June 11 closing price.

Analysts remain broadly bullish. The stock carries a Buy consensus rating with an average price forecast of $105.95. Recent analyst actions include:

  • Tigress Financial raised its price forecast to $115 on June 12.
  • BTIG maintained a Buy rating and $100 price forecast on May 28.
  • DA Davidson maintained a Buy rating and $107 price forecast on May 26.

Read Also: Uber CEO Dara Khosrowshahi Says Company 'Blew' Through Its Annual AI Budget In A Single Quarter, Reports Increased Human Productivity

Technical Picture Remains Weak

Uber continues to trade below all major moving averages, reinforcing the stock’s bearish trend.

The shares are 5.6% below their 20-day simple moving average, 7.6% below the 50-day average, 8.6% below the 100-day average, and 17.8% below the 200-day average.

The “death cross” that formed in January, when the 50-day moving average fell below the 200-day moving average, remains a negative technical signal. The stock has also struggled to build momentum after a May swing high, suggesting the current move is more of a retest than the start of a sustained recovery.

Momentum indicators remain weak. The MACD is below its signal line, and the histogram remains negative, indicating buying pressure has faded.

A key resistance level sits near $78.50, where previous rallies have stalled.

The Funds Most Invested In Uber

  • Tremblant Global ETF (NYSE:TOGA): 4.84% Weight
  • Trenchless Fund ETF (NYSE:RVER): 4.86% Weight
  • Pacer US Cash Cows Growth ETF (NYSE:BUL): 4.70% Weight

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

UBER Price Action: Uber Technologies shares were down 2.19% at $68.03 at the time of publication on Friday. The stock is trading near its 52-week low of $67.19, according to Benzinga Pro data.

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