Buying Uber After Milestone Autonomous Vehicle Announcement
I'm adding to my position in the ride share name as it marks a major step up in competition with Tesla.
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The S&P 500 gapped higher on Tuesday morning following the news of an Israel-Iran ceasefire, but with technical conditions extended, buyers are unwilling to do much chasing. There is strong support and a line of buyers who would like to buy a dip, but they are hesitant to chase strength at this point.
Breadth is around three-to-one positive, and there are close to 500 new 12-month highs, but there are some pockets of red in Walmart WMT, Costco COST, Apple AAPL and Tesla TSLA. Many stocks need some rest before they will be able to sustain a push higher.
Jerome Powell is testifying before the House on Tuesday and is justifying his reluctance to cut interest rates on forecasts that tariffs are going to cause inflationary pressures. He stated that the Fed expects a "meaningful increase in inflation this year."
That has been the argument for a while now and has proven to be wrong, but there are many other economists making the same prediction. It sounds a bit like the argument a few years ago about how inflation was "transitory," but it is the entrenched view and is not being changed at this point.
I've been looking hard for some new buys and decided to add to my position in Uber UBER. Uber announced that starting on June 24, a limited number of Waymo autonomous vehicles will gradually become available on the Uber app for riders in select areas of Atlanta, Georgia.
"Waymo vehicles will operate across 65 square miles of Atlanta, and we expect to gradually expand the operating area over time."
This is a major milestone and makes UBER a very strong competitor against Tesla in the robotaxi business.
This news has triggered a technical pattern that is sometimes called a "pocket pivot." The stock has moved out of a short downtrend and is gaining momentum as it tests recent highs. I added to my position and have room for additional buys as it develops further.
I'm looking for some more opportunities to put money to work, but will stay very selective.
At the time of publication, DePorre was long UBER.
