Uber Launches 3 New Ad Products; Stock May Be 12.4% Undervalued
Uber (UBER) announced three new advertising products that use its ride, delivery, and shopping data to connect brands with consumers. The stock rose 5.8% in one day and 4% over the past week, but the 90-day return is -6.4% and the one-year total shareholder return is -14.4%.
Key Numbers
Uber Technologies (UBER) unveiled three new advertising products that aim to leverage its ride, delivery, and shopping data to connect brands with consumers both within and beyond its apps, according to Simply Wall St. The announcement comes as Uber's stock rose 5.8% in the last day and 4% over the past week, though the 90-day return is -6.4% and the one-year total shareholder return is -14.4%.
The Products
Uber did not disclose full details of the three ad products but stated they will use data from rides and deliveries to target consumers inside and outside Uber's apps. The products aim to expand Uber's existing in-app advertising business.
Pricing and Availability
Pricing and launch dates have not been announced. Uber is expected to test the products with select advertisers before a wider rollout.
Competition
Uber enters a digital advertising market dominated by Google, Facebook, and Amazon. However, Uber's unique data on consumer mobility and delivery behavior could give it an edge in targeted advertising.
Potential Impact on Uber
The new ad products could diversify Uber's revenue beyond core ride-hailing and delivery. Simply Wall St estimates Uber's stock may be 12.4% undervalued, suggesting upside potential if the ad strategy succeeds.
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