Uber Technologies Inc (NYSE:UBER) shares fell more than 2% on Friday, underperforming a broader market rally as investors weighed a reported bid for Delivery Hero and concerns over autonomous vehicle spending.

Key Highlights

  • Uber shares fell more than 2% even as the Nasdaq and S&P 500 posted gains.
  • BNP Paribas said Uber's reported 33 euro per share offer for Delivery Hero was rejected.
  • Tigress Financial raised its Uber price target to $115 on June 12.
  • Uber trades below all major moving averages, with a death cross still in place from January.

Uber Technologies Inc (NYSE:UBER) shares declined more than 2% on Friday, lagging a broader market advance that saw the Nasdaq gain 0.27% and the S&P 500 rise 0.39%. The underperformance came as investors focused on company-specific developments rather than the wider market tone.

Attention centred on a reported bid by Uber for Delivery Hero, a move analysts say would make strategic sense given Uber's ambitions to strengthen its food delivery footprint across Latin America, the Middle East, and parts of Asia. According to BNP Paribas, Uber's reported offer of 33 euros per share, equivalent to roughly $38, was rejected, with investors said to be seeking at least 40 euros per share, or about $46.

While the brokerage sees a clear strategic rationale for further consolidation in food delivery, it cautioned that any transaction would likely weigh on Uber's near-term growth rate and profit margins, even if cost synergies could offset some pressure over time. BNP Paribas also flagged potential regulatory scrutiny given Uber's scale, though deals in markets where Uber has a smaller presence may face fewer hurdles.

The brokerage noted that investor sentiment around the deal has been neutral to negative, partly reflecting concerns over autonomous vehicle disruption and Uber's heavy investment in AV initiatives. Despite this, BNP Paribas maintained a positive rating on Uber stock and reiterated a $108 price forecast, implying significant upside from current levels.

Broader analyst sentiment remains constructive, with Uber carrying a Buy consensus rating and an average price forecast near $106. Tigress Financial raised its target to $115 on June 12, while BTIG and DA Davidson both maintained Buy ratings with targets of $100 and $107 respectively in late May.

From a technical standpoint, Uber stock remains in a bearish posture, trading below its 20-day, 50-day, 100-day, and 200-day moving averages. The death cross formed in January continues to act as a negative signal, with momentum indicators including the MACD remaining weak. Resistance near $78.50 has capped previous rally attempts.

Given Uber's significant weighting in ETFs such as the Tremblant Global ETF and Pacer US Cash Cows Growth ETF, flows into or out of these funds could continue to influence UBER stock price action in the near term.