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Uber (UBER) is Reportedly Looking to Sell Self-Driving Unit
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Per a TechCrunch report, Uber Technologies (UBER - Free Report) is in talks with Aurora Innovation, a self-driving technology startup, to sell its self-driving unit Advanced Technologies Group or ATG.
Going by the data, discussions between the concerned parties regarding the sale of Uber ATG have been in progress since October. However, terms of the negotiations are not disclosed. Notably, Aurora Innovation was founded in 2017 by three veterans of the autonomous vehicle industry who had earlier overseen projects at Tesla (TSLA - Free Report) , Google and Uber.
In the event of the talks materializing, Uber will be able to get rid of the ATG unit, which according to the report represents its last big, expensive holding. Notably, the ATG unit was valued at $7.25 billion last year post a $1-billion investment from Toyota Motor (TM - Free Report) , DENSO and SoftBank’s Vision Fund.
By shedding this costly unit, Uber will be able to focus on its core areas of strength, namely ride hailing and delivery. Notably, the net loss at ATG and Other Technology Programs was $303 million for the first nine months of 2020.
Notably, Uber has been looking to shed its unprofitable and expensive segments for quite some time in a bid to combat the mounting losses. Due to the current downturn in its Mobility (rides) operations, Uber’s efforts to expand its Eats business are laudable. In this regard, the company is looking to acquire Postmates to bolster its presence in the in the food delivery market. This $2.65-billion worth deal is expected to close in the final quarter of 2020.
The stock has witnessed the Zacks Consensus Estimate for current-year earnings being revised 43.2% upward over the past 60 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Uber (UBER) is Reportedly Looking to Sell Self-Driving Unit
Per a TechCrunch report, Uber Technologies (UBER - Free Report) is in talks with Aurora Innovation, a self-driving technology startup, to sell its self-driving unit Advanced Technologies Group or ATG.
Going by the data, discussions between the concerned parties regarding the sale of Uber ATG have been in progress since October. However, terms of the negotiations are not disclosed. Notably, Aurora Innovation was founded in 2017 by three veterans of the autonomous vehicle industry who had earlier overseen projects at Tesla (TSLA - Free Report) , Google and Uber.
In the event of the talks materializing, Uber will be able to get rid of the ATG unit, which according to the report represents its last big, expensive holding. Notably, the ATG unit was valued at $7.25 billion last year post a $1-billion investment from Toyota Motor (TM - Free Report) , DENSO and SoftBank’s Vision Fund.
By shedding this costly unit, Uber will be able to focus on its core areas of strength, namely ride hailing and delivery. Notably, the net loss at ATG and Other Technology Programs was $303 million for the first nine months of 2020.
Notably, Uber has been looking to shed its unprofitable and expensive segments for quite some time in a bid to combat the mounting losses. Due to the current downturn in its Mobility (rides) operations, Uber’s efforts to expand its Eats business are laudable. In this regard, the company is looking to acquire Postmates to bolster its presence in the in the food delivery market. This $2.65-billion worth deal is expected to close in the final quarter of 2020.
Zacks Rank & Key Pick
Uber currently carries a Zacks Rank #3 (Hold). Investors interested in the broader Computer and Technology sector may consider the better-ranked stock The Trade Desk (TTD - Free Report) , which sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock has witnessed the Zacks Consensus Estimate for current-year earnings being revised 43.2% upward over the past 60 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>