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Can someone explain why Uber stock is up 7% today then? Is it because Uber's expenditure will decrease because of the layoffs?

by nulptr 6y ago

spyspy 6y ago
The entire market is up on Powell’s positive remarks on the economy’s recovery.
- rwc 6y ago
  And the Moderna vaccine progress announcement this morning
deleted 6y ago
[deleted]
cactus2093 6y ago
There's not always a true, causal explanation of why stocks are reacting as they are. Don't be too quick to trust cable news anchors or other stock market shills that make a living making up and touting stock market narratives. By definition a stock price is a split of the public consensus of what's happening, just as many people are selling as buying at that price. Your explanation seems as good as any.
macksd 6y ago
It's not unusual for stocks to go up on layoffs, but as others have commented there isn't always a simple explanation either. But it wasn't a secret that Uber was going to be getting hit hard by quarantine - it would probably already be priced into the stock by the point. The news today is that Uber's leadership is recognizing that and aggressively taking action to protect the bottom line - sucks in the short-term for employees, especially those directly affected, but that's great news for investors.
rvz 6y ago
> Is it because Uber's expenditure will decrease because of the layoffs? Yes. This is Uber's way of saying to their investors that their costs will decrease due to losing billions during the coronavirus outbreak, thus head count must be decreased. But some who are buying now, may see this as a way of selling at the "bull trap" in Q2.
akmarinov 6y ago
Stocks are always trying to predict the future, having these layoffs makes people think that they're getting leaner and organizing, I guess.
nojito 6y ago
Because UBER has tremendous bloat. All COVID did was accelerate the inevitable.

Can someone explain why Uber stock is up 7% today then? Is it because Uber's expenditure will decrease because of the layoffs?

by nulptr 6y ago

Can someone explain why Uber stock is up 7% today then? Is it because Uber's expenditure will decrease because of the layoffs?

spyspy 6y ago

The entire market is up on Powell’s positive remarks on the economy’s recovery.

rwc 6y ago
And the Moderna vaccine progress announcement this morning

deleted 6y ago

[deleted]

cactus2093 6y ago

There's not always a true, causal explanation of why stocks are reacting as they are. Don't be too quick to trust cable news anchors or other stock market shills that make a living making up and touting stock market narratives. By definition a stock price is a split of the public consensus of what's happening, just as many people are selling as buying at that price. Your explanation seems as good as any.

macksd 6y ago

It's not unusual for stocks to go up on layoffs, but as others have commented there isn't always a simple explanation either. But it wasn't a secret that Uber was going to be getting hit hard by quarantine - it would probably already be priced into the stock by the point. The news today is that Uber's leadership is recognizing that and aggressively taking action to protect the bottom line - sucks in the short-term for employees, especially those directly affected, but that's great news for investors.

rvz 6y ago

> Is it because Uber's expenditure will decrease because of the layoffs? Yes. This is Uber's way of saying to their investors that their costs will decrease due to losing billions during the coronavirus outbreak, thus head count must be decreased. But some who are buying now, may see this as a way of selling at the "bull trap" in Q2.

akmarinov 6y ago

Stocks are always trying to predict the future, having these layoffs makes people think that they're getting leaner and organizing, I guess.

nojito 6y ago

Because UBER has tremendous bloat. All COVID did was accelerate the inevitable.