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Sept. 3, 2021, 9:12 a.m. EDT

Uber to benefit from a government takeover of Didi given its more than $5 billion stake, analyst says

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By Tomi Kilgore

Shares of Uber Technologies Inc. /zigman2/quotes/211348248/composite UBER +7.36% rose 0.5% in premarket trading Friday, as the ride-sharing company was set to benefit from a potential investment in China-based rival Didi Global Inc. /zigman2/quotes/227703899/composite DIDI +9.88% by China's government, according to Gordon Haskett analyst Robert Mollins. Didi's stock jumped 4.8% ahead of Friday's open after Bloomberg reported that China had proposed making an investment. Uber has disclosed that it owned about $6.3 billion worth of Didi's stock at the end of 2020, and said it sold $207 million worth of its investment in January and had agreed to sell another $293 million worth of Didi shares in the first half of 2021. "If the Bloomberg article proves to be true, we see this as a positive for Uber," Gordon Haskett's Mollins wrote in a note to clients. "Uber has been very upfront about wanting to monetize its stake in Didi and we see a transaction with Beijing as a way to sell a ~$5B stake in the company without driving Didi's share price down as a result of selling on the open market." Uber's stock has dropped 15.0% over the past three months through Thursday while the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.17% has gained 8.2%.

/zigman2/quotes/211348248/composite
US : U.S.: NYSE
$ 38.49
+2.64 +7.36%
Volume: 36.69M
Dec. 6, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$69.55 billion
Rev. per Employee
$488,553
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/zigman2/quotes/227703899/composite
US : U.S.: NYSE
$ 6.67
+0.60 +9.88%
Volume: 43.91M
Dec. 6, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$29.28 billion
Rev. per Employee
$1.29M
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/zigman2/quotes/210599714/realtime
US : S&P US
4,591.67
+53.24 +1.17%
Volume: 2.58B
Dec. 6, 2021 5:09p
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