Anytime a big voting event comes around, certain stocks are deemed winners and losers as the results roll in. Investors should pay attention to the ballot measures that are passed, as they can offer insight into which industries are likely to rally. Yesterday, three particular industries received favorable results that could mean big things for certain companies going forward.
Thanks to the latest policy changes in several states, it appears that ridesharing, sports betting, and cannabis companies might be in for some upside going forward. 3 stocks in those respective industries look like solid buys at this time. Let’s take a deeper look at them below.
Uber Technologies (NYSE:UBER)
Shares of the ridesharing company Uber have been through a bumpy ride over the last few months thanks to the pandemic. Ridesharing volumes were down significantly during the first half of the year as the pandemic disrupted transportation measures across the nation. The stock was also under fire thanks to the impending vote on Proposition 22 in California, which classifies app-based drivers as independent contractors and not employees. California voters passed the controversial ballot measure yesterday, which is a big win for ridesharing companies like Uber since they won’t be required to pay for their drivers’ labor benefits.
Now that the market has clarity on this issue, it might be a great time to add shares of the largest ridesharing company. As the economy continues to reopen and we make progress in controlling the pandemic, Uber’s earnings should rebound sharply. There’s a good chance that Uber reports its first profit in 2021 as it continues to take advantage of secular trends related to transportation and food delivery markets. The company has a strong liquidity position with over $7.8 billion in cash and investors should be optimistic about the investments that Uber is making in autonomous driving. The company’s stock was up over 14% during the trading session following the news.
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