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Uber stock is surging Tuesday on strong volume as investors are betting on a ride-share recovery in 2021.

Shares hit all-time highs of over $58 in intraday trading, leaving the tech giant with a market cap pushing $107 billion.

The stock’s strong performance continues a hot streak after rebounding from March lows of $21.33 per share. The recent upswing comes in spite of a rough third quarter, which saw gross bookings decline 10% year-over-year to $14.7 billion due to COVID-19 related weakness.

COVID-19 lockdowns dealt a serious blow to the global ride-share market in 2020, which is now expected to drop in value from $60.5 billion in 2019 to just $52.07 billion.

Uber’s profitability also remains an issue as its adjusted EBITDA loss increased by over $40 million year-over-year in the third quarter.

SoftBank Group Corp.’s Vision Fund announced  on Monday that it sold about $2 billion in Uber stock on January 7 at an average price of $53.46 per share. Following the transaction, the Japanese investment firm headed by Masayoshi Son will retain 184.2 million shares, worth over $10.6 billion as of Tuesday.

The SoftBank sale comes on the back of Uber’s recently inked deal with Moderna, which will see Uber and the biotech giant come together to fight COVID-19.

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Another initiative getting attention from investors is Uber’s push to go green.

The company has pledged to be a zero-emission company with all-electric vehicles by 2040. In response to this challenge, the ride-sharing juggernaut launched Uber Green, an option that lets customers pay a little more to get an electric or hybrid car.

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So far, Uber Green has been available in only select European cities, but now Uber plans to expand that number to over 1,400 locations, including cities in the US and Canada.

Drivers of all clean cars will also get an extra $0.50 for every ride, while those boasting zero-tailpipe-emission cars are set to get an additional $1.

Shares of Uber were trading at $57.95 as of 1:55pm E.T. on Tuesday .

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Source:: Business Insider


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