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Uber traders buy the dip, Roku drops, Robinhood plunges as Weber surges

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Yahoo Finance’s Jared Blikre reports on the day's trending tickers.

Video Transcript

Well, let's head over to Jared right now who's standing by in the studio, not to talk about oil, but to talk about today's trending tickers. Jared, let's start with Uber.

JARED BLIKRE: Yeah, the big one here. And as you said, nearly 90% have had beats this earnings season. Uber is not one, yet, it's up 3 and 1/2%. Let's take a look at the intraday price action. You can see we did begin in the red. We are off the highs, but still 3 and 1/2%. Not bad, given the size of the miss. And I do have some analyst commentary, really just kind of focusing on what is in store here for the company in the future.

So, yeah, they have higher costs, and they had to pay for higher driver incentives and that weighed on their margins as well. So let's see what Barclays is saying. They hold it with an overweight. Price target, they lowered it to $63 from $72. They're saying they missed on revenue and earnings owing to lower take rate on ridesharing, and that's driven by higher incentives offered to boost driver numbers. And we're going to be taking a look at labor tomorrow morning with that big payroll report.

But higher costs for Uber. Results show a solid recovery, albeit with incremental costs which is muddying the bull case around the ridesharing sector to a degree, and also would buy into any weakness. Well, that's what happened this morning, right? As industry-- as the industry will be in a much better place on volume, price, take rate and profitability by November, and the bear case on Uber and Lyft seems based on temporary factors.

Just want to note that Lyft, the other day, actually managed to report in EBITDA, an adjusted EBITDA profit, for the first time. Guys?

ALEXIS CHRISTOFOROUS: Now I'm looking at our trending tickers page here, Jared, and I see Roku hasn't been on the list in quite some time. I know they were out with earnings, and I guess they disappointed when it came to numbers of hour streaming and also users. Tell us about that.

JARED BLIKRE: That was huge. The numbers were not good on that front. In fact, they missed the mark on billions of hours by billions, and that's a huge mess there. So let's check out what the Street is saying about Roku, and actually, let me just zoom out to a one-year chart. Instructive to note that it's been in a trading range for most of this year, but still sitting on 143% gains.

Now the big question is, are those going to continue? And there is evidence in this report that it's not. So let's scroll down to some analysts' commentary here. We see Citi recommending a buy. They expect shares to be under pressure, given Roku remains a net add story. That's dealing with their subscription numbers. Wells Fargo recommending an overweight holding. They cut the price target to $488 from $519, saying they remain bullish on the name as average revenue per user growth continues to impress.

And broker, the broker thinks the average revenue per user story will win the day. Finally, likely to be a hotly-debated name in the medium term, with account growth and streaming hours likely to decelerate for a number of reasons. And a lot of those reasons have to do with the fact that people are finally getting out. Not bad for the country as a whole, though.

All right, Jared, let's talk about Robinhood. Because what a reversal here. We were talking about how they were soaring, and now down over 15%. What is happening there?

JARED BLIKRE: Well, I'll tell you what. Let me put this in a candlestick chart so we can see the price action over the last few days. This only goes back to last Friday. They listed last Thursday, but we did see that breakout past their IPO price of $38, then we had the ability-- or traders had the ability-- to buy calls on it or trade in the options market and we saw a huge run up there, to about $80 and change.

Now we've come back down, and it looks like a simple consolidation pattern. So on day two, being able to hold $60, or $59.54, close enough, pretty impressive. But we've seen with these meme stocks, and no reason to think that Robinhood isn't a meme stock right now, we've seen that they can come back to Earth quite quickly, even if they eventually resurge.

Also want to take a look at Webber. I was down at the New York Stock Exchange this morning. Thank you for the hot dog. Not going to cloud my judgment on the technical analysis, though. This is a simple consolidation pattern that we see intraday. First day of trading, not bad. They IPOd at $14, opened up at $17, and now just kind of in the middle, or at the upper end of that range.