Uber Technologies (UBER) is having a rough week. Shares continued their downward slide Tuesday after federal regulators ramped up their case against the rideshare giant over what they're calling deceptive subscription billing and cancellation practices.
What's Going On? The Federal Trade Commission, teaming up with 21 states and the District of Columbia, filed an amended complaint that pulls no punches. According to regulators, Uber has been charging customers for subscriptions they never consented to, failing to deliver the savings it promised, and making it absurdly difficult to actually cancel those subscriptions.
Here's where it gets interesting: The complaint alleges that canceling an Uber subscription can require as many as 32 separate actions spanning 23 different screens. That's not a user experience problem—that's allegedly a feature designed to wear people down until they give up.
The FTC says Uber violated the Restore Online Shoppers' Confidence Act, a 2010 law designed to protect consumers from exactly this kind of thing, along with various state laws. The lawsuit, filed in the U.S. District Court for the Northern District of California, notes that the participating states can seek refunds, restitution, and other relief for affected customers.
The Technical Picture Looks Rough From a chart perspective, Uber is showing clear bearish signals. The stock is trading 7.9% below its 20-day simple moving average, 12.4% below its 50-day, and 13.4% below its 100-day—not exactly the setup bulls want to see.
The Relative Strength Index sits at 34.41, hovering in neutral territory but leaning toward oversold levels. Meanwhile, the MACD indicator remains below its signal line, confirming continued bearish momentum.
Traders are watching key support around $69.50 and resistance near $93.50. A move toward support could trigger a bounce, but breaking below that level might signal more pain ahead. On the flip side, pushing through resistance could indicate the beginning of a trend reversal.
There's a silver lining, though: Over the past 12 months, Uber shares are still up a solid 33.44%. That longer-term performance suggests there's some underlying strength worth monitoring, even as near-term technicals flash warning signs.
Price Action: At the time of publication Tuesday, Uber shares were down 1.69% to $80.49.
