Uber's Profit Takes A Hit Despite Revenue Uptick, Stock Tanks
Portfolio Pulse from Anusuya Lahiri
Uber Technologies, Inc. (NYSE:UBER) reported a 15% year-on-year revenue increase to $10.10 billion for the fiscal first quarter of 2024, slightly below the analyst consensus of $10.11 billion. The company experienced a GAAP EPS loss of 32 cents, missing the consensus estimate of a 23 cents loss, leading to an 8.31% drop in stock price premarket. Revenue growth was seen across Mobility and Delivery segments, but Freight revenue declined. Despite higher gross bookings and active platform consumers, Uber recorded a net loss, attributed to mark-to-market losses on investments. The company forecasts Q2 gross bookings between $38.75 billion and $40.25 billion, with adjusted EBITDA expectations of $1.45 billion to $1.53 billion.
May 08, 2024 | 12:37 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Uber's Q1 2024 earnings report showed revenue growth but a wider-than-expected GAAP EPS loss, leading to an 8.31% premarket stock price drop. The company's performance was mixed, with growth in Mobility and Delivery but a decline in Freight. Investment markdowns contributed to the net loss.
Uber's stock price is likely to face short-term pressure due to the reported wider-than-expected loss per share and the slight miss on revenue expectations. The premarket price action reflects immediate investor reaction to the earnings miss and concerns over investment markdowns. However, the company's positive outlook and growth in key segments may provide some support.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100