Uber Stock Dips 9% After Q1 Earnings, JPMorgan Analyst Says Pullback Overdone
Portfolio Pulse from Nabaparna Bhattacharya
Uber Technologies, Inc. (NYSE:UBER) reported a 15% year-on-year revenue growth to $10.10 billion for fiscal Q1 2024, surpassing EBITDA expectations for the eleventh consecutive quarter. Despite this, Uber's stock fell 9% post-earnings. JPMorgan analyst Doug Anmuth maintains an Overweight rating, considering the pullback excessive. Anmuth highlights Uber's profitable growth in the Delivery category, cross-selling to Grocery & Retail, and a milestone of over one million merchants on the platform.
May 08, 2024 | 6:00 pm
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Uber Technologies, Inc. reported a 15% revenue growth for Q1 2024, surpassing EBITDA expectations. Despite positive performance, the stock experienced a 9% drop, which JPMorgan analyst Doug Anmuth views as an overreaction.
Despite Uber's strong Q1 2024 performance, the stock price dropped significantly. This reaction might be short-lived as the company's fundamentals remain strong, highlighted by its revenue growth, EBITDA performance, and strategic expansions in Delivery and Grocery & Retail. JPMorgan's analysis suggests investor overreaction, indicating potential for recovery as the market digests the earnings details.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100