Uber Technologies (UBER) stock is down nearly 9% midday in Wednesday's trading session after the ride-hailing firm reported an unexpected loss in its first quarter.
In the three months ended March 31, Uber's revenue increased 14.8% year-over-year to $10.1 billion, driven by a 19.9% rise in gross bookings to $37.7 billion. Its net loss widened to $654 million, or 32 cents per share, from $157 million, or 8 cents per share, in the year-ago period. The company noted that its net loss included "a $721 million net headwind (pre-tax) due to net unrealized losses related to the revaluation of Uber's equity investments."
"Our results this quarter once again demonstrate our ability to deliver consistent, profitable growth at scale,” Uber CEO Dara Khosrowshahi said in a statement. "More than 7 million people now choose to earn flexibly on Uber every month, with driver earnings of $16.6 billion continuing to grow faster than our topline."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results were mixed compared with analysts' expectations, which had called for revenue of $10.1 billion and earnings of 23 cents per share, according to CNBC.
For the second quarter, Uber said it expects gross bookings in the range of $38.75 billion to $40.25 billion and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) in the range of $1.45 billion to $1.53 billion.
The Q2 outlook is inline with Wall Street's expectations, which calls for gross bookings of $40 billion and adjusted EBITDA of $1.49 billion.
"Demand for Uber remains robust across our platform, supported by our improving marketplace experience, the continued shift of consumer spending from goods to services, and the secular trend towards on-demand transportation and delivery," Khosrowshahi said in prepared remarks.
What is the prediction for Uber stock?
Wall Street is bullish on the tech stock, which joined the S&P 500 last December. According to S&P Global Market Intelligence, analysts' average target price for Uber is $86.92, representing implied upside of over 35% to current levels. Additionally, the consensus recommendation is a Strong Buy.
Jefferies is one of those with a bullish outlook on Uber stock. The financial services firm has a Buy rating and $103 price target on UBER, representing implied upside of more than 59% to current levels.
In an April note raising its price target to $100 from $95, Jefferies said, "UBER is increasingly leveraging an expanded Mobility product suite to address more use cases, which is driving increased user adoption and multi-product attachment."
More recently, Jefferies lifted its target price on May 7 to $103 from $100 on optimism surrounding Uber's recently announced partnership with grocery delivery firm Instacart (CART).
Related Content
-
Tax Credit vs. Tax Deduction: What’s the Difference?Tax Breaks Your guide to tax deductions and credits, how the IRS treats them differently, and how they impact your tax bill.
-
Why Now May Be a Good Time to Invest in CommoditiesYou may want to consider adding inflation-hedging commodities such as bitcoin and gold to your portfolio.
-
For a More Secure Retirement, Build in Some 'Safe Money'To solidify your retirement plan, write it down, reduce your market risk and allocate more safe money into your plan for income.
-
Five Steps to a Mindfully Fearless CareerIf, like many women, you're struggling with imposter syndrome, try developing an athlete's winning mindset. It's as simple as facing one small fear every day.
-
Stock Market Today: Stocks Rally Despite Rising Geopolitical TensionThe main indexes were mixed on Tuesday but closed well off their lows after an early flight to safety.
-
What's at Stake for Alphabet as DOJ Eyes Google's ChromeAlphabet is higher Tuesday even as antitrust officials at the DOJ support forcing Google to sell its popular web browser. Here's what you need to know.
-
Lowe's Stock Is Falling After Earnings. Here's WhyLowe's stock is lower Tuesday as Wall Street weighs a beat-and-raise quarter against declining revenue. This is what you need to know.
-
Why Walmart Stock's a Buy After Its Beat-And-Raise QuarterWalmart is the best Dow Jones stock Tuesday after the retail giant's solid earnings report and outlook and Wall Street thinks it's just getting started. Here's what they're saying.
-
Winners and Losers of Fed Rate CutsNavigating interest-rate changes can seem daunting, but these areas of the fixed-income market could perform better (or worse) than others.
-
Six Ways to Optimize Your Charitable Giving Before Year-EndAs 2024 winds down, right now is the time to look at how you plan to handle your charitable giving. The sooner you start, the more tax-efficient you can be.
