Uber Stock Is Dropping After Earnings Because Its Revenue Wasn’t Quite What the Market Was Expecting
Full Answer
Why does Uber keep losing money?
Jul 28, 2021 · Uber shares drop as Softbank plans to sell shares to cover Didi and other losses
Does the Uber stock jump make sense?
Aug 20, 2021 · UBER stock is still drifting lower due to its high cash burn level, although improving, that could lead to a 20% lower price. A month ago I wrote that Uber (NYSE: UBER) was likely to fall 20% from...
Why is Uber still considered as a startup company?
Nov 05, 2019 · Shares of Uber ( UBER -4.39%) have plunged today, down by 9% as of 2:30 p.m. EST, after the company reported third-quarter earnings. The results beat expectations, but investors expressed ...
Is Uber stock worth buying?
Dec 10, 2021 · Uber's stock price dropped significantly since late-November due to the emergence of a new COVID variant, regulatory concerns, and the drop in the market value of its investment in DIDI.
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Aug 11, 2021 · Today we will illustrate that over-reaction point with Uber (NYSE: UBER) stock. Last year, investors sold it down too harshly and to extremes. Then like magic, they loved it again and too much ...
Why did Uber's stock drop?
Is Uber a good stock to buy right now?
Is Uber stock expected to rise?
The 41 analysts offering 12-month price forecasts for Uber Technologies Inc have a median target of 50.00, with a high estimate of 74.00 and a low estimate of 15.00. The median estimate represents a +91.64% increase from the last price of 26.09.
Is Uber a Buy Sell or Hold?
Is Disney stock a buy hold or sell?
Is Starbucks a buy?
What is the target price for Uber?
What is the projection for UBER stock?
What is the uber stock target?
| High | $80.00 |
|---|---|
| Median | $60.00 |
| Low | $28.00 |
| Average | $58.80 |
| Current Price | $31.33 |
What dividend does Uber pay?
Wiping the Lipstick Off of UBER
First, who cares about revenue growth, if the company’s lines of business are still making losses?
Cash Burn Is Still High Although Improving
The acid test for a loss-making company like this is its free cash flow (FCF) – how much cash is it burning? For the six months ending June, cash flow from operations was negative $952 million, as seen in its cash flow statement. After subtracting capex spending of $128 million, its FCF was over $1 billion (negative $1.08 b).
What To Do With UBER Stock
But seriously, wake me up when that happens. At that point, I suspect there will be ample opportunity to invest in UBER stock, probably at a lower price compared to today.
What happened
Shares of Uber ( UBER -2.88% ) have plunged today, down by 9% as of 2:30 p.m. EST, after the company reported third-quarter earnings. The results beat expectations, but investors expressed skepticism that the ride-hailing leader can become profitable.
So what
Revenue came in at $3.8 billion, ahead of the $3.7 billion in sales that analysts were expecting. The company continues to post considerable losses, though, to the tune of $1.2 billion during the quarter, or $0.68 per share. That was less red ink than the $0.81-per-share loss that investors were bracing for.
Now what
Uber also set an ambitious goal of becoming profitable on an adjusted EBITDA basis for full-year 2021, although the tech company was unable to provide much granular detail regarding achieving profitability.
Summary
Uber's stock price dropped significantly since late-November due to the emergence of a new COVID variant, regulatory concerns, and the drop in the market value of its investment in DIDI.
Elevator Pitch
My Buy investment rating for Uber Technologies, Inc. ( UBER) remains unchanged.
Why Did Uber Stock Drop?
In my prior September 20, 2021 article, I had rated UBER's shares as a BUY based on my views that "the fears of adverse regulations are largely overblown, and the supply-demand dynamics for the company's core ride-sharing business should eventually turn favorable."
Is Uber Stock Expected To Rise Again?
I think that Uber stock should recover its recent losses and rise again in time to come.
UBER Stock Is in Good Hands
Kudos to the management team for navigating such difficulties with relative ease. The trailing 12 month revenues are now back to 2019 levels. Looking back four years, it is up 65%.
Somewhere in the Middle Is Right
Technically, last week’s lows were perfect entry opportunities. The stock broke out last November from exactly that area after many tries.
The Outside Risks
The macroeconomic conditions are unusual to say the least. The scenario we have now has never happened before. This leaves the Fed and the White House in an experimental phase. They are making it up as they go, and that’s not an insult. Rates have never been lower, the stimulus have never been more massive, so it is all new to them too.
What is Uber stock worth in 2020?
Uber Technologies' stock was trading at $26.24 on March 11th, 2020 when COVID-19 reached pandemic status according to the World Health Organization. Since then, UBER stock has increased by 81.2% and is now trading at $47.55. View which stocks have been most impacted by COVID-19.
Who bought Uber Technologies?
UBER stock was acquired by a variety of institutional investors in the last quarter, including Hodges Capital Management Inc., and Weaver Consulting Group. Company insiders that have bought Uber Technologies stock in the last two years include Dara Khosrowshahi, and Robert Eckert.
