Is Uber Stock a Buy, Hold or Sell After Earnings?
Uber stock is sinking Thursday after the ride-hailing firm came up short of a key Q3 metric, but analysts have yet to adjust their ratings.
Uber Technologies (UBER) is one of the worst S&P 500 stocks in Thursday's session after the ride-hailing company beat top- and bottom-line expectations for its third quarter, but came up just short on another key metric.
In the three months ended September 30, Uber said its revenue increased 20.4% year over year to $11.2 billion, driven by a 16.1% rise in gross bookings to $41 billion. Its earnings per share (EPS) improved to $1.20 from 10 cents in the year-ago period.
"We delivered yet another record quarter of profitable growth at a global scale, reflecting the strength of our platform, which now has over 25 million Uber One members," said Uber CEO Dara Khosrowshahi in a statement. "We continue to build with an eye towards the future, optimizing our products for new customer segments and geographies, introducing Rider Verification nationwide to increase safety for drivers, and launching shuttles to airports and venues."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free 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 headline results topped analysts' expectations. Wall Street was anticipating revenue of $10.98 billion and earnings of 41 cents per share, according to CNBC. However, gross bookings came in just shy of expectations for $41.25 billion.
For its fourth quarter, Uber said it expects to achieve gross bookings in the range of $42.75 billion to $44.25 billion, representing growth of 16% to 20% from the year-ago period. However, the midpoint of this range, $43.5 billion, came up just shy of the $43.7 billion in gross bookings Wall Street anticipates.
Is UBER stock a buy, sell or hold?
Heading into today's trading, Uber Technologies was up 29% for the year to date and Wall Street was targeting even more upside for the industrial stock.
According to S&P Global Market Intelligence, the average analyst target price for UBER stock is $88.86, representing implied upside of nearly 12% to its October 30 close. Additionally, the consensus recommendation is a Buy.
Financial services firm Wedbush is one of those with an Outperform rating (equivalent to a Buy) and a $86 price target on the large-cap stock.
"While we expect the debate related to autonomous vehicles will limit near-term upside for shares, we think management has alleviated some investor concerns in recent months through new and expanded partnerships with leading autonomous-vehicle providers," said Wedbush analyst Scott Devitt in an October 29 note.
These include strategic deals with AV leaders including WeRide and Cruise, but the most notable is a deepened partnership with Waymo that will make its autonomous vehicles available on the Uber app in early 2025, he adds.
Related Content
-
Timeless Trips for Solo TravelersHow to find a getaway that suits your style.
-
A Top Vanguard ETF Pick Outperforms on International StrengthA weakening dollar and lower interest rates lifted international stocks, which was good news for one of our favorite exchange-traded funds.
-
Is There Such a Thing As a Safe Stock? 17 Safe-Enough IdeasNo stock is completely safe, but we can make educated guesses about which ones are likely to provide smooth sailing.
-
A Top Vanguard ETF Pick Outperforms on International Strength
A weakening dollar and lower interest rates lifted international stocks, which was good news for one of our favorite exchange-traded funds.
-
Is There Such a Thing As a Safe Stock? 17 Safe-Enough Ideas
No stock is completely safe, but we can make educated guesses about which ones are likely to provide smooth sailing.
-
Missed Your RMD? 4 Ways to Avoid Doing That Again (and Skip the IRS Penalties), From a Financial PlannerIf you miss your RMDs, you could face a hefty fine. Here are four ways to stay on top of your payments — and on the right side of the IRS.
-
What Really Happens in the First 30 Days After Someone Dies (and Where Families Get Stuck)The administrative requirements following a death move quickly. This is how to ensure your loved ones won't be plunged into chaos during a time of distress.
-
AI-Powered Investing in 2026: How Algorithms Will Shape Your PortfolioAI is becoming a standard investing tool, as it helps cut through the noise, personalize portfolios and manage risk. That said, human oversight remains essential. Here's how it all works.
-
If You'd Put $1,000 Into Caterpillar Stock 20 Years Ago, Here's What You'd Have TodayCaterpillar stock has been a remarkably resilient market beater for a very long time.
-
Good Stock Picking Gives This Primecap Odyssey Fund a LiftOutsize exposure to an outperforming tech stock and a pair of drugmakers have boosted recent returns for the Primecap Odyssey Growth Fund.
-
More Tools to Build a Bond LadderVanguard aims to launch a line of target-maturity corporate bond ETFs.
