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."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
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 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
-
Kickstart Your 2026 Retirement Plan NowRetirement can feel far-off, or too close for comfort, depending on where you’re at. But one thing’s clear — now is the ideal time to get your retirement plan in order.
-
Four Clever and Tax-Efficient Ways to Ditch Concentrated Stock Holdings, From a Financial PlannerHolding too much of one company's stock can put your financial future at risk. Here are four ways you can strategically unwind such positions without triggering a massive tax bill.
-
Four Clever and Tax-Efficient Ways to Ditch Concentrated Stock Holdings, From a Financial Planner
Holding too much of one company's stock can put your financial future at risk. Here are four ways you can strategically unwind such positions without triggering a massive tax bill.
-
Beyond Banking: How Credit Unions Serve Their CommunitiesCredit unions differentiate themselves from traditional banks by operating as member-owned financial cooperatives focused on community support and service rather than shareholder profit.
-
S&P 500 Hits New High After Oracle Earnings: Stock Market TodayAnother down day for Apple held the Dow Jones Industrial Average back, though.
-
StubHub IPO: Should You Buy STUB Stock?The highly anticipated StubHub IPO is right on our doorstep, with the online ticket marketplace expected to start trading later this month.
-
What Your Portfolio Says About You – and Your Relationship with RiskHow well do you understand yourself and your risk tolerance? Being able to answer this question will help you become a better investor.
-
Answers to Every Early Retiree's Questions This Year, From a Wealth AdviserFrom how to retire in a crazy market to how much to withdraw and how to spend without feeling guilty, a financial pro shares the advice he's given this year.
-
The Risks of Forced DST-to-UPREIT Conversions, From a Real Estate ExpertSome new Delaware statutory trust offerings are forcing investors into 721 UPREIT conversions at the end of the hold period, raising concerns about loss of control, limited liquidity, opaque valuations and unexpected tax liabilities.
-
Stocks Grind Up to New All-Time Highs: Stock Market TodayUnitedHealth stock led the Dow Jones Industrial Average amid increasing signs the labor market has not been well for months.
