Uber Technologies (UBER) stock is higher Tuesday after the ride-hailing company beat top- and bottom-line expectations for its second quarter.
In the three months ended June 30, Uber said its revenue increased 16% year-over-year to $10.7 billion, driven by nearly 19% growth in gross bookings to $40 billion. Its earnings per share (EPS) improved to 47 cents from 18 cents in the year-ago period.
"Uber's growth engine continues to hum, delivering our sixth consecutive quarter of trip growth above 20 percent, alongside record profitability," said Uber CEO Dara Khosrowshahi in a statement. "The Uber consumer has never been stronger – more people are using the platform, and more frequently, than ever before – while drivers and couriers earned a new all-time high of $17.9 billion over the quarter."
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 easily topped analysts' expectations. Wall Street was anticipating revenue of $10.6 billion and earnings of 31 cents per share, according to CNBC.
For the third quarter, Uber said it anticipates gross bookings in the range of $40.25 billion to $41.75 billion, representing year-over-year growth of 18% to 23%. However, the midpoint of this range, $41 billion, came up just short of analysts' forecasts for gross bookings of $41.2 billion.
Is Uber stock a buy, sell or hold?
Uber Technologies has lagged the broad market this year, up 2.4% on a price return basis vs the S&P 500's 9.9% gain. Still, it's one of analysts' top-rated stocks.
According to S&P Global Market Intelligence, the average analyst target price for the tech stock is $86.76, representing implied upside of nearly 40% to current levels. Additionally, the consensus recommendation is a Strong Buy.
BofA Securities is one of those with a bullish outlook on Uber stock.
"Uber should benefit from secular shifts to the sharing economy (Mobility), time-saving services (Delivery), and a move to more efficient marketplaces (Freight)," said BofA analyst Justin Post in a July 31 note. "We are constructive on fundamentals given a large total addressable market (TAM) and technology advances that likely lower driver dependency and improve margins. We think the stock should trade at a premium to direct peers given share leadership and potential network effects."
Post has a Buy rating and an $87 price target on Uber Technologies.
Related Content
-
An HSA Sounds Great for Taxes: Here’s Why It Might Not Be Right for YouHealth Savings Even with the promise of ‘triple tax benefits,’ a health savings account might not be the best health plan option for everyone.
-
Emergency Tax Bill Ends $6,000 Senior Deduction and Tip, Overtime Tax Breaks in D.C.Tax Law Here’s how state tax conformity rules could immediately raise your income tax liability.
-
Fish and Chips? More Like Fish and a Side of Customer Confusion and AngerYou expect chips — French fries, actually — to come with your order of fish and chips? Think again. This restaurant could be violating the truth-in-menu laws.
-
What the 2026 Tax Landscape Means for Advisers, From a Financial PlannerThe OBBB's impacts on 2026 are taking shape, amplifying the need for financial advisers' expertise in transforming stability into strategy for their clients.
-
From Vision to Value: A Blueprint for Helping to Build Your Advisory PracticeAs a financial professional, you can draw lessons from Advisors Excel's journey to find ideas, strategies and inspiration for growing your own advisory business.
-
Risk Is On Again, Dow Jumps 381 Points: Stock Market TodayThe stock market started the week strong on signs the government shutdown could soon be over.
-
I'm an Investment Adviser: Here's Why You Should Resist a Zero-Down MortgageWhile it's certainly enticing, a zero-down mortgage comes with significant risks, especially if home values decline or you want to refinance.
-
I'm Embarrassed to Ask: What Is a Life Insurance Trust?Life insurance trusts, particularly irrevocable life insurance trusts (ILITs), can minimize estate taxes and protect your heir's inheritance.
-
Are Your Employees Quietly Cracking? How to Repair the Cracks Before Everything BreaksSome employees who are unable to change jobs due to economic conditions are doing only the bare minimum, leading to decreased work quality and team morale.
-
Headed for the Retirement Red Zone? This Eight-Step Game Plan Helps to Avoid FumblesThese strategies help safeguard your nest egg and ensure long-term financial success during the five years before retirement and the five years after.
