Uber Tech (UBER)

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Is Uber Stock A Buy Right Now After Reporting Earnings?

by SCOTT LEHTONEN

Uber stock is forming a consolidation with a 64.15 buy point, so the stock isn't a buy right now. Shares are about 20% away from the correct buy point in the current stock market rally.

Uber stock dived 6% Thursday and is about 20% off its 52-week high. Shares are back below their 50-day line.

Source: IBD

https://www.investors.com/research/uber ... src=A00220

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Cyclical Stocks: Uber (UBER)

Recently, I took two trips through ride-sharing service Lyft (NASDAQ:LYFT). I must say that the experience was startlingly normal. In my conversation with both drivers, they were eagerly awaiting a full return to normal. As people come out of quarantine, that translates to more money in their pockets.

Furthermore, one driver mentioned that he got vaccinated as soon as they were available. In his mind, it was ridiculous for Americans not to take advantage of the enormous blessing that the vaccines represent.

Sure, it’s an anecdote but for what it’s worth, the ride-sharing business appears to be back on the upswing. However, with all due respect to Lyft and its drivers, I’m going to give the investment edge to Uber.

Primarily, I say this because UBER stock can go either way. For those that want to venture out, the core ride-sharing business is relevant and features a robust international footprint. Second, the company serves those who still want to self-quarantine with platforms like Uber Eats.

Finally, as said before, air travel demand relative to pre-pandemic levels has been very impressive. And with Uber’s wider footprint, the recovery in the ride-sharing economy could end up being more beneficial to UBER stock.

Source: Investor Place

[winston]

vested

Cyclical Stocks: Uber (UBER)

Recently, I took two trips through ride-sharing service Lyft (NASDAQ:LYFT). I must say that the experience was startlingly normal. In my conversation with both drivers, they were eagerly awaiting a full return to normal. As people come out of quarantine, that translates to more money in their pockets.

Furthermore, one driver mentioned that he got vaccinated as soon as they were available. In his mind, it was ridiculous for Americans not to take advantage of the enormous blessing that the vaccines represent.

Sure, it’s an anecdote but for what it’s worth, the ride-sharing business appears to be back on the upswing. However, with all due respect to Lyft and its drivers, I’m going to give the investment edge to Uber.

Primarily, I say this because UBER stock can go either way. For those that want to venture out, the core ride-sharing business is relevant and features a robust international footprint. Second, the company serves those who still want to self-quarantine with platforms like Uber Eats.

Finally, as said before, air travel demand relative to pre-pandemic levels has been very impressive. And with Uber’s wider footprint, the recovery in the ride-sharing economy could end up being more beneficial to UBER stock.

Source: Investor Place

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Stocks to Avoid: Uber Technologies (UBER)

If you are an Uber driver these days, your pay has gone through the roof.

CEO Dara Khorowshahi said in early May that some drivers are making as much as $40 per hour. That’s because fares have surged to meet the high demand and low driver supply.

According to Business Insider, more than half of Uber’s drivers quit driving during the pandemic. So to get drivers back, it’s upped its driver incentives to put more drivers on the road. Ultimately, Bank of America predicts the current labor shortages will disappear early in 2022.

In the meantime, Uber users will have to get used to much higher fares per ride as surge fares kick in to fill the void.

Long-term, while Uber managed to get more than 100,000 drivers back in May, investors could find that Uber drivers decide the lower wages aren’t worth it once the surge fares disappear. Alternatively, users could decide it’s cheaper to walk.

And, one can’t forget that Uber still loses billions of dollars each year.

Source: Investor Place

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Uber Technologies (NYSE: UBER)

Thanks to the ongoing vaccination drive and economic reopening, Uber is witnessing an improvement in customer demand.

During the last quarter’s conference call, its CEO Dara Khosrowshahi said, “Uber is starting to fire on all cylinders, as more consumers are riding with us again while continuing to use our expanding delivery offerings.” (See Uber stock charts on TipRanks)

While the ride-hailing company gains from an uptick in consumer demand, Bank of America Securities analyst Justin Post sees strong value in the company. The five-star analyst said that Uber stock is trading at a discount to its U.S. peers.

Post has a Buy rating on Uber stock with a price target of $71, implying upside potential of 44.7%.

Overall, Uber stock has a Strong Buy consensus rating based on 22 Buys and 4 Holds. The average Uber Technologies price target of $72.36 implies 47.5% upside potential from current levels.

Source: Tip Ranks

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SoftBank selling about one-third of its stake in Uber to cover Didi losses

It’s planning to sell 45 million shares, which will have a 30-day lockup.

Source: The Standard

https://www.thestandard.com.hk/breaking ... idi-losses

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Uber Technologies

The world’s largest ride-hailing company, Uber Technologies (NYSE:UBER), is scheduled to report Q2 earnings on Wednesday, Aug. 4 after the market close.

According to analyst consensus forecasts, Uber will announce a loss of $0.54 a share on sales of $3.74 billion.

Uber shares have been under pressure this year, falling more than 12%, on concerns that a shortage of drivers will hamper growth as the economy reopens and people restart booking rides.

The San Francisco-based ride services platform told investors in May, that spending on recruiting drivers will impact earnings in the second quarter, creating doubts about the company’s goal to reach profitability by the end of the year.

Despite worker shortages, Chief Executive Officer Dara Khosrowshahi is confident that his company will return a quarterly adjusted profit by the end of the year.

First-quarter results had showed otherwise strong growth of 24% in gross bookings, driven by Uber's food delivery business.

Source: investing.com

https://www.investing.com/analysis/3-st ... s_headline

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Uber Technologies Inc. (NYSE: UBER) has performed the weakest out of the group, with its share price down about 15% year to date, though it is still up roughly 44% from this time last year.

Despite this, Uber was initiated with a Buy rating and a $65 price target. That suggests upside of roughly 50% from the most recent closing price of $43.46.

Gordon Haskett views Uber as a company that will further engrain itself in the everyday lives of consumers. Ultimately, this could lead to share gains across both ride shares and delivery, resulting in upward top-line and bottom-line revisions in the years to come.

In the near term, Uber offers investors exposure to the reopening trade and defense against a prolonged COVID-19 backdrop in the form of its delivery service. Again, Gordon Haskett is playing on the convenience trade and sees Uber as well positioned to benefit from this structural shift.

Uber stock traded up 1% to $43.97, and it has a consensus price target of $69.11. The stock has a 52-week trading range of $28.48 to $64.05.

Source: 24 /7 Wall Street

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Uber Stock: Ride Share Company Posts Mixed Second-Quarter Results

Earnings per share top estimates, but EBITDA loss comes in wider than expected.

by TOM BEMIS

The ride-sharing giant topped Wall Street forecasts with earnings of 58 cents a share on revenue of $3.9 billion. However, the company’s adjusted EBITDA came in at negative $509 million, wider than expected.

The company had been expected to report a loss of 52 cents a share, on sales of $3.8 billion, based on a FactSet survey of 29 analysts.

In the same period a year ago the company posted a loss of $1.02 a share on sales of $2.2 billion.

“In Q2 we invested in recovery by investing in drivers and we made strong progress, with monthly active drivers and couriers in the US increasing by nearly 420,000 from February to July,” said Dara Khosrowshahi, CEO.

“Our platform is getting stronger each quarter, with consumers who engage with both Mobility and Delivery now generating nearly half of our total company Gross Bookings.”

Uber holds approximately 144 million ordinary shares of Didi, acquired when it sold its China operations to Didi and exited the market several years ago. It said the carrying value of its shares as of the June 30 IPO was $7.3 billion, up from $5.9 billion at the end of the first quarter.

Source: The Street

https://www.thestreet.com/investing/ear ... %2BResults

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Uber Profit Hit in Effort to Attract Drivers

Uber Technologies beat sales expectations during its June quarter but profit in its ride-sharing business dipped from efforts to attract drivers.

Uber reported revenue of $3.93 billion, up 105% from a year ago, slightly ahead of expectations.

Delivery revenues were $1.96 billion while sales in the ride-sharing segment were $1.62 billion.

Freight revenue rose 65% to $348 billion.

Adjusted Ebitda—or earnings before interest, taxes, depreciation, and amortization—was a loss of $509 million, which compares to a loss of $837 million in the year-ago quarter.

The company said its “take rate,” the portion it keeps from each transaction, increased to 15.2% from 12.7% a year ago in delivery, but fell to 18.7% from 25.8% in ride sharing.

The company pointed to “elevated investments in reviving driver availability, particularly in the U.S.” Uber’s ride-sharing rival Lyft also cited costs related to driver incentives, as companies struggle to attract workers.

What’s Next: Uber said airport trips in its ride-share business were up 67% from the March quarter and 617% higher than a year ago, as some travel resumed after last year’s pandemic shutdowns.

Source: Barron's