We expect revenue to grow faster than portions of Uber’s cost of revenue, including hosting, transaction processing, and insurance costs, which will result in gross margin expansion. For the first quarter of 2023, Uber grew its revenue by 29% year over year to $8.8 billion. Additionally, the company’s net loss of $157 million, or $0.08 per share, illustrated that Uber is very close to breakeven and potentially turning profitable. Uber’s total revenue of $9.29 billion missed analyst estimates in the third quarter.

Since Uber has 142 million monthly active customers on its platforms, it will be the go-to network for developers of autonomous vehicles who want to access the largest possible audience. Index Committee, which reviews the S&P 500 and its components periodically. It takes a few other things into account, including sector weighting — the S&P 500 is a diversified index, so the committee wouldn’t nominate 400 stocks from the technology sector alone, for example. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. The development of autonomous vehicles, and especially Google’s Waymo, could eliminate the need for all existing ride-share platforms, driving Uber and Lyft out of business.

1. In April 2019 Uber officially filed papers to go public on the New York Stock Exchange under the ticker symbol UBER.
2. In the same quarter last year, Uber lost 61 cents per share on $8.34 billion in revenue.
3. That’s up slightly from the start of the year, when 41 out of 46 analysts had a buy rating.
4. For example, Uber may be forced to conduct more thorough background checks on all driver applicants, such as adding costlier fingerprinting to the driver application process everywhere in the United States.
5. Lyft still loses a lot of money, but Uber is now, at long last, profitable.
6. Uber Technologies saw a drop in short interest during the month of January.

Lyft still loses a lot of money, but Uber is now, at long last, profitable. For what it’s worth, investors may also want to consider that Uber topped The Motley Fool’s list of undervalued growth stocks in 2023. A prudent strategy is to dollar-cost average into the stock over the long term and keep an eye out for growth across all segments and geographies, expanding margins and its profitability profile. I’m only eight months into the job, but some of the things I’ve been really focused on include making sure we are well-priced compared to Uber and paying our drivers fairly.

UBER Overview

Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. The market expects Uber Technologies (UBER Quick QuoteUBER – Free Report) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2023. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Uber experienced broad-based growth, with monthly active customers up 13% to 130 million while trips in the quarter rose 24% to 2.12 billion.

See More Zacks Research for These Tickers

Consider how much time people spend on the Uber app, whether they’re trying to book transportation or looking for something to eat. However, investors should pay attention to other umarkets review factors too for betting on this stock or staying away from it ahead of its earnings release. An earnings beat or miss may not be the sole basis for a stock moving higher or lower.

Because more riders use its app, Uber’s platform becomes more valuable for drivers looking to make money since it gives them access to a bigger customer base. Meanwhile, a larger driver base means a better experience for riders, with better pricing and reduced wait times. The Uber Eats food delivery business provided a lifeline for the company during the early months of the pandemic.

Dotcom Deja Vu? 3 Data Points Suggest a More Bullish Horizon in 2024

The company owns an equity stake in at least five different start-ups, and their value plunged in 2022 amid the tech bear market. It dealt a $9.9 billion blow to Uber’s financial results in the first nine months of that year, which swung to a $493 million profit in 2023. Despite the controversies, Uber has committed to carbon neutrality globally by 2040, and by 2030, in most countries, rides will move exclusively to electric vehicles. The company has also formed various partnerships and acquisitions, such as with IT Taxi in Italy, Cornershop for grocery delivery and Postmates for alcohol delivery.

The company also expanded its Taxi segment in New York City, so any customer who books an UberX can have the ride fulfilled by a yellow cab. Uber disrupted the traditional taxi industry when it burst onto the scene, and now it stands to profit from what’s left. Our $68 fair value estimate represents an enterprise value of four times our 2023 revenue estimate.

Moody’s Daily Credit Risk Score

Bearing that in mind, long-term investors should zoom out and take a close look at Uber’s valuation ratios. As of the time of this article, Uber trades for 2.8 times price to sales (P/S). This budget-friendly alternative permitted drivers to use their cars provided they passed background checks and met insurance, registration and vehicle quality standards. UberX expanded to 35 cities within a few months, demonstrating its popularity among cost-conscious riders. In August 2014, Uber extended its services by introducing Uber Eats, a food delivery platform.

Delivery sales topped those from the flagship ride-sharing business for the first time in the second quarter of 2020. Uber share price history started in May 2019 when Uber finally went public. Investing in Uber stocks began at $45 per share and the initial market cap of $75.5 billion. By the end of the first day UBER stocks performance dropped to $41.57, bringing the IPO investors a cumulative loss of $655 million. Alternatively, they can trade Uber shares through a contract for difference (CFD) and speculate on the price difference of the underlying asset, without actually owning it.

In the third quarter, Uber counted 142 million monthly active users. Plus, the delivery service reported completing more than 2.4 billion trips, up 25% from the prior-year period. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it’s worth checking a company’s Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they’ve reported.

I’m here to tell you that for-profits should be managed more like nonprofits. Purely from a cost basis, nonprofits take on some of the world’s biggest problems, and they have some of https://traderoom.info/ the smallest budgets, so they’ve got to be ruthless about cost control and to raise money every year. Only 23% of our drivers are women, and they drive only about 15% of our hours.

This observation becomes even more relevant when you consider that Uber boasts 130 million monthly active platform consumers (MAPCs). Given that this figure is likely deflated due to hazy economic conditions, long-term investors should be encouraged as Uber still has mammoth potential. From a geographic standpoint, Uber’s Europe, Middle East, and Africa (EMEA) segment grew by 86% in Q1, higher than any other region. For this reason, Uber is likely not experiencing peak demand and business in this region, implying there is much more opportunity there. Uber Technologies’ stock was trading at $61.57 at the beginning of the year.