UBER - Uber Stock Rises Rapidly
Uber stock soared on Tuesday after it reported strong ridership and optimistic fourth-quarter forecasts.
CEO Dara Khosrowshahi stated that “as things are opening up, [bookings trends] are showing absolutely no signs of slowing down” during a conference call to discuss the results. The company allayed worries about increasing inflation and a potential recession impacting consumer spending by claiming that trips per rider continue to rise even among lower-income users.
Additionally, Uber reported that its driver base is back to pre-pandemic levels globally , indicating that the firm has overcome a driver shortage and will likely be able to satisfy demand. In comparison to a year earlier, drivers put in 16% more hours on average during the third quarter.
Uber anticipates adjusted profits before interest, taxes, depreciation, and amortization for the fourth quarter to be in the $600 million to $630 million range. FactSet’s analysts had predicted $567.7 million. In the third quarter, the company outperformed expectations and achieved a record adjusted Ebitda of $516 million.
Even still, Uber’s net loss for the third quarter was far more than predicted at 61 cents per share. Due to currency headwinds, gross bookings came in at $29.12 billion, somewhat less than the $29.55 billion that had been anticipated. In excess of the $8.1 billion analysts had predicted, revenue increased 72% to $8.3 billion.
On Tuesday, Uber stock ( NYSE: UBER) increased 16% to $30.80. This year thus far, it is down 27%.
A Labor Department plan that might force Uber and other firms like Lyft LYFT +4.58% (LYFT) and DoorDash DASH +3.84% (DASH) to categorize their drivers or delivery workers as employees rather than contractors is a big topic for the company right now. When the idea was made public on October 11, Uber’s shares plunged 10% as a result of investors’ perceptions that the change would result in higher employee costs....
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