UBER - Wall Street Gives Uber (UBER Stock) A Five-Star Rating
These days, Wall Street is a difficult client, yet Uber just received a sizable tip UBER stock 10.80%increase; green up pointing triangle.
Due to macroeconomic headwinds, currency fluctuations, and—in the case of Meta Platforms—heavy investments made despite a slowing economy, a large portion of the tech sector has fallen so far this earnings season. However, Uber is defying the trend. Higher prices and lower expenses helped lift third-quarter revenue and adjusted earnings before interest, taxes, depreciation, and amortization past Wall Street’s projections, despite reports that trips per monthly active platform consumer were still below pre-pandemic levels.
In addition, the company’s fourth-quarter outlook was better than anticipated because of Uber, which provided earnings guidance far above consensus projections.
Uber’s focus has recently switched away from expansion and toward earnings and cash flow. An audacious objective for a corporation that had burned through $2 billion only a few years ago, the company stated in February that it anticipated turning free cash flow positive. Uber said on Tuesday that it has earned about $700 million in free cash flow so far this year, attributing this to its global scale and network effects after posting its first-ever quarter of positive free cash flow in the second quarter.
Following its third-quarter report, Uber shares increased 15% in early Tuesday trading.
Investors were already benefiting from the bottom line focus: Just 15% had been lost from Uber stock during the previous six months as of Monday’s market close. Competitor Lyft in the ride-sharing industry lost more than 50% of its market value during the same time frame, and DoorDash in the food delivery industry lost close to 50%. Due to the current high currency, both of those businesses have historically been more U.S.-focused, which should have benefited them. For instance, Uber reported a $380 million disadvantage from foreign exchange on its own gross bookings in the third quarter. It ...
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