By
Steve Muchoki
February 9th, 2024
In an SEC filing, Uber expects to report $22.8 billion to $23.2 billion in gross bookings for the current quarter, adjusted from the $22 billion to $24 billion it predicted on its second-quarter earnings call.
Uber Technologies Inc (NYSE: UBER) stock closed yesterday trading at $44.36, up 11.49% from the day’s opening price. The gains continued during today’s premarket trading session, as Uber stock trading around $44.43. The spike has directly been attributed to the company’s update that it expects better than anticipated results for the third and fourth quarters.
In an SEC filing, Uber expects to report $22.8 billion to $23.2 billion in gross bookings for the current quarter, adjusted from the $22 billion to $24 billion it predicted on its second-quarter earnings call.
Despite the ride-hailing industry is one of the hardest-hit sectors by the Covid pandemic, Uber has managed to find its silver lining. Moreover, the company has significantly diversified its business to shield itself from future unpredictable market conditions. Among the notable niches that have thrived during the pandemic is the food delivery unit, Uber Eats that have outpaced most of its competitors.
“They say that crisis breeds opportunity and that’s certainly been true of Uber during the last 18 months,” CEO Dara Khosrowshahi said in the filing.
Notably, the company also noted that it expects its EBITDA to range from a loss of$25 million to a profit of $25 million. Previously, the company had said that it expected its adjusted EBITDA for the third quarter to be better than a loss of $100 million.
Worth notice, Uber’s shareholders now can expect the company to report a profit in the fourth quarter. Moreover, there are high hopes that the pandemic will significantly be under control in a few months.
Uber Stock and Ride-Hailing Business
Uber stock has now gained approximately 32%, and 6% in the past year and one month respectively. However, the company’s stock has dropped approximately 13%, and 12% in the past 9 months and three months respectively through Tuesday. As a technology-based company, Wall Street analysts have high expectations of the company’s future growth prospects.
According to a survey conducted by MarketWatch, 43 ratings have given Uber stock an average of reporting a Buy rating. An indication of the upward growth prospects in the foreseeable future.
The company is however facing competition in a market that has not yet fully recovered from the ongoing coronavirus crisis. Among the notable competitors include Lyft that has made tremendous gains in the past year too.
Uber has a reported market valuation of approximately $74.98 billion.