Still, we don’t believe Uber benefits from customer switching costs. In our view, the ride-hailing industry lacks barriers to entry or exit for both customers and drivers, who can easily switch to Lyft or other competing platforms. Customers also have other transportation options like taxis and public transit. 31 brokerages have issued 12-month target prices for Uber Technologies’ shares. On average, they expect the company’s stock price to reach $60.42 in the next year. View analysts price targets for UBER or view top-rated stocks among Wall Street analysts.
Uber stock has performed much better than longtime ride-hailing rival Lyft. Sales jumped 33% for the division during the third quarter to $5.1 billion. Delivery revenue, which also includes grocery items, rose 6% year over year to $2.9 billion.
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Grab, JPMorgan Chase, and Uber Technologies. By expanding into other products and end markets, Uber has been able to separate itself from the competition.
Since then, UBER stock has increased by 7.3% and is now trading at $66.05. These 10 simple stocks can help investors build long-term wealth as artificial intelligence continues to grow into the future. Separately, Uber said it is rolling out significant adx trendindikator upgrades to the software powering its freight business. That includes a product called Insights AI, which the company said will draw on a trove of transportation data to help shippers answer questions and plan routes and other uses.
- Further, Uber stock holds an Accumulation/Distribution Rating of B+.
- Based on this, it’s not a surprise the business is now in the digital advertising space.
- Combined with the user-generated driver ratings, we think such information helps Uber improve the timeliness of matching riders with drivers.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model’s predictive power is significant for positive ESP readings only.
For example, the company has equity stakes in electric scooter company Lime, as well as Grab, a competing service to Uber in Southeast Asia. After focusing initially on building a ride-hailing business, Uber expanded into food delivery which provided a lifeline for the company during the early months of the pandemic. Uber’s delivery sales topped those from the flagship ride-sharing business for the first time https://traderoom.info/ in the second quarter of 2020. When he became CEO, replacing Lyft founder Logan Green, Risher was charged with solving the company’s eroding market share, low employee morale, and a sense that Lyft was unable to counter Uber’s supremacy. These problems not only spurred investor discontent but led to the C-suite departure of the company’s two cofounders, Green and John Zimmer, though they remain on the board.
Uber
In his first year, Risher cut 30% of Lyft’s workforce, introduced new features like one that matches women passengers and women drivers, and made returning to the office mandatory. Revenue was up 11% year over year to $9.3 billion, and gross bookings in both the mobility and delivery segments increased by more than 18%. These figures indicate that Uber is posting healthy growth, and it has achieved two straight quarters of positive operating income. Shares of Uber Technologies (UBER 1.03%) were moving higher today after the ridesharing giant posted strong growth and a significant improvement in profitability in its first-quarter earnings report.
Uber Eats Vs. Rides: Which Is Growing Faster?
Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. Over the last four quarters, the company has beaten consensus EPS estimates three times. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer.
Uber Technologies MarketRank™ Stock Analysis
The consensus EPS estimate for the quarter has been revised 1.86% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. This ride-hailing company is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of -48.3%. Analysts expect Lyft to post adjusted earnings of 15 cents per share on sales of $1.2 billion. Uber’s revenue rose 14% in the second quarter, the fifth quarter in a row of decelerating sales growth.
It signed a number of partnerships with developers of the technology, including Alphabet’s Waymo, which already offers autonomous rides through Uber in Phoenix, Arizona. Uber paid its human drivers $16 billion last quarter, so self-driving cars could eliminate that cost and transform the company’s economics. Uber’s management team has worked hard to swing the company into profitability while maintaining strong growth in its ride-hailing and food-delivery businesses. Below, I’ll explain why its stock is a buy now and what joining the S&P 500 could mean for investors.
Estimate revisions ahead of a company’s earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model — the Zacks Earnings ESP (Expected Surprise Prediction) — has this insight at its core. The earnings report, which is expected to be released on February 7, 2024, might help the stock move higher if these key numbers are better than expectations. Financial giants have made a conspicuous bearish move on Uber Technologies. Our analysis of options history for Uber Technologies UBER revealed 34 unusual trades. Under new Chief Executive David Risher, Lyft has cut costs and lowered fares in a bid to catch up to Uber.
The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. 5 market experts have recently issued ratings for this stock, with a consensus target price of $72.8. Wall Street will likely focus on Uber’s international operations.
Uber continues to expand its services and develop new offerings, such as Uber Works, Uber Green and Uber Eats. The company has recently announced plans to become an emission-free platform and is investing in self-driving cars. Further, Uber posted its first-ever operating profit in the June-ending second quarter, totaling $326 million.
There are green shoots to bolster Risher’s case that Lyft is turning things around. Bookings on the Lyft app rose 15% last quarter, lifting revenue by 10% to $1.16 billion and dramatically shrinking its net loss, which fell from $422 million to $12 million. Although Risher won’t say when he thinks Lyft will be profitable, he maintains that Lyft won’t chase Uber down every rabbit hole.