Uber Technologies reported stronger-than-expected earnings and sales in its latest quarter, with the company citing “acceleration” as a key theme. Despite beating analyst expectations for earnings and sales, Uber’s stock fell due to currency headwinds that pushed its guidance for bookings growth below forecasts.
In a call with analysts on Wednesday, CEO Dara Khosrowshahi stated that gross bookings grew 21% to $44.2 billion, exceeding expectations of $43.48 billion. The company also added 5 million new subscribers to its Uber One membership program, bringing the total to 30 million members.
However, Uber’s adjusted EBITDA guidance for the first quarter fell short of expectations, and analysts attributed the stock’s decline to concerns about self-driving vehicles. Waymo’s expansion into new markets and Elon Musk’s vision of a Tesla robotaxi were cited as reasons for the market’s skepticism.
Despite this, Khosrowshahi expressed confidence in Uber’s ability to partner with AV developers and connect their cars with riders. The company has partnered with Waymo in several cities, including Phoenix and Atlanta, and is now offering a waitlist for Austin riders who want to take a robotaxi ride through Waymo.
Uber’s stock fell 7% at close on Wednesday, but technical analysts noted that the Relative Strength Rating had improved from lows near 20 earlier this year. The IBD Composite Rating remains at 86 out of 99, indicating strong growth potential for the company.
Source: https://www.investors.com/news/technology/uber-stock-q4-2024-earnings-results-uber-news-robotaxi