Uber Stock Rallies Ahead Of Q4 Earnings Report: Retail Chatter Reflects Optimism
Synopsis
Uber is expected to report earnings per share (EPS) of $0.48 on revenue of $11.78 billion during the fourth quarter.
Shares of ride-hailing firm Uber Technologies Inc (UBER) rose over 3% on Tuesday ahead of its fourth-quarter earnings report, which is scheduled to be released before the bell on Wednesday.
According to FinChat data, Uber is expected to report earnings per share (EPS) of $0.48 on revenue of $11.78 billion during the fourth quarter (Q4). This compares with an EPS of $0.66 and revenue of $9.94 billion in the same quarter a year ago.
Investors will also watch out for whether the firm can meet its outlook provided during the third quarter earnings.
In October, Uber said it expects a 16% to 20% year-over-year (YoY) growth in gross bookings of $42.75 billion to $44.25 billion on a constant currency basis.
The firm expects adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of $1.78 billion to $1.88 billion, representing 39% to 47% YoY growth.
Meanwhile, a Stocktwits poll shows that 72% of the respondents believe Uber stock will gain 30% or more in 2025. Eighteen percent of the respondents believe the stock will rise, but the gains will be capped below 30%. Only 6% of the poll participants believe the stock will remain flat, while 4% expect losses.
Recently, Bank of America analyst Justin Post lowered the firm's price target on Uber to $93 from $96 while keeping a ‘Buy’ rating on the shares. According to The Fly, the analyst believes Uber’s current valuation "seems to reflect a big autonomous vehicle (AV) overhang.”
Meanwhile, Piper Sandler lowered the firm's price target on Uber to $82 from $98 while keeping an ‘Overweight’ rating on the shares.
On Stocktwits, retail sentiment continued to trade in the ‘extremely bullish’ territory (81/100), albeit with a lower score. The move was accompanied by high retail chatter.
Retail user comments on Stocktwits are primarily reflecting optimistic takes on the stock.
Uber shares have gained nearly 10% year-to-date but have risen just 0.65% over the past year.
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