Uber lost in revenue, but gained massively in stock price

Uber lost in revenue, but gained massively in stock price

Uber released the Q1 report showing that it fell short on revenue and missed the earnings estimates.

The biggest ride-hailing provider in the world reported an adjusted loss of $1.70 per share and revenue of $3.5 billion. It is much more than 84 cents expected by Wall Street. The overall net loss was of $2.9 billion. Uber Eats is responsible for 16% adjusted net revenue. In April, the number of rides dropped by 80%, but during the past week, it managed to rebound by 8% as lockdown easing measures began to take shape.

The number of active customers increased by 11% compared to the same period last year.

Like its rival, Lyft, Uber had to lower its workforce by 14%, which is around 3,700 jobs – customer support and recruiting division mostly.

Uber CEO, Dara Khosrowshahi, thinks that business will suffer for only a few more months before getting back on its feet.

Even though the pandemic cut deep in ride-hailing demand, Uber follows its forecasts and plans to expand in Latin America. It wants to purchase Cornershop – a grocery delivery platform, since October 2019. Also, new services are in sight, such as Uber Connect and Uber Direct, focused on retailers.

The stock price gained 11% during regular trading hours on Thursday and pushed the market capitalization over $53 billion. The rally continued in after-hours, the stock gaining another 6.1%.

Uber is, all in all, on a rising slope this year; meanwhile USA500 lost 11.8% in the last 4 months.

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Sources: thestreet.com, marketwatch.com, edition.cnn.com


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