Uber lost in revenue, but gained massively in stock price

By: Miguel A. Rodriguez

09:45, 14 September 2020

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.

See the difference when trading with CAPEX.com by accessing elite features:  

  • Stellar custom service 
  • Powerful WebTrader platform and mobile app 
  • High-end integrated trading tools  
  • Full license and regulation from top regulators

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


Share this article

This information prepared by capex.com/za is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation, or the particular needs of any recipient.You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation, or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.This information may not be published, circulated, reproduced, or distributed in whole or in part to any other person without the Company’s prior written consent.
Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of capex.com/zaJME Financial Services (Pty) Ltd trading as CAPEX.COM/ZA acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via CAPEX.COM/ZA, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15.  Magnasale Trading Ltd is the principal to the CFD purchased by investors.