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Wed, February 5, 2025

Why Uber Stock Is Falling After Earnings


Published on 2025-02-05 11:21:10 - Kiplinger
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  • Uber stock is lower Wednesday as the ride-hailing firm's soft first-quarter outlook offsets its strong fourth-quarter results. Here's what you need to know.

Uber Technologies Inc. experienced a significant drop in its stock price following the release of its first-quarter earnings report. Despite reporting a revenue increase of 29% year-over-year to $8.82 billion, which was above Wall Street expectations, the stock fell due to several concerns. Investors were particularly worried about Uber's forward-looking statements, which indicated a potential slowdown in growth for the upcoming quarter. The company forecasted a gross bookings growth of 20% to 24% for the second quarter, lower than the 26% growth in the first quarter. Additionally, Uber's adjusted EBITDA was slightly below expectations at $761 million, and the company highlighted ongoing challenges like a softening in demand for ride-sharing services and increased competition in the food delivery segment. These factors, combined with broader market concerns about the sustainability of Uber's profitability and its ability to manage costs effectively, contributed to the negative investor reaction.

Read the Full Kiplinger Article at:
[ https://www.kiplinger.com/investing/stocks/why-uber-stock-is-falling-after-earnings ]
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