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Uber Shares Continue Decline Despite Strong Earnings Beat

MarketDash Editorial Team
16 days ago
Uber stock has dropped over 12% in the past month despite beating earnings expectations and posting record quarterly trips. Analysts remain split on the ride-hailing giant's near-term outlook.

Uber Technologies, Inc. (UBER) shares are extending their decline Friday, down more than 12% over the past month despite posting earnings results that beat Wall Street expectations across the board.

The Earnings Beat That Didn't Matter

On November 4, Uber reported adjusted earnings per share of 81 cents, crushing the consensus estimate of 69 cents. Revenue came in at $13.46 billion, topping expectations of $13.27 billion. By any normal standard, these would be numbers worth celebrating.

The underlying metrics looked even better. Trips grew 22% year-over-year to 3.5 billion, which the company called one of the largest quarterly increases in its history. Gross bookings climbed 21% to $49.7 billion. Adjusted EBITDA hit $2.3 billion, up 33% from the prior year.

CEO Dara Khosrowshahi highlighted strong consumer engagement and ongoing investments in AI and autonomy as key drivers of the quarter. CFO Prashanth Mahendra-Rajah described the results as reflecting "accelerating growth and record profitability," noting that the company sees room to invest in new opportunities while continuing to return capital to shareholders.

Wall Street Recalibrates

Following the earnings report, analysts issued a mixed bag of price target adjustments that tells you everything about the current uncertainty:

  • DA Davidson analyst Tom White maintained a Buy rating and raised his price target from $102 to $108.
  • BMO Capital analyst Brian Pitz maintained an Outperform rating but lowered his target from $113 to $106.
  • Guggenheim analyst Taylor Manley maintained a Buy rating but cut his target from $140 to $135.
  • Wells Fargo analyst Ken Gawrelski maintained an Overweight rating but reduced his target from $125 to $120.
  • Cantor Fitzgerald analyst Deepak Mathivanan maintained an Overweight rating and raised his target from $107 to $108.

Reading The Technical Tea Leaves

The stock is trading within its 52-week range of $59.33 to $101.99, reflecting the significant volatility that's characterized its performance over the past year. Despite the recent pullback, Uber remains up 29.8% year-to-date, indicating strong underlying demand and sustained investor interest.

From a technical perspective, the picture gets more interesting. Uber is currently trading approximately 13.7% below its 50-day moving average of $95.02 and about 5.6% below its 200-day moving average of $86.80. The Relative Strength Index stands at 27.04, which puts the stock firmly in oversold territory. That could signal a potential rebound if buying interest returns.

Resistance sits at $92.92, aligning closely with the 50-day moving average and creating a significant barrier for upward momentum. If the stock manages to break through that level, it could open the door for a more sustained recovery toward recent highs.

How Uber Stacks Up

Within the ride-sharing and delivery market, Uber remains one of the largest players with a market cap of $173.21 billion, significantly outpacing competitors like Lyft and DoorDash. This positioning underscores the company's substantial market presence and potential for growth, even amid current price fluctuations.

Given the current setup, traders should watch for a potential reversal as the stock approaches the 50-day moving average, which could act as a pivotal point for a bounce back. A sustained move above the resistance level of $92.92 could signal renewed bullish sentiment and a shift in momentum for Uber shares.

UBER Price Action: At the time of writing, Uber shares are trading 0.09% lower at $83.06.

Back to News

Uber Shares Continue Decline Despite Strong Earnings Beat

MarketDash Editorial Team
16 days ago
Uber stock has dropped over 12% in the past month despite beating earnings expectations and posting record quarterly trips. Analysts remain split on the ride-hailing giant's near-term outlook.

Uber Technologies, Inc. (UBER) shares are extending their decline Friday, down more than 12% over the past month despite posting earnings results that beat Wall Street expectations across the board.

The Earnings Beat That Didn't Matter

On November 4, Uber reported adjusted earnings per share of 81 cents, crushing the consensus estimate of 69 cents. Revenue came in at $13.46 billion, topping expectations of $13.27 billion. By any normal standard, these would be numbers worth celebrating.

The underlying metrics looked even better. Trips grew 22% year-over-year to 3.5 billion, which the company called one of the largest quarterly increases in its history. Gross bookings climbed 21% to $49.7 billion. Adjusted EBITDA hit $2.3 billion, up 33% from the prior year.

CEO Dara Khosrowshahi highlighted strong consumer engagement and ongoing investments in AI and autonomy as key drivers of the quarter. CFO Prashanth Mahendra-Rajah described the results as reflecting "accelerating growth and record profitability," noting that the company sees room to invest in new opportunities while continuing to return capital to shareholders.

Wall Street Recalibrates

Following the earnings report, analysts issued a mixed bag of price target adjustments that tells you everything about the current uncertainty:

  • DA Davidson analyst Tom White maintained a Buy rating and raised his price target from $102 to $108.
  • BMO Capital analyst Brian Pitz maintained an Outperform rating but lowered his target from $113 to $106.
  • Guggenheim analyst Taylor Manley maintained a Buy rating but cut his target from $140 to $135.
  • Wells Fargo analyst Ken Gawrelski maintained an Overweight rating but reduced his target from $125 to $120.
  • Cantor Fitzgerald analyst Deepak Mathivanan maintained an Overweight rating and raised his target from $107 to $108.

Reading The Technical Tea Leaves

The stock is trading within its 52-week range of $59.33 to $101.99, reflecting the significant volatility that's characterized its performance over the past year. Despite the recent pullback, Uber remains up 29.8% year-to-date, indicating strong underlying demand and sustained investor interest.

From a technical perspective, the picture gets more interesting. Uber is currently trading approximately 13.7% below its 50-day moving average of $95.02 and about 5.6% below its 200-day moving average of $86.80. The Relative Strength Index stands at 27.04, which puts the stock firmly in oversold territory. That could signal a potential rebound if buying interest returns.

Resistance sits at $92.92, aligning closely with the 50-day moving average and creating a significant barrier for upward momentum. If the stock manages to break through that level, it could open the door for a more sustained recovery toward recent highs.

How Uber Stacks Up

Within the ride-sharing and delivery market, Uber remains one of the largest players with a market cap of $173.21 billion, significantly outpacing competitors like Lyft and DoorDash. This positioning underscores the company's substantial market presence and potential for growth, even amid current price fluctuations.

Given the current setup, traders should watch for a potential reversal as the stock approaches the 50-day moving average, which could act as a pivotal point for a bounce back. A sustained move above the resistance level of $92.92 could signal renewed bullish sentiment and a shift in momentum for Uber shares.

UBER Price Action: At the time of writing, Uber shares are trading 0.09% lower at $83.06.