On Wednesday, Uber Technologies (UBER) disclosed its initial-quarter financial results, which included a net loss that was not anticipated and revenue that marginally surpassed projections. However, Uber stock declined after the food-delivery and ride-hailing colossus disclosed a total number of reservations that fell short of expectations.
Uber Q1 Earnings Outlook
Uber disclosed its quarterly results, which indicated revenue of $10.13 billion for March and a loss of 32 cents per share. Analysts had projected revenues of $10.1 billion and earnings of 22 cents per share.
In the corresponding period of the previous year, Uber disclosed a loss of 8 cents per share on earnings, amounting to $8.8 billion.
Uber clarified in a press release the $721 million setback it ascribed to "net unrealized losses associated with the revaluation of Uber's equity investments," which comprised the company's net loss of $654 million. Despite this, the organization generated a profit of $172 million from its business activities.
Nevertheless, Uber's aggregate bookings for the quarter were insufficient, amounting to $37.7 billion, marginally lower than the anticipated $37.9 billion. In addition to food deliveries and fares, gross reservations include other services.
Uber has estimated its bookings for the current quarter to amount to $39.5 billion, corresponding to the midpoint of its forecast range. As per FactSet, analysts had projected gross bookings amounting to $40 billion for the June quarter.
Analysts Projection On Uber Stock
Some analysts downplayed the net loss after the earnings report and attributed it to investment markdowns. Ralph Schackart, an analyst at William Blair, remarked that Uber surpassed consensus estimates and achieved a quarterly record of $1.4 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA), an 82% increase.
149 million monthly active platform users joined Uber during the March quarter, representing individuals who utilized the service for food delivery or transportation. This represents a 15% year-over-year increase.
Food delivery bookings increased by 18% to $17.7 billion, while total bookings for Uber's transportation segment increased by 25% annually to $18.7 billion. To further broaden its delivery portfolio, Uber also declared a collaboration with Instacart (CART) to facilitate UberEats delivery through the Instacart application.
Uber Stock Forecast: Technical Analysis
In the daily chart of UBER stock price, the long-term market trend is bullish, where the current price hovers below the dynamic 20-day EMA line.
The volume structure looks positive to bulls, as the current high volume level since November 2023 is at 62.00, which is below the current price. Therefore, as long as the current price trades above the high volume level, the primary outlook for this stock could be bullish. However, the dynamic 20-day EMA is still above the current price, working as minor resistance.
Based on the ongoing market momentum, a bullish continuation with a daily candle above the 73.81 level could be a high probable long signal, targeting the 95.00 level. However, an immediate downside pressure with a daily close below the 60.00 psychological line could lower the price in the coming days.
