Uber: shares in downward spiral after mixed results
(CercleFinance.com) - The Uber stock fell on Tuesday after the US ride-hailing giant delivered mixed results for the third quarter.
The Nasdaq-listed Uber share is down 6.7% at 29 dollars in early morning trading. The stock briefly fell by more than 9% in very earlier trading.
The San Francisco-based company reported a net loss of 1.2 billion dollars for the quarter ended 30 September, on gross bookings that rose by 29% to 3.7 billion dollars, up 32% on a constant currency basis.
Analysts at Susquehanna said the quarter was "noisy and mixed," but pointed out that the company's profitability outlook is improving.
"Management (...) expects to achieve profitability for full year 2021, which is good to see," the broker wrote in a note.
"That said, the lack of visibility and uncertainty around trends in ridesharing and Eats outside the US continue to make us cautious around the near-term trends," Susquehanna added.
The broker - which maintains a "neutral" rating on the stock - has cut its target price from 42 dollars to 31 dollars.
Yet, the stock is still supported by several other brokers.
anaccord Genuity - which has a "buy" rating on the share, with a 55 dollar target price - is one of them.
"Our thesis remains that as a scaled technology platform with over 100 million (and growing) frequently-transacting customers, Uber will play a leading role in transforming the global transportation landscape and will leverage this position into other businesses over time," it said.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The Nasdaq-listed Uber share is down 6.7% at 29 dollars in early morning trading. The stock briefly fell by more than 9% in very earlier trading.
The San Francisco-based company reported a net loss of 1.2 billion dollars for the quarter ended 30 September, on gross bookings that rose by 29% to 3.7 billion dollars, up 32% on a constant currency basis.
Analysts at Susquehanna said the quarter was "noisy and mixed," but pointed out that the company's profitability outlook is improving.
"Management (...) expects to achieve profitability for full year 2021, which is good to see," the broker wrote in a note.
"That said, the lack of visibility and uncertainty around trends in ridesharing and Eats outside the US continue to make us cautious around the near-term trends," Susquehanna added.
The broker - which maintains a "neutral" rating on the stock - has cut its target price from 42 dollars to 31 dollars.
Yet, the stock is still supported by several other brokers.
anaccord Genuity - which has a "buy" rating on the share, with a 55 dollar target price - is one of them.
"Our thesis remains that as a scaled technology platform with over 100 million (and growing) frequently-transacting customers, Uber will play a leading role in transforming the global transportation landscape and will leverage this position into other businesses over time," it said.
Copyright (c) 2019 CercleFinance.com. All rights reserved.