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Uber Stock Plunges as Q3 Bookings Disappoint

#Uber #Stock #Plunges #Bookings #Disappoint

Key takeaways

  • Shares of Uber Technologies fell on Thursday, as the ride-hailing giant reported weaker-than-expected gross bookings in the third quarter.
  • Total bookings rose 16% year over year to $41 billion in the third quarter, the company said, falling short of Visible Alpha’s estimate of $41.3 billion.
  • However, Uber’s top and bottom line results easily beat analysts’ estimates. It achieved revenues of $11.19 billion and net income of $2.6 billion for the third quarter.

Shares of Uber Technologies ( UBER ) fell nearly 10% on Thursday, as the ride-hailing giant reported weaker-than-expected total bookings in the third quarter.

Total bookings rose 16% year over year to $41 billion in the third quarter, the company said, falling short of Visible Alpha’s estimate of $41.3 billion. Trips grew 17% to 2.9 billion trips, in line with estimates.

However, Uber’s top and bottom line results easily beat analysts’ estimates. The company reported revenue for the period of $11.19 billion versus estimates of $10.98 billion. Net income of $2.6 billion also beat estimates by a large margin, although that included $1.7 billion before taxes from gains on Uber’s revaluation of its stock investments.

Uber’s CEO says the company is continuing to “evolve” its autonomous vehicle strategy

“We achieved another record quarter of earnings growth on a global scale, reflecting the strength of our platform, which now includes more than 25 million Uber One members,” Uber CEO Dara Khosrowshahi said, adding that the company is continuing to do so. “To strengthen our independent strategy.”

Uber has announced a number of partnerships with autonomous vehicle (AV) companies like Waymo over the past few months.

Uber shares are up nearly 30% since the beginning of the year, though they are below record levels reached in the days following Tesla’s ( TSLA ) robotaxi event earlier this month. Uber is expected to suffer if Elon Musk’s company rolls out driverless robotaxis and disrupts the ride-hailing industry, but the event this month was light on details and did not confuse investors.


Updated – October. January 31, 2024: This article has been updated to include the latest stock quotes.

#Uber #Stock #Plunges #Bookings #Disappoint

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