Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Stock

Uber shares slide as slowing bookings growth spooks investors

admin by admin
October 31, 2024
in Stock
0
Uber shares slide as slowing bookings growth spooks investors
0
SHARES
13
VIEWS
Share on FacebookShare on Twitter

By Akash Sriram

(Reuters) -Uber Technologies signaled a further slowdown in its mainstay app-based taxi business as it forecast fourth-quarter gross bookings below Wall Street estimates, sending its shares down nearly 8%.

Bookings growth, a key measure of ridership for online taxi operators, slowed to a more than one-year low in the third quarter and fell short of analysts’ forecasts.

“If near-term growth investors want much more growth, like acceleration, and they didn’t get it, they’d be disappointed,” said Adam Ballantyne, senior analyst at Cambiar Investors, which holds Uber (NYSE:UBER) stock.

Shares of rival Lyft (NASDAQ:LYFT), which is set to report quarterly results next week, fell 2.4%.

Uber’s outlook underlined concerns about weakening demand in the ride-hailing industry in recent quarters as an uncertain economy and high inflation weigh on commuters.

“It’s likely that there’s been a bit of a shift towards cheaper modes of transport,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

Uber, the dominant player in the North American ride-sharing market, sees suburban areas in the U.S. and elsewhere as a next growth driver amid worries about market saturation.

“It’s a common misconception that almost everyone already uses Uber,” CEO Dara Khosrowshahi said in his prepared remarks.

He said the company plans to capture suburban markets through better pricing strategies for longer distances and by focusing on features that allow people to wait and reserve rides in these areas.

Gross bookings for Uber’s mobility business grew 26.4%, with user engagement hitting an all-time high. Overall revenue for the third quarter came in at $11.19 billion, beating the analysts’ average estimate of $10.98 billion.

Net income attributable to Uber stood at $2.61 billion in the third quarter, including a $1.7 billion pre-tax gain related to the company’s equity investments, while operating profit was a record $1.06 billion.

Adjusted earnings before interest, taxes, depreciation and amortization – a closely-watched profitability metric – came in at $1.69 billion, compared with expectations of $1.64 billion.

The company forecast fourth-quarter adjusted EBITDA between $1.78 billion and $1.88 billion versus expectation of $1.84 billion.

This post appeared first on investing.com

Previous Post

Micron falls as Samsung says it has made progress on HBM front

Next Post

A very busy fortnight

admin

admin

Next Post
A very busy fortnight

A very busy fortnight

Trending News

Dogecoin whale transactions drop 70%—what does it mean for DOGE price?

Dogecoin whale transactions drop 70%—what does it mean for DOGE price?

February 10, 2025
Esyasoft makes indicative proposal for Good Energy, shares surges

Esyasoft makes indicative proposal for Good Energy, shares surges

October 28, 2024
Romanian fiscal adjustment plans challenge timeline for interest rate cuts

Romanian fiscal adjustment plans challenge timeline for interest rate cuts

October 15, 2024
Subscribe to Insightful Word


    Recent News

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    August 28, 2025
    SentinelOne stock price forecast ahead of earnings: buy or sell?

    SentinelOne stock price forecast ahead of earnings: buy or sell?

    August 28, 2025
    Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    August 28, 2025
    Urban Outfitters stock slides 4% despite strong quarter on cautious outlook

    Urban Outfitters stock slides 4% despite strong quarter on cautious outlook

    August 28, 2025

    Recent News

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    August 28, 2025
    SentinelOne stock price forecast ahead of earnings: buy or sell?

    SentinelOne stock price forecast ahead of earnings: buy or sell?

    August 28, 2025

    Latest News

    • Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in
    • SentinelOne stock price forecast ahead of earnings: buy or sell?
    • Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.