Uber Stock Fell Despite a Forecast From Wedbush That the Company’s September Results “Should Be a Positive Step Forward”

Uber Stock

Uber Stock (NYSE:UBER)

Wedbush analysts have said that they anticipate Uber (NYSE:UBER) to report “generally strong results” ahead of the company’s FY3Q22 earnings, which will be released on Tuesday, November 1, before the opening bell.

According to the research firm’s analysts, who have given Uber stock an Outperform rating and set a price target of $38, Uber’s September Results should be a step in the right direction. Wedbush anticipates that Uber will outperform Wall Street expectations and produce “solid guidance” despite recent regulatory hurdles that have added further uncertainty. They referred to issues such as the United States Department of Labor’s announcement of a long-awaited plan that would increase the likelihood that workers in the gig economy would be categorized as employees rather than independent contractors.

“We feel the DOL plan adds more confusion to the gig economy. We regard the prospects of complete reclassification to employee status for all U.S. rideshare workers as extremely low. While this situation is still fluid, we believe that the DOL proposal adds more ambiguity to the gig industry. Uber has already started rolling out unconditional upfront pricing, which enables drivers to know the precise pickup and drop-off location before accepting a trip request. This will be key in assisting Uber in avoiding having its drivers categorized as workers. However, this will increase fees and wait times due to an increase in the number of drivers rejecting trips, “as the experts had previously indicated.

“Even though foreign exchange headwinds will remain, Wall Street anticipates Uber’s total revenue to be $8.12 billion. We feel that Uber stock can achieve this figure as it continues to expand into new international markets. Because the firm has significantly focused on increasing margins in conjunction with its ambitious development strategy, we feel that the Street’s EPS estimate for September, which is $0.18, is rather cautious.”

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