Uber Stock (NYSE:UBER)
Following the release of the ride-hailing industry leader’s fourth-quarter earnings on Monday, which included revenue that was higher than anticipated and a tremendous increase in bookings, Uber stock clung to minor gains on Tuesday.
Uber Technologies (NYSE:UBER) said before the opening of the stock exchanges in the United States that it had made a profit of 29 cents per share in the fourth quarter on sales of $8.6 billion. The sum of all bookings for the period that ended on December 31 totaled $30.7 billion, representing a 19% rise over the previous year’s totals.
The decline in the COVID-19 epidemic was reflected in the company’s results, which indicated an increase in the number of riders using Uber (NYSE:UBER). Uber’s mobility revenue reached $4.14 billion, a rise of 82% compared to the fourth quarter of 2021. It exceeded its $2.93 billion in delivery revenue to retake the position as Uber’s (UBER) leading source of revenue.
Dara Khosrowshahi, the Chief Executive Officer of Uber (NYSE:UBER), issued a statement in which he referred to the last three months of 2021 as “our greatest quarter ever.”
The business did not provide an earnings-per-share or sales projection for the first quarter of this year. Still, it stated that it anticipates bookings to climb between 20% and 24% compared to the same period in the previous year. Based on this projection, bookings might fall between $31 and $32 billion.
The results of Uber (NYSE:UBER) revealed, according to Eric Sheridan, an analyst at Morgan Stanley, that the business is continuing on a “trend line of delivering on the forecast and increased profitability.” Sheridan, who has a buy rating on Uber’s (NYSE:UBER) stock and has set a price objective of $45 a share for the firm, said that investors are likely to retain their focus on the company’s “current and ahead predictions for end dynamics across both the mobility and delivery sectors.”
After what the analyst at Wedbush called a “transitional year of growth and cost reducing,” the data demonstrated that “we are seeing a leaner Uber finally reaching the inflection of growth,” he added. “We are seeing a leaner Uber finally hitting the inflection of growth.” Ives believes that Uber stock will outperform the market and has set a target price of $38.
Featured Image: Freepik