
Uber Technologies Inc. (NYSE: UBER) is scheduled to release its fourth-quarter financial results after the markets close on Thursday. The consensus estimates call for a net loss of $0.67 in EPS and $4.06 billion in revenue.
Uber’s last earnings report came with an acknowledgment that profits do ultimately matter, and Uber’s new target was to be profitable by the end of 2021, at least on an EBITDA basis.
While Uber is in the midst of losing money on every single transaction it embarks on in an effort to capture more market share, one independent research firm is calling a bottom in the stock. Argus, which relies on no commissions and no underwriting to support its research reports, has raised Uber to Buy from Hold.
As far as this latest upgrade from Argus, Uber is viewed as having an improving competitive landscape in its core rides/Eats markets. The firm notes that Uber currently holds roughly 33% market share of the global ride-hailing industry, giving it efficiencies as the established leader and also leaving room for further growth.
Argus also pointed out that in the busted-IPO climate of unicorns in 2019 (Uber, Lyft, Slack, Beyond Meat and Pinterest), they have fallen. The firm sees this pullback reflecting a shift in sentiment that has seen growth stocks fall out of favor, but Argus views the Uber selloff as a buying opportunity because its own fundamentals remained intact despite a slide in its share price.
Overall, Uber stock has outperformed the broad markets with a gain of about 24% year to date. In the past quarter alone, the stock is up about 18%.
Here’s what analysts were saying ahead of the report:
- Morgan Stanley has an Overweight rating and a $57 price target.
- Wedbush has an Outperform rating with a $50 price target.
- JPMorgan rates it as Overweight with a $51 price target.
- UBS has a Buy rating with a $56 target price.
- Guggenheim has a Buy rating and a $45 price target.
- The Barclays Buy rating comes with a $44 price target.
Uber stock traded at $37.14 on Thursday, in a post-IPO range of $25.58 to $47.08. The consensus price target is $45.08.
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.