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Uber Stock Drops 5.06% on Disappointing Q4 Earnings and Guidance

Uber Technologies' stock is experiencing a decline after the company reported fourth-quarter earnings that fell short of expectations, despite a strong revenue performance. The ride-sharing giant announced a net income of $6.9 billion, or $3.21 per share, which was significantly bolstered by a $6.4 billion tax valuation release and a $556 million gain from revaluations of equity investments. However, the company's operating income of $770 million was well below the anticipated $1.21 billion, overshadowing the 20% year-over-year revenue growth to $11.96 billion. This shortfall in operating income has raised concerns among investors, leading to a drop in Uber's stock price.

The company's guidance for the first quarter also contributed to the negative sentiment. Uber expects gross bookings between $42 billion to $43.5 billion, which is below the $43.51 billion anticipated by analysts. Additionally, the projected adjusted EBITDA range of $1.79 billion to $1.89 billion fell short of the $1.85 billion expected by analysts. Despite the robust growth in gross bookings and trips, with 3.1 billion trips completed in the fourth quarter, the market's focus remains on the weaker-than-expected earnings and operating income.

Uber's stock is currently trading at $66.22, down 5.06% from its previous close of $69.75 on February 4th.