Uber Technologies Stock is it time to buy the stock or wait for the new 52 lows?
Uber Technologies Inc. has been in operation since 2009 when it was founded by Travis Kalanick (CEO) and Garrett Camp (CTO). The company offers various services such as transportation, food delivery, freight shipping, and electric bike rentals through its mobile app-based platform.
In the previous years or so there have been many controversies surrounding Uber Technologies Inc., including allegations of sexual harassment at work and reports that drivers are not being treated fairly or paid enough for their work; many of these issues are still unresolved. As of today’s date, Uber Technologies Market Capitalization is $56.84 Billion Dollars.
The business reported a record adjusted EBITDA of $516 million, beating guidance of $440 million to $470 million and also in advance of analyst price quotes of $457.7 million according to StreetAccount. Gross bookings for the quarter came in at $29.1 billion, up 26% year over year. For the 4th quarter of 2022, Uber stated it anticipates gross reservations to grow between 23% as well as 27% year over year on a continuous currency basis and an adjusted EBITDA of $600 million to $630 million. Experts evaluated by Refinitiv anticipated $568 million in modified EBITDA for the fourth quarter. Right here’s how Uber’s largest business segments executed in the quarter:
Mobility (gross reservations): $ 13.7 billion, short of experts’ estimates of $13.83 billion according to StreetAccount. Distribution (gross bookings): $ 13.7 billion, except experts’ price quotes of $14.01 billion according to StreetAccount
Complete Financials on Uber Technologies Inc
Regulatory and Inflation
The Biden administration launched a proposition that might lead the way for regulatory authorities as well as courts to reclassify job workers as staff members. The proposed regulation will more than likely raise prices for companies like Uber, Lyft, Instacart, and also DoorDash. Shares of Uber are down more than 36% so far this year. Even though the earnings and day-to-day operations look solid we will see if Uber can operate with high gas prices and also rising cost of living hitting the consumer. Will people continue to use Uber for trips and grocery runs? Or opt to walk if you live in a city, drive their own vehicles or take public transportation?
Future Outlook for the Stock
As of right now, I am not holding any stock on Uber. Even though I feel we can see some upside to the stock especially in the short term 1 to 3 months $35.00 per share. What I need to see is if the Worker regulations either don’t get imposed or if there is some wiggle room to work them into this Gig Economy without harming the Company and the independent worker. I like it closer to the 52-week low and then dollar cost averaging for the long term. What do you think?