Uber Shares Decline Despite Strong Future Outlook

Published 13 hours agoUBER

Uber Shares Decline Despite Strong Future Outlook

Uber Technologies Inc.'s first-quarter 2025 financial report revealed a 14% increase in gross bookings to $42.8 billion from last year, slightly below the $43 billion analysts anticipated. Revenue also rose by 14% to $11.53 billion, which was short of the projected $11.62 billion due to slower growth in its core ride-hailing segment. Despite optimistic forecasts for the upcoming quarter, these figures led to a decline in Uber's stock price.

Following the earnings announcement, Uber's shares fell by approximately 4% in pre-market trading, as reported by Financial Times. The company's guidance for the second quarter is more positive, with expectations of gross bookings ranging between $45.8 billion and $47.3 billion, potentially exceeding market expectations. Additionally, Uber forecasts adjusted earnings that could surpass analyst estimates. Challenges impacting these figures include a strong U.S. dollar and rising insurance costs, which have increased trip prices and could affect demand.

Addressing these challenges, CEO Dara Khosrowshahi emphasized the company's strategic focus on reducing prices and expanding partnerships in the autonomous vehicle sector. Uber has recently acquired an 85% stake in the Turkish delivery platform Trendyol Go for $700 million and partnered with 18 global autonomous vehicle developers such as Volkswagen and Waymo. The company is operating about 100 self-driving vehicles in Austin, underlining its commitment to leading the autonomous driving space.

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