Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com - Benchmark has reiterated its Hold rating on Uber Inc. (NYSE:UBER), currently trading at $90.63, following the company’s recent earnings report that showed mixed performance across its business segments. According to InvestingPro data, the company maintains a "GREAT" overall financial health score of 3.33/5.
The research firm highlighted Uber’s impressive Monthly Active Platform Consumers (MAPC) growth as a key factor for investors to consider, questioning whether these new user cohorts will eventually mirror the behavior of legacy users. This growth contributes to Uber’s strong 18.15% year-over-year revenue growth, with total revenue reaching $47.33 billion in the last twelve months.
Benchmark noted that while Uber recorded a "modest miss" in its mobility segment amid ongoing autonomous vehicle narratives around competitors like Tesla (NASDAQ:TSLA) and Waymo, the company delivered substantial outperformance in its delivery business despite competitive pressures.
The firm pointed to Uber’s aggressive share buyback announcement as a "vote of confidence" regarding cash flow, even as EBITDA growth of 35% failed to significantly impress investors for both current and upcoming quarters.
Benchmark indicated that future stock performance may hinge on MAPC development, suggesting that if additional platform users increase their usage similar to legacy cohorts, "the profile of the Company changes meaningfully in the out years, and thus, so too will the narrative." The company’s P/E ratio of 15.41 and robust return on assets of 25.9% reflect its current market position as a prominent player in the ground transportation industry.
In other recent news, Uber Inc. reported second-quarter results that surpassed Wall Street expectations, with notable performance in both gross bookings and EBITDA. The company’s delivery segment showed acceleration, while mobility growth slightly decelerated by 2 percentage points on a foreign-exchange-neutral basis. Following these results, several analyst firms have adjusted their price targets for Uber. Cantor Fitzgerald reiterated an Overweight rating with a $106 price target, emphasizing the company’s strong performance. TD Cowen raised its price target to $108, citing record user numbers and increased trip frequency. Truist Securities increased its target to $96, highlighting healthy demand across both the Mobility and Delivery segments. Bernstein maintained an Outperform rating with a $110 target, noting strong delivery results. Susquehanna also raised its price target to $105, pointing out that most key performance indicators exceeded expectations.
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