D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat
On Friday, Benchmark analyst Daniel L. Kurnos maintained a Hold rating on Uber Inc. (NYSE: UBER) shares, without changing the previously set price target. With a market capitalization of $142.6 billion and a "GREAT" financial health score according to InvestingPro, Uber appears slightly undervalued at current levels. Kurnos highlighted Uber’s upcoming earnings report, scheduled for release on Wednesday, February 5th before the market opens. He noted the stock’s recent recovery, with approximately a 10% rebound from its low following a period of difficulty since reaching record highs in October.
Kurnos mentioned the challenges faced by Uber, particularly in the mobility sector, citing recent developments such as Waymo’s city expansion and freeway testing in Los Angeles, along with Tesla (NASDAQ:TSLA)’s Full Self-Driving (FSD) launch in Austin. Despite the potential risks these events posed, the market’s reaction was described as relatively muted after an initial drop. This resilience might be attributed to Uber’s strong revenue growth of 16.7% and its achievement of profitability over the last twelve months, as revealed by InvestingPro’s detailed financial analysis.
In his analysis, Kurnos expressed a cautious stance on the mobility segment, indicating less optimism about its upside potential compared to the delivery segment. He pointed out that the delivery business could present a compelling valuation argument when considered against the total addressable market (TAM) and Uber’s current enterprise value. However, he also acknowledged that it might take time for investor focus to shift towards a more balanced view between Uber’s mobility and delivery services.
Kurnos’s comments come ahead of Uber’s earnings report, which is being watched closely by investors for indications of the company’s performance and strategic direction in both its mobility and delivery operations. The report will provide updated financial data and may offer insights into how Uber is navigating the competitive landscape and any shifts in market dynamics.
In other recent news, Uber Technologies Inc . (NYSE:UBER) has been a focal point of multiple developments. JMP Securities has maintained a Market Perform rating on Uber, citing the company’s strong revenue growth and financial health, but also noting the increasing competition from Waymo. TD Cowen, meanwhile, has held onto a Buy rating for Uber, with a $90 target, forecasting a significant rise in the company’s EBITDA.
Uber has also taken legal action against a group of law firms and medical clinics, alleging that they staged fake car accidents and conducted unnecessary surgeries to exploit New York’s no-fault insurance policies. This lawsuit represents a significant move by the company to protect its passengers and insurance system.
In the realm of autonomous vehicles, Uber is facing potential competition from Waymo’s expansion plans and Tesla’s upcoming robotaxi efforts. Waymo, owned by Alphabet (NASDAQ:GOOGL) Inc., plans to expand its testing operations to 10 new cities by 2025. Tesla CEO Elon Musk has expressed confidence in launching full-self-driving cars as a paid service in Austin, Texas, in June. These developments highlight the rapidly evolving landscape of the ride-hailing industry and the potential impact of autonomous driving technology on companies like Uber.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.