Uber Stock: Relative Strength Hits New High

7 lis 2023

With its earnings report out of the way, Uber stock is breaking out from a double bottom base pattern with a 49.19 buy point.

On the stock market today, Uber shares are up 3.8% to 49.90 in recent action. Uber released earnings results Tuesday morning. Third-quarter earnings and fourth-quarter bookings guidance topped estimates. Revenue was short of expectations, however, which the company pinned on accounting changes.

The stock traded lower premarket but has since recovered to post significant gains. Overall, Uber shares have gained more than 90% this year.

Uber Stock: Q3 Earnings Beat, Revenue Light
Early Tuesday, Uber reported third-quarter earnings of 10 cents per share on sales of $9.29 billion for the third quarter ending Sept. 30. Analysts expected Uber to post earnings of 7 cents per share on sales of $9.54 billion, according to FactSet. Some other estimates had called for earnings of 12 cents per share.

In the same quarter last year, Uber lost 61 cents per share on $8.34 billion in revenue.

Total third-quarter bookings climbed 21% year over year to $35.3 billion, compared to expectations of $34.6 billion. Bookings for the Rides business climbed 31% year over year to $17.9 billion. Bookings for the Eats, or delivery, business climbed 18% to $16.1 billion.

Uber routed 2.4 billion trips during the quarter, up 25% from the same period last year.

The 10% revenue gain marked a sixth straight quarter of decelerating sales growth.

However, the company noted that some accounting changes contributed to the lower than expected sales number. Uber Chief Financial Officer Nelson Chai said in prepared remarks that the changes reduced revenue by $521 million for the quarter.

Second Straight Operating Profit, Strong Outlook
Uber reported a third-quarter operating income of $394 million, compared to a loss of $495 million last year. The second quarter was Uber's first ever with a profit from its ride-hailing and delivery operations.

Net income for the third quarter was $221 million, recognizing a $96 million headwind that is primarily from unrealized losses on Uber's equity investments.

For the current fourth quarter, Uber projects gross bookings between $36.5 billion and $37.5 billion. Analysts were estimating $36.52 billion. Analysts largely saw positives from the report.

Uber Stock: Relative Strength Hits New High
Uber stock's Relative Strength Rating score is at 96 out of a best-possible 99, indicating it is significantly outperforming the market.

Technical Analysis
Price Momentum
UBER is trading near the top of its 52-week range and above its 200-day simple moving average.

What does this mean?
Investors have been pushing the share price higher, and the stock still appears to have upward momentum. This is a positive sign for the stock's future value.