Can Uber Maintain Its Growth Momentum in Q3 Earnings?

As Uber Technologies Inc UBER prepares for its fiscal third-quarter earnings report scheduled for Thursday’s pre-market session, investors are eager to see if the company can sustain its growth after a strong second quarter.

What To Know: In the second quarter, Uber achieved a 16% year-over-year revenue increase, reaching $10.7 billion and beating analyst expectations of $10.57 billion. The company also reported a GAAP EPS of 47 cents, well above the anticipated 31 cents.

Here’s a breakdown of the second quarter performance:

• Mobility: $6.13 billion in revenue, up 25% year-over-year.
• Delivery: $3.29 billion, an 8% increase.
• Freight: Steady at $1.27 billion.

These segments contributed to a 19% rise in total Gross Bookings, reaching $39.95 billion, slightly above the expected $39.7 billion.

For the third quarter, Uber projects Gross Bookings between $40.25 billion and $41.75 billion, indicating potential growth. Adjusted EBITDA is expected to range from $1.58 billion to $1.68 billion, reflecting confidence in profitability.

Analysts forecast third quarter revenue of $10.93 billion and an EPS of 35 cents. Uber’s adjusted EBITDA margin improved to 3.9% of Gross Bookings in second quarter, up from 2.7% the previous year, suggesting continued efficiency, particularly in the Mobility segment.

Additionally, Uber’s workforce grew to 7.4 million active drivers and couriers, boosted by rising demand. CEO Dara Khosrowshahi emphasized that the growth supports the strategy of enhancing driver earnings, which hit a record $17.9 billion in the second quarter.

As the third quarter unfolds, investors will likely focus on Uber’s ability to maintain or improve margins amid economic challenges and increased competition in its Mobility and Delivery segments.

Read Also: US Economy Grows Less Than Expected In Q3, Yet Private Employment Soars By 233,000 In October

How To Buy UBER Stock

By now you're likely curious about how to participate in the market for Uber Technologies – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, UBER has a 52-week high of $87.00 and a 52-week low of $42.20.