Uber Shares Rebound Today: What's Going On?

Zinger Key Points

The company reports $11.96 billion in revenue, exceeding forecasts, while adjusted EPS fell short.
Multiple analysts maintain Buy or Overweight ratings on Uber, though several lower their price targets.
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Uber Technologies Inc. UBER shares trading higher Thursday, bouncing back from an earnings sell-off on Wednesday. Multiple analysts maintained positive ratings following the print.

What To Know: The company reported fourth-quarter revenue of $11.96 billion, a 20% year-over-year increase, surpassing analyst expectations of $11.77 billion. However, adjusted earnings per share came in at 23 cents, falling short of the 50-cent consensus estimate, which contributed to the stock’s initial decline.

Mobility revenue grew 25% to $6.91 billion, while Delivery revenue rose 21% to $3.77 billion. Freight revenue remained flat at $1.28 billion. Gross Bookings climbed 18% year-over-year to $44.2 billion, with Mobility and Delivery each seeing 18% growth. The company completed 3.1 billion trips during the quarter, a daily average of 33 million. Monthly Active Platform Consumers increased 14% to 171 million.

Uber reported an adjusted EBITDA of $1.84 billion, up 44% from the previous year, with a margin of 7.8% on Gross Bookings, an improvement from 7.5%. The company ended the quarter with $7 billion in unrestricted cash and equivalents and generated $1.7 billion in free cash flow.

CEO Dara Khosrowshahi described the quarter as Uber's strongest yet, citing accelerated growth across key metrics and advancements in autonomous technology. CFO Prashanth Mahendra-Rajah noted strong demand in Mobility and Delivery pushed Gross Bookings beyond the high end of the company's guidance, allowing Uber to exceed its three-year outlook for Gross Bookings, Adjusted EBITDA and free cash flow.

For the first quarter of 2025, Uber forecasts Gross Bookings between $42 billion and $43.5 billion and expects adjusted EBITDA between $1.79 billion and $1.89 billion.

Following the earnings report, multiple analysts reaffirmed their positive stance on Uber:

Needham: Reiterates a Buy rating with a $90 price target.
Piper Sandler: Maintains an Overweight rating, lowers price target from $82 to $80.
Cantor Fitzgerald: Reiterates an Overweight rating, maintains $80 price target.
Citigroup: Maintains a Buy rating, lowers price target from $98 to $92.
Wells Fargo: Maintains an Overweight rating, lowers price target from $90 to $87.
Evercore ISI: Maintains an Outperform rating, lowers price target from $120 to $115.
JMP Securities: Reiterates a Market Perform rating.
DA Davidson: Maintains a Buy rating, lowers price target from $84 to $80.
RBC Capital: Reiterates an Outperform rating, maintains $82 price target.
JPMorgan: Maintains an Overweight rating, lowers price target from $95 to $90.