Why Uber Shares Are Rising

Shares of Uber Technologies Inc. UBER are trading higher following a strong earnings report from the ride-share company.

Uber Technologies reported quarterly sales of $8.10 billion which beat the analyst consensus estimate of $7.39 billion.

In addition, the company became cash flow positive during the quarter. Free cash flow was reported at $382 Million which is up $708 Million year over year.

"We became a free cash flow generator in Q2, as we continued to scale our asset-light platform, and we will continue to build on that momentum… This marks a new phase for Uber, self-funding future growth with disciplined capital allocation, while maximizing long-term returns for shareholders” CFO Nelson Chai shared.

Uber also outlined its third-quarter outlook during the call. The company anticipates gross bookings in the range of $29.0 billion to $30.0 billion and an adjusted EBITDA in the range of $440 million to $470 million.

Price Action: Shares are up 12.2% as the price reaches $27.60 during today’s pre-market session, according to Benzinga Pro.

Photo: Courtesy of Viktor Avdeev on Unsplash