Uber's Stock Surge: Navigating All-Time-Highs Ahead Of Q4 Earnings

Uber Technologies Inc UBER will report its fourth-quarter earnings on Feb. 7. Wall Street expects 15 cents in EPS and $9 billion in revenues as the company reports before market hours.

The company's stock is up over 105%% over the past year, about 13% in 2024 so far. The stock is currently making new all-time highs as it crossed $70 a share on Feb. 6. Investor optimism ahead of the company’s fourth quarter earnings report appears to be fueling the stock.

Here’s what analysts will be focusing on, and how the stock currently maps against Wall Street estimates.

Uber Investment Thesis 

Uber Technologies emerged as a standout player in both the mobility and delivery sectors, exhibiting substantial growth in its mobility business with impressive booking and adjusted EBITDA expansion in recent years.

The company’s delivery business has become a significant contributor, constituting over 34% of total revenue and achieving positive adjusted EBITDA profits in FY22.

Uber’s financial performance is characterized by strong revenue growth, improved cash flow, and a resilient balance sheet. This signals a trajectory of sustained growth and margin expansion for the company.

Uber’s strategic emphasis on operational efficiencies and expense management has yielded positive outcomes, enhancing the take rate and operating margin.

A significant development is Uber’s clarification on the Department of Labor’s reclassification of workers, assuring investors that it will not have a material impact on the existing regulatory framework. Uber’s insight into driver sentiment, indicating dissatisfaction with the loss of independence and flexibility, underscores its commitment to maintaining a favorable relationship with its workforce. The management’s adept execution in navigating labor laws reinforces confidence that the impact of new regulations will be minimal on Uber’s financials.

Furthermore, Uber’s continued dominance in both mobility and delivery segments positions it for potential share price gains in 2024. The company’s proactive stance on cross-selling opportunities, surpassing competitors like Lyft Inc LYFT adds to its strength in the market.

With regulatory uncertainties easing, Uber is poised to accelerate growth in both the delivery and mobility sectors. The overall risk-reward profile for Uber appears increasingly favorable, making it an attractive investment opportunity as the company continues to strengthen its market position and capitalize on the evolving landscape of transportation and delivery services.

Also Read: Uber’s Upward Trajectory, Improved Margins and Ad Revenue To Continue – BofA Analyst Raises Forecast

Uber Analysts’ Focus & Consensus Ratings

Q4 Analysts’ Focus: Analysts will closely examine Uber’s earnings, focusing on key metrics like gross bookings, profitability trends, and the performance of its mobility and delivery segments.

Insights into future expectations, including growth targets, regulatory strategies, and the impact of economic conditions, will be crucial. Additionally, attention will be on user dynamics and technological innovations.

Ratings & Consensus Estimates: Consensus analyst ratings on Uber stock stand at a Buy currently with a price target of $60.75. Recent ratings received in January 2024 have pegged the stock's target price between $68 and $79 a share so far.

UBER Price Action: Uber stock was trading up by 2.03% at $70.39 at the time of publication Tuesday.

Read Next: Uber, Lyft Can Hitch A Ride Higher If Q4 Earnings Beat Wall Street Estimates

Photo: Courtesy Uber