Economy

Uber Retreats on Loss of $5.24 Bln U.S., Misses Analysts Forecasts

Uber Retreats on Loss of $5.24 Bln U.S., Misses Analysts Forecasts”

Mainly due to stock-based compensation, the company suffered sizable net losses of more than $5 billion. This further puts Khosrowshahi's comments on the scale as he said, Masayoshi Son's and Uber's interests are aligned. Excluding that one-time expense, it lost $1.3 billion, or almost twice the $878 million loss of a year earlier.

Uber's revenue growth slowed in the second quarter and its losses widened as it continued to spend heavily on discounting and new businesses.

"There's the meme [going] around, which is, can Uber ever be profitable?"

A number of equities analysts have issued reports on the stock. "I've certainly heard that meme, along with others".

Gross bookings is mainly derived from Uber's ride hailing platform service, which generated United States dollars 12.19 in gross bookings during the quarter.

"While we will continue to invest aggressively in growth, we also want it to be healthy growth and this quarter we made good progress in that direction", Uber Chief Financial Officer Nelson Chai said.

Uber's core ride-hailing business was all but flat. This was one of the reasons contributing to the company's $5.2 billion net loss for the April to June quarter, analysts noted, adding that Uber had taken a similar hit the previous quarter too when it had posted a United States dollars 1 billion net loss. During the same quarter in the prior year, the business posted ($2.01) EPS.

ET reported earlier that Uber had halved its annual cash allocation to its food-delivery business in India to $90-120 million.

Uber said Wednesday it paid $3.9 billion in stock-based reimbursement as well as its expenses during the quarter. Wedbush reiterated a "buy" rating and issued a $58.00 target price on shares of Uber Technologies in a research note on Friday. It raised unprecedented sums of private capital, bulldozed ahead of ride-hailing rivals, and expanded into markets all over the world at a fast clip.

Rideshare company Uber's stock plummeted 12% Thursday after the company delivered disappointing second-quarter results, before recovering some and settling around 4%.

The biggest negative is Uber has a lower return on invested capital from its worldwide strategy than rival Lyft does from its domestic push. They are concerned about its history of bleeding money, and its recent slowing growth in the face of stiff competition from a resurgent Lyft in the USA and competitors overseas.

Both Uber and Lyft remain below their respective IPO prices.

In a document posted on LinkedIn last week as "Ex-Uber Marketers", almost 20 Indians employed with the cab aggregator lost their jobs in the recent round of layoff at the company.



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