Is Uber Technologies Stock a Buy Now?
Share prices of Uber Technologies (NYSE: UBER) surged 19% on Aug. 2 after the ride-hailing and delivery service posted second-quarter results. Its revenue soared 105% year over year to $8.1 billion, beating analysts' expectations by $700 million. Its gross bookings -- a measure of the total dollar value of its ridesharing, delivery, and freight services that excludes tips, discounts, and refunds -- rose 33% to $29.1 billion.
But Uber still posted a net loss of $2.6 billion, compared to a net profit of $1.1 billion a year earlier, mainly due to a $1.7 billion headwind from its equity investments. As a result, its net loss of $1.33 per share broadly missed analysts' expectations by $1.06. But on the basis of adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), which excludes those hefty equity losses, it posted a net profit of $364 million, compared to a net loss of $509 million in the prior-year quarter.
Image source: Uber.
Source Fool.com
