Uber Is Stuck in a Catch-22
Uber Technologies (NYSE: UBER) ended last week with a whimper.
The ridesharing leader closed Friday at $27.01 -- 40% below its $45 May IPO price -- after its third-quarter earnings report showed the company continues to bleed cash profusely. The stock hit an all-time low of $25.58 on Wednesday after its post-IPO lockup period expired and insiders were allowed to sell their shares for the first time.
Despite the sell-off, there was some good news in the report. The company broke out its adjusted EBITDA by business segment, and showed a surprising profit from its Rides segment, the company's biggest business, excluding costs for corporate general and administrative expenses, and research and development. Adjusted EBITDA from Rides grew 52% in the quarter to $631 million. However, it delivered losses in every other segment.
Source Fool.com
