Why Shares of Uber Technologies Are Down Today
Shares of ridesharing giant Uber Technologies (NYSE: UBER) opened sharply lower on Friday, after the company reported sales that fell short of Wall Street estimates and posted its largest-ever quarterly loss.
Uber's share price fell nearly 10% in early trading, but it recovered somewhat as the session went on. As of 11 a.m. EDT today, shares were trading about 7% below Thursday's closing price.
Second-quarter results showed growth, but not as much as Wall Street had expected. Adjusted net revenue of $2.87 billion was up 12% from the year-ago quarter, but it fell short of the Wall Street average estimate of $3.05 billion as reported by Bloomberg. The problem: While Uber's business is growing more rapidly than those numbers suggest, the incentives that it needs to pay to retain drivers are cutting into net sales.
Source Fool.com
