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Uber reports $5.2 bn loss in Q2 as growth falls

12 August 2019

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.

Uber shares are down 8.5% to $39.29. Wolfe Research assumed coverage on Uber Technologies in a report on Tuesday, June 4th. Uber Technologies presently has a consensus rating of "Buy" and a consensus price target of $53.90. Finally, Morgan Stanley started coverage on shares of Uber Technologies in a report on Tuesday, June 4th. IFM Investors Pty Ltd purchased a new position in Uber Technologies in the 2nd quarter valued at $608,000. Both stocks saw a bump as a result, but much of Uber's gains were wiped out after it reported its results. Wedbush's price target indicates a potential upside of 34.98% from the company's current price. The stock had recovered slightly after the earnings call, down 6.75% to $40 as of 11:30am ET Friday. They set an "outperform" rating and a $62.00 price objective on the stock. They issued a "hold" rating and a $50.00 price objective for the company. Uber had disclosed in June this year that commissions in its overall Indian business had taken a beating from high discounting and incentives during the first three months of 2019, with average commissions falling by a sharp four per cent. The business's fifty day moving average is $43.28.

Uber Technologies (NYSE:UBER) last announced its quarterly earnings data on Thursday, August 8th. The company had revenue of $3.17 billion for the quarter, compared to analysts' expectations of $3.39 billion.

It's not all bad, Uber's revenue grew by fourteen percent (14%) over the same period in 2018, posting earnings of Kes.310 billion ($3.1 billion).

But the long-term debate about Uber, similar to Lyft, revolves around when it will be a profitable business and "we see little to sway opinions more positive or negative" from the second-quarter numbers.

In the most recent quarter, Uber saw its revenue in Latin America fall 24% from the prior year as it faced competitive pressure from Didi, a China-based ride-hailing company that has expanded in the region too. Its driver partners provide ridesharing services through a range of vehicles, such as cars, auto rickshaws, motorbikes, minibuses, or taxis, as well as based on the number of riders under the UberBLACK, UberX, UberPOOL, Express POOL, and Uber Bus names; and restaurant and delivery partners provide meal preparation and delivery services under the Uber Eats name.

Uber reports $5.2 bn loss in Q2 as growth falls