Uber share price: Group posts more than $1bn loss

on May 31, 2019
Updated: Mar 11, 2020

Uber Technologies (NYSE:UBER) has unveiled that it made more than a $1-billion loss in the first three months of the year. The news marks the company’s first results since its disappointing initial public offering (IPO) earlier this month.

Uber’s share price closed marginally lower in New York trading last night, giving up 0.25 percent to $39.80. The group’s shares, however, rose 1.76 percent to $40.50 in after-hours trading, while staying below the Uber IPO price of $45.

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Uber posts Q1 results

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Uber announced in a statement yesterday that its gross bookings had climbed 34 percent to $14.7 billion in the three months ended March 31, while revenue had come in 20 percent higher at $3.1 billion. The company, however, booked a $1.03-billion loss from operations, compared with a $478-million loss in the prior-year period.

The New York-listed group’s finance chief Nelson Chai, however, commented that the first-quarter results were “at or near the high end of the ranges” shared in the Uber IPO prospectus.

“We maintained stable regional ridesharing category position in the quarter and started to see signs of less aggressive pricing by some ridesharing competitors, which has continued into Q2 2019,” Chai continued.

The Guardian quoted Alyssa Altman, transportation lead at digital consultancy Publicis Sapient, as commenting that while “Uber continues to grow, and it’s fair to say it dominates the taxi-hailing market, but the company’s success is built on sand,” the reality was that the company “still hasn’t made a profit”.

Analysts on company

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Wedbush reaffirmed the company as a ‘buy’ this week, with a target on the Uber share price of $65.00, while Cross Research initiated coverage of the stock with a ‘hold’ rating, without specifying a valuation on the shares. According to MarketBeat, Uber currently has a consensus ‘hold’ rating and an average price target of $53.00p.

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