Uber Seen Rallying After Q2 as Delivery Revenue Jumps 28%
Updated
Updated · Yahoo Finance · Aug 13
Uber Seen Rallying After Q2 as Delivery Revenue Jumps 28%
3 articles · Updated · Yahoo Finance · Aug 13
Summary
Uber’s shares are being tipped for a rebound despite sitting about 8% lower year to date, with analysts pointing to stronger Q2 operating trends than the stock price reflects.
Q2 growth was led by delivery, where revenue rose 28% year over year, while the transportation segment grew 1%; deliveries now account for more than one-third of total sales.
User momentum underpinned that performance: monthly active platform consumers increased 16% and trips climbed 18%, with CEO Dara Khosrowshahi saying Uber added more first-time users over the past 12 months than in any five-year period.
Profitability also improved, with non-GAAP net income up 29% to $1.6 billion and margin reaching 11.6%, strengthening the case that Uber’s fundamentals are outpacing its share performance.
At just under 17 times earnings versus DoorDash at about 110, Uber’s lower valuation is being cited as a catalyst for a stock rally, with autonomous vehicles seen as a longer-term growth tailwind.