Uber Technologies (UBER) rose today in pre-market trading in anticipation of the company’s Q3 earnings report, scheduled for October 31, 2024. Analysts are expecting earnings per share to come in at $0.37 on revenue of $10.98 billion. This equates to a 21.27% decrease and a 2.61% year-over-year increase, respectively, according to TipRanks’ data.
While this anticipated decline in earnings per share may create negative momentum, Uber has enjoyed an excellent trading year, rising 80%. If the company can show revenue growth, UBER stock should be able to shake off any negative momentum that the EPS may cause.
Over the previous eight quarters, Uber has missed earnings estimates four times. However, it has only missed revenue estimates twice during that same period.
Web Traffic Growth Has Increased
Uber’s website traffic data also suggests strong results for the company in the upcoming Q3 quarter. It should be noted that investors can use TipRanks’ Website Traffic tool to gain insights into a company’s upcoming earnings report. The tool offers information on how a company’s website domain performed over a specific time frame.
For UBER, TipRanks’ Website Traffic Chart reveals that traffic increased sequentially as well as year-over-year in Q4. According to the tool, the number of visits to apple.com increased by 0.34% from the year-ago quarter and 3.29% sequentially. This visit growth may be modest, but it suggests that demand for Uber’s services is still rising.
Bulls Say, Bears Say Tool: Key Takeaways
According to TipRanks’ Bulls Say, Bears Say tool, bulls have praised Uber for its foray into the field of autonomous vehicles through partnerships with Waymo and General Motors’ (GM) Cruise and highlighted the company’s continued strength in the ride-share market. Conversely, bears argued that companies like Waymo pose competition for Uber in markets such as California. However, bullish arguments outnumber the bearish.
What Do Options Traders Expect from Uber?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Currently, it indicates that options traders are expecting a 9.18% move in either direction.
Is Uber Stock a Buy, Sell or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on UBER stock based on 30 Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 83% rally in its share price over the past year, the average UBER price target of $89.31 per share implies 11.95% upside potential.
