Uber Earnings: UBER Stock In Spotlight after $20B Buyback Plan and Q2 Beat

Uber Technologies’ (UBER) stock surged over 1% in pre-market trading after the ride-hailing company announced a $20 billion share buyback program, nearly three times the $7 billion it has authorized so far. The company also reported second-quarter results that topped analyst forecasts.

Uber’s Q2 Performance

In Q2, Uber’s revenue climbed 18% year-over-year to $10.7 billion. This was driven by a 24.6% increase in Uber’s delivery segment and an 18.8% rise in its mobility division. Meanwhile, the company’s net income grew to $1.36 billion, or 63 cents per share, up from $1.02 billion, or 47 cents per share, in the same period last year.

Notably, gross bookings jumped 17% to reach $46.8 billion. Uber reported that membership in its $9.99 Uber One subscription surged 60% in June compared to the previous year, reaching over 36 million. These members now account for more than one-third of the company’s total bookings.

Uber Projects Upbeat Outlook

Moving ahead, gross bookings are projected to range between $48.25 billion and $49.75 billion in Q3, reflecting a year-over-year growth of 17% to 21% on a constant currency basis. At the same time, adjusted EBITDA is expected to fall between $2.19 billion and $2.29 billion, marking a year-over-year increase of 30% to 36%.

Overall, CEO Dara Khosrowshahi expressed confidence in the company’s ability to sustain growth amid broader concerns over U.S. consumer spending. He also stated that global growth in Uber’s mobility segment is expected to stay relatively steady in Q3, while U.S. growth will pick up momentum.

Is UBER a Good Stock to Buy Now?

Overall, Wall Street has a Strong Buy consensus rating on UBER stock, based on 30 Buys and four Holds assigned in the last three months. The average Uber stock price target of $103.5 implies an upside potential of 16% from current levels.

Year-to-date, UBER stock has grown by almost 50%.

See more UBER analyst ratings