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- Ignoring Temporary Uncertainties: Uber
Ignoring Temporary Uncertainties: Uber
The pandemic and the recent market correction of tech stocks pushed Uber stock prices below the IPO level. And now they are recovering. Wall Street analysts believe the company is benefiting from high borrowing costs as Uber peers cannot afford lower prices in this lower-margin business without the risk of losses. Thus, Uber could continue to increase its market share.
The company reported revenues up by 29% to $8.8 billion in the Q1 2023. EBITDA was reported at $761 million, beating management’s expectations of $660-700 million. The company works as a taxi and delivery service that was affected by the pandemic differently. The delivery services segment has reported 20.6% up in the Q1 2023, but the EBITDA of it is at $288 million or 1.9% of the revenues compared to $30 million and 0.2% a year ago.
Uber has a lot to do to increase its margins, but the leading position in the business allows the company to weather temporary difficulties of the global macroeconomic environment. So, investors are advised to consider this stock as part of their investment portfolio.
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