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.
Disclaimer:
The comments, insights, and reviews posted in this section are solely the opinions and perspectives of authors and do not represent the views or endorsements of RHC Investments or its administrators, except if explicitly indicated. RHC Investments provides a platform for users to share their thoughts on financial market news, investing strategies, and related topics. However, we do not guarantee the accuracy, completeness, or reliability of any user-generated content.
Investment Risks and Advice:
Please be aware that all investment decisions involve risks, and the information shared on metadoro.com should not be considered as financial advice. Always conduct thorough research, seek professional advice, and exercise caution when making investment decisions.
Moderation and Monitoring:
While we strive to maintain a respectful and informative environment, we cannot endorse or verify the accuracy of all user-generated content. We reserve the right to moderate, edit, or remove any comments or posts that violate our community guidelines, infringe on intellectual property rights, or contain harmful content.
Content Ownership:
By submitting content to metadoro.com, users grant RHC Investments a non-exclusive, royalty-free license to use, display, and distribute the content. Users are responsible for ensuring they have the necessary rights to share the content they post.
Community Guidelines:
To maintain a positive and respectful community, users are expected to adhere to the community guidelines of Metadoro. Any content that is misleading, offensive, or violates applicable laws and regulations will be subject to moderation or removal.
Changes to Disclaimer:
We reserve the right to update, modify, or amend this disclaimer at any time. Users are encouraged to review this disclaimer periodically to stay informed about any changes.
