Key insights
- Uber's earnings release is expected to cause a significant price swing. Options pricing suggests a potential 7% move. Analysts are largely bullish, anticipating strong gross bookings and revenue growth. Investor focus will be on robotaxi impact and delivery business progress. Positive earnings could improve sentiment after a weak start to the year, but the overall market impact is limited to short-term trading.
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Uber Technologies is set to report its latest quarterly results ahead of the opening bell Wednesday, with a big move expected from the rideshare giant's stock following the results.
Current options pricing suggests traders are anticipating Uber (UBER) shares could swing up to about 7% by the end of the week. A move of that size from Tuesday's level around $74 could see Uber shares rise above $79, their highest point since early February. At the low end, shares could slip below $70.
Uber shares are down about 9% from where they started the year, amid concerns about headwinds from higher fuel costs, along with competition in robotaxis and grocery delivery services from other companies.
Wednesday's earnings could give Uber an opportunity to improve sentiment around the shares after a tough start to the year for the stock.
UBS analysts recently wrote that investors will likely be looking for updates on the potential impact of robotaxis on Uber's business, along with the progress of investments in growing its delivery business.
Analysts surveyed by Visible Alpha currently forecast first-quarter gross bookings of $52.89 billion, up more than 23% year-over-year. The rideshare and delivery company is seen reporting adjusted earnings of 70 cents per share on a 15% jump in revenue to $13.29 billion.
Wall Street analysts are largely bullish on Uber, with 18 of the 20 analysts with current ratings tracked by Visible Alpha calling the stock a "buy," compared to two neutral ratings. Their average price target just under $103 would suggest upside of nearly 40% from Tuesday's level.