Uber Earnings Preview: Widening Losses May Haunt Investors
* Revenue expectation: $3.63 billion
* EPS expectation: -$0.7
Investors haven’t shown much faith in the future of the world’s largest ride-hailing company, Uber Technologies Inc (NYSE:UBER). Its shares have been in a downward spiral since its IPO, as the company struggles to show a path to profitability.
And any news of a quick turnaround is unlikely, in our view, when the company reports its third-quarter earnings on Monday after the market close. According to analysts’ consensus forecast, Uber will produce a loss of $0.7 a share on sales of $3.63 billion.
Losses from technology companies that are in a growth phase aren’t surprising. But what’s creating doubts about the San Francisco-based company is the absence of a clearly articulated strategy that could turn this unicorn into a profitable enterprise.
This uncertainty has hurt Uber's stock badly. Since its debut on May 10, its shares have fallen 30%. They tumbled more than 6% yesterday in New York, closing the session at $31.50.
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