Why is Uber stock down? Uber Technologies Inc. recently experienced its “strongest quarter ever,” according to CEO Dara Khosrowshahi. But on Wednesday, that didn’t seem to be enough to boost Uber’s stock, and the ride-hailing behemoth failed due to some of its outlook. Let’s discover why is the uber stock down!
Overview of Uber
What Uber powers is movement. It is essential to the company, and its veins are filled with it. Customer satisfaction encourages them to continuously think of new ways to improve their movement for all. They get out of bed every morning because of that. For every location that a customer wishes to visit, for anything that they desire, for every way they wish to make money, all throughout the planet, in the moment, at the amazing pace of right now, Uber thinks of a better approach to change the planet.
3 Reasons: Why is Uber Stock Down?
There might be several reasons to ‘why is Uber stock down’, but not necessarily all need to be read. Given below are the 3 most important reasons. Do check them out for better understanding!
Reason 1: Debate Over Autonomous Vehicles
A significant factor in the “dislocation” of Uber’s stock was apprehensions over autonomous vehicles. Shares were affected last year by Waymo’s new market entry as well as Elon Musk’s idea of a Tesla robotaxi. After soaring over 150% in 2023, Uber’s shares dipped 2% in 2024.
Reason 2: Claims of Accelerating Business
Although the adjusted EBITDA estimate was in line with consensus at the midpoint of the guide, Wedbush analyst Scott Devitt wrote to clients, “Shares are down pre-market; it means the business reflects slower expectations for bookings growth in 1Q due to FX headwinds and adjusted EBITDA guidance that likely did not clear investor expectations.”
Reason 3: Uber Stock Technical Ratings
The outcomes of Wednesday’s earnings represent a fresh blow to Uber’s shares. Uber’s shares retreated below its 21-, 50-, and 200-day moving averages. As per the IBD Stock Checkup, Uber’s stock has a Relative Strength Rating of only 36 out of a possible 99. But that’s better than the year-beginning lows of about 20.
Why is Uber Stock Down: Uber Financials
Despite the stock decline, Uber reported a number of impressive results for Q4, consisting of a revenue of billion $12.0, which was 20% higher than last year and higher than the $11.8 billion consensus estimate. Additionally, the company’s gross bookings—a measure that counts the amount of money paid for rides and orders placed via Uber’s platform—grew by 18%. Where on one hand investors and analysts are trying to figure out why is Uber stock down, on the other hand, the company is quite satisfied with its financial growth.
Conclusion
No matter ‘why is Uber stock down’ might be the question of the hour today, but the investors should not forget the strong financials of the company and consider this decline as a part of market corrections. Although personal risk tolerance should always be considered before making any buy or sell.
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