Uber Reports $5.9 Billion Loss — Should You Worry About Your Stocks?

Moscow, Russia: Yellow taxi with Uber logo on the street. Yellow taxi cab with checker pattern. Uber taxi cab. stock photo
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In negative market news for many investors, Uber has reported a $5.9 billion first quarter net loss, per MSN. However, considering how well Uber performed in other bookings and earnings categories, investors could instead choose to toast potential good times ahead.

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The San Francisco-based ridesharing company reported better-than-expected first quarter results across the board as it continues to rebound from stilted pandemic performance. Second quarter predictions from Uber are above those previously forecasted as well, perhaps helping to set anxious investors’ minds at ease.

A full $5.6 billion of the $5.9 billion total loss has been attributed mainly to Uber’s investments in other ride-hailing ventures, namely in China’s Didi and Southeast Asia’s Grab, as well as investment in U.S. self-driving vehicle start-up Aurora. All three entities have underperformed over the past year, leading to significant “aggregate unrealized losses” on Uber’s part, MSN details. Didi’s share price is down 61.5% year-to-date, prompting it to move toward delisting its stock from the NYSE — a move upon which shareholders will vote on May 23, per Reuters.

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Uber showed more strength in its quarterly report as compared with its main American competitor, Lyft, whose shares fell 25% after forecasting. Uber’s performance in the first quarter saw bookings soar 35% to $26.4 billion, trips grow 18% year-over-year to 1.7 billion trips this quarter — and quarterly revenue grew 136% year-over-year to $6.9 billion. Uber’s ridesharing revenue rose almost 200% from a year ago and its Uber Eats food delivery service grew 12%.

Uber’s first quarter wins include:

  • Gross Bookings: Rose 35% year-over-year to $26.4 billion.
  • Mobility Gross Bookings: Up a 58% YOY to $10.7 billion.
  • Delivery Gross Bookings: Grew, but at a lower 12% YOY to $13.9 billion.
  • Revenue: Q1 2022 revenue grew 136% to $6.9 billion.

For its Q2 forecasts, per MSN, Uber expects gross booking to be somewhere in the amount of $28.5 billion to $29.5 billion. It projects its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be between $240 million and $270 million.

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“Our results demonstrate just how much progress we’ve made navigating out of the pandemic and how the power of our platform is differentiating our business performance,” said Uber CEO Dara Khosrowshahi. “In April, Mobility Gross Bookings exceeded 2019 levels across all regions and use cases. There’s never been a more exciting time to innovate at Uber and we’re focused on executing our strategy to grow our platform profitably.”

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About the Author

David Nadelle is a freelance editor and writer based in Ottawa, Canada. After working in the energy industry for 18 years, he decided to change careers in 2016 and concentrate full-time on all aspects of writing. He recently completed a technical communication diploma and holds previous university degrees in journalism, sociology and criminology. David has covered a wide variety of financial and lifestyle topics for numerous publications and has experience copywriting for the retail industry.

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