Ridesharing and delivery company Uber Technologies (NYSE:UBER) is slated to release its third quarter Fiscal 2022 results on November 1, before the market opens.
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Wall Street expects Uber to post an adjusted loss of $0.18 per share in Q3. Notably, the expected Q3 loss is significantly lower than the prior-year loss of $1.28 per share. Meanwhile, revenue is pegged at $8.13 billion, representing an impressive year-over-year jump of 67.64%.
Uber’s stock is down almost 40% year-to-date. The company has a mixed track record of reporting its earnings. It has beaten the street estimates in only three out of the last eight reported quarters.
Notably, ahead of its Q3 earnings on October 19, Uber unveiled Uber Journey Ads, a new advertising division led by veteran Dr. Mark Grether. The newly formed division will enable brands to share important ad campaigns across Uber’s mobility and delivery businesses.
Dr. Grether, GM of Uber’s advertising division, stated, “While these consumers are making purchase decisions and waiting for their destination or delivery we can engage them with messages from brands that are relevant to their purchase journeys.”
He further added, “And with 1.87 billion trips last quarter, that means we can connect advertisers to consumers on average five times per month across rides and delivery.”
What is Uber’s Stock Prediction?
As per TipRanks, Uber Technologies’ average stock price prediction of $47 implies 70.91% upside potential from current levels.
The Wall Street community is clearly optimistic about the stock. Overall, the stock commands a Strong Buy consensus rating based on 22 Buys and one Hold.
Ending Thoughts
The Biden administration and the FTC’s efforts to make changes to the employment status of gig workers hired by companies like Uber may act as a regulatory headwind for the stock. Gig workers are independent contractors or temporary workers who sign formal agreements with on-demand companies to provide services to the company’s clients.
Investors will perhaps learn more about the regulatory impact as well as any accretion from the advertising business, if any, at the earnings call tomorrow.
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