What’s Going On Here?
Uber’s stock lifted after its reported better-than-expected first quarterly results as a public company.

What Does This Mean?
Uber’s $3 billion revenue for the first quarter of 2019 and $1 billion loss both turned out slightly better than predicted.

• Uber’s costs are still surging thanks to its expansion into several new and competitive areas (electric scooters & autonomous vehicles);
• The company reckons that marketing costs will lower as competition overall eases as a result of:
  • Uber gobbling up its main Middle Eastern rival;
  • Lyft’s curbing its own spending in the pursuit of profitability.

Why Should I Care
For markets: Investors are hungry for profit.

• Investors who picked up Uber’s stock on Friday may expect profit ahead; rival Lyft’s stock rose too.
• Uber’s ride-hailing business owns 3/4 of Uber’s earnings, so improving profitability there could help Uber drive up earnings more than at Uber Eats (where competition is likely to heat up as Amazon is back in the game).

The bigger picture: What Uber loses in profit, it makes up for in buzz.
Since it doesn’t make a profit, Uber’s stock appears expensive. But recent analyst interest in Uber shares has helped it rank highly for momentum.

Genuine Impact rates stocks based on characteristics like “value” (share price compared to earnings) and “momentum” (when analysts raise their earnings forecasts and recommend buying the shares).

Content sourse: Finimize. (2019) Uber Calls Shotgun. [Online] Available from: https://www.finimize.com/wp/news/uber-calls-shotgun [Accessed 4 June 2019]