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    • Uber Bull Calls Rise Ahead of Earnings After Tesla’s Robotaxi Event Disappointed
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    Uber Bull Calls Rise Ahead of Earnings After Tesla’s Robotaxi Event Disappointed

    Online Niel Posted on

    Key recommendations

    • Uber reports earnings Thursday morning, with analysts expecting a substantial increase in profits and revenue compared to the same period last year.
    • Analysts are largely bullish on Uber after Tesla’s botched robotaxi event, allaying some concerns about competition in the ride-sharing space.
    • Jefferies called the Tesla event a “best-ever result” for Uber, as analysts left the event with questions about the rollout timeline for the robotaxi.

    Uber technologies (UBER) will report third-quarter earnings before the opening bell on Thursday, with the ride-sharing giant expected to report a substantial increase in profits and revenue over the same period last year.

    Uber is expected to report income just under $11 billion, up nearly 20 percent from last year’s $9.29 billion, according to estimates by Visible Alpha. net income it is expected to quadruple to $897.96 million, up from $221 million.

    Analysts are overwhelmingly bullish on Uber stock, with all 27 analysts tracked by Visible Alpha rating it a “buy,” with an average target price of $91.12, about 14% above Tuesday’s intraday price of $79.55. Several analysts reiterated their bullish stance on Uber, following Tesla (TSLA) robotaxi disclosure at the beginning of this month, with lack of details on Tesla’s plans, prompted Jefferies analysts to call the event the “best-ever outcome” for Uber.

    Analyst estimates for Q3 2024 Q2 2024 Q3 2023
    Income 10.98 billion dollars 10.7 billion dollars 9.29 billion dollars
    Earnings per share 42 cents 47 cents 10 cents
    net income $897.96 million 1.02 billion dollars 221 million dollars

    Key Value: Increase revenue from new features

    Bank of America analysts said Uber’s revenue growth in the quarter should be “supported” by new products and features such as taxis and new partnerships for Uber Eats with Costco (COST). They also said the company looks confident features such as autonomous vehicles (AVs) and the increased availability of travel booking could boost revenue in 2025.

    Business spotlight: Autonomous partnerships as Tesla Robotaxi event winds down

    Uber has announced a the number of partnerships with AV companies like Waymo over the past few months, with partnerships and Tesla’s lackluster robotaxi event improving analysts’ outlook on Uber. Bank of America analysts said they see “limited competitive threats” to Uber from Tesla’s AVs in the near term, as Tesla CEO Elon Musk offered few details on how the company’s AV ecosystem will work then when they are finally on the road.

    Jefferies analysts said Uber could be “uniquely well-positioned” to grow its partnerships with AV companies because Uber’s ecosystem of users provides a platform for companies to rent out their vehicles without building and managing their own service rental or application.

    Uber shares have gained nearly 30% since the start of the year, albeit down from record levels reached in the days following Tesla’s robotaxi event.

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