What Happened?
Shares of ride sharing and on-demand delivery platform Uber (NYSE: UBER) fell 6.8% in the morning session after the company reported mixed third-quarter results that saw a slight miss on a key profitability metric.
The ride-sharing and delivery giant posted revenue of $13.47 billion, beating analyst estimates of $13.27 billion, and its GAAP earnings per share of $3.11 significantly surpassed the consensus of $0.69. However, the positive results were overshadowed by the company's adjusted EBITDA, which came in at $2.26 billion, narrowly missing Wall Street's expectation of $2.27 billion. While the company showed strong user growth, adding 28 million monthly active platform consumers for a total of 189 million, the slight miss on the profitability measure appeared to disappoint investors who were hoping for a cleaner beat across all key metrics.
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What Is The Market Telling Us
Uber’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 28 days ago when the stock dropped 2.3% on the news that investors took a breather following a record-setting rally, with concerns over the Federal Reserve's next move and a prolonged government shutdown weighing on sentiment. The pullback came as the U.S. government shutdown extended into its second week, creating uncertainty in the market. Investors were also closely watching for signals from the Federal Reserve regarding its monetary policy. This combination of factors led to a cautious mood on Wall Street, causing traders to pause and reassess their positions after weeks of significant gains. Adding to the unease, Chief Economist at Moody's Analytics, Mark Zandi, warned that 22 states are already showing clear signs of a recession, placing the broader U.S. economy in a precarious position.
Uber is up 46.6% since the beginning of the year, and at $92.59 per share, it is trading close to its 52-week high of $100.10 from October 2025. Investors who bought $1,000 worth of Uber’s shares 5 years ago would now be looking at an investment worth $2,259.
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