What Happened?
Shares of ride sharing and on-demand delivery platform Uber (NYSE: UBER)
fell 5.9% in the morning session after the company reported second-quarter results that beat profit estimates but provided a weaker-than-expected outlook for the third quarter. While the company's adjusted earnings per share of $0.81 and adjusted EBITDA of $2.82 billion both surpassed Wall Street's expectations, investors were more focused on the future.
The primary cause for the stock's decline was Uber's third-quarter non-GAAP earnings per share guidance, which came in slightly below consensus estimates. This disappointing forecast overshadowed positive takeaways from the second quarter, including a 12.2% year-on-year increase in revenue and significant user growth, with the company adding 28 million Monthly Active Platform Consumers over the last year.
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What Is The Market Telling Us
Uber’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 8.5% on the news that the company posted decent first-quarter 2026 results alongside an optimistic forecast for the upcoming quarter. While the company's revenue of $13.2 billion represented 14.5% year-over-year growth, it fell slightly short of analyst expectations. However, profitability was a bright spot, with adjusted earnings per share of $0.72 and adjusted EBITDA of $2.48 billion both beating Wall Street's estimates.
The company also demonstrated strong user growth, with Monthly Active Platform Consumers increasing by 29 million year-over-year to 199 million. Capping off the positive news, Uber's guidance for second-quarter bookings and adjusted EBITDA both came in ahead of consensus forecasts, signaling management's confidence in continued momentum.
Uber is down 19.2% since the beginning of the year, and at $66.96 per share, it is trading 33.1% below its 52-week high of $100.10 from October 2025. Despite the year-to-date decline, investors who bought $1,000 worth of Uber’s shares 5 years ago would now be looking at an investment worth $1,555.
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