Uber Q4 Earnings Disappoint, Shares Drop
Key Metrics:
* Gross bookings guidance below expectations for next quarter
* Comments suggest delays in autonomous vehicle commercialization
* Earnings beat estimates due to $6.4 billion tax valuation release
* User growth exceeds expectations, leading to revenue outperformance
Market Reaction:
* Uber shares decline 7.4% in pre-market trading
* Market indicates news is significant but not a game-changer
* Share repurchase program authorized for up to $7 billion
Lyft's Strong Performance:
* Rides growth accelerates to 26% year-over-year
* Gross bookings and adjusted EBITDA guidance exceed expectations
* Positive free cash flow expected for full-year 2024
Uber's Financial Outlook:
* Gross bookings growth projected at mid to high teens for next three years
* Adjusted EBITDA expected to grow at over two times gross bookings growth
* Free cash flow forecast at over 90% of adjusted EBITDA annually
Investment Considerations:
* Uber shares up 2.5% YTD but still below 52-week high
* Long-term investors may consider buying on the dip
* Investors seeking AI-related semiconductor investments should consider alternatives to NVIDIA and AMD