Uber's stock dropped despite positive current quarter guidance, with focus on profitability and user retention.

From Yahoo Finance: 2025-05-07 08:03:00

Uber reported mixed first quarter results, but forecasted a strong current quarter outlook. Q1 Gross Bookings were $42.8 billion, up 18% on a constant currency basis, with Adjusted EBITDA at $1.9 billion, up 35% year over year. Uber’s Q2 outlook includes Gross Bookings of $45.75 billion to $47.25 billion.

Despite the positive outlook, Uber shares dropped in early trade as investors may have been expecting better projections. Uber CEO Dara Khosrowshahi emphasized profitable growth and increased user retention. The company saw revenue growth in its core ride-hailing and delivery segments in Q1, but freight fell 2%.

Uber did not indicate concerns over President Trump’s trade wars affecting growth, but acknowledged the potential impact of a weaker consumer base. The company is focusing on future initiatives like driverless offerings, with plans for autonomous vehicle expansion in partnership with WeRide in 15 more cities globally over the next five years.



Read more at Yahoo Finance: Stock drops despite upbeat current quarter guidance