What happened
Uber Technologies (UBER -1.58%) shareholders trounced a surging market in November as their stock rose 49% compared to the 11% increase in the S&P 500, according to data provided by S&P Global Market Intelligence.
The rally put the ridesharing platform at a record high, up roughly 80% so far in 2020.
Image source: Getty Images.
So what
Investors got a look at some weak operating results from the company in early November. Ride demand is still trending lower as the pandemic reduces mobility demands across the country. That slump resulted in an 18% sales decline through late September.
On the bright side, Uber made progress extending into new growth lines like grocery and prescription deliveries while slashing its costs. That cost profile was also dramatically improved as California voters passed a ballot proposition that shielded ridesharing companies from many employment expenses.
Now what
Uber should return to growth over the next few quarters as the COVID-19 pandemic is brought under control by vaccines. The timing of that rebound is unclear, but investors still seem to be excited about Uber's chance at expanding as commerce moves toward home delivery. Its lower expense base, meanwhile, will ensure that most of the cash from the rebound flows through to the bottom line.
