Uber (UBER +0.65%), the world's largest ride-hailing company, will post its second-quarter earnings report on Aug. 5. Analysts expect its revenue and adjusted EPS to grow 13% and 23%, respectively. Should you buy Uber's stock before it posts that report?
Image source: Uber.
What happened to Uber over the past year?
Uber's stock has declined nearly 20% over the past 12 months, even though its monthly active platform consumers (MAPCs), total trips, and gross bookings all continued to rise.
In the first quarter, Uber's MAPCs grew 17% year over year to 199 million, while its total trips rose 20% to 3.6 billion. Uber One, its subscription platform, reached 50 million subscribers. That growth was driven by its suburban expansion, overseas growth, more frequent trips per user, and the expansion of Uber Eats with more grocery and retail delivery services.
NYSE: UBER
Key Data Points
However, concerns about its rollout of more affordable rides to attract new riders, competition from robotaxis, and non-cash charges from its investments weighed on its stock. Nevertheless, analysts still expect its revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow 12% and 29%, respectively, this year. With an enterprise value of $145 billion, Uber still looks like a bargain at 13 times this year's adjusted EBITDA. So if you expect Uber to dominate its space and keep growing for the foreseeable future, it's a great idea to buy its stock before it posts its next earnings report.
