Uber Technologies: Outlook Challenging For Ride Hailing Operator
Geoff Considine, Ph.D | May 16, 2022 20:08
- UBER is down 42% so far in 2022
- Q1 results on May 4, substantially missed expectations
- Higher gas prices and increasing service-sector wages challenging
- Consensus outlook bullish, but very large spread in analyst price targets
- Market-implied outlook is bearish, with high volatility
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- Inflation
- Geopolitical turmoil
- Disruptive technologies
- Interest rate hikes
Uber Technologies (NYSE:UBER) reported Q1 2022 results on May 4, dramatically underperforming earnings expectations. The consensus expected EPS was -$0.26 per share and the actual Q1 EPS was -$3.04 per share.
The shares dropped on the news, continuing a huge decline over the past year. The shares have July of 2021 . In both cases, the market-implied outlook was bearish, as it continues to be today.
For both my July and October posts, the consensus 12-month price target implied about a 50% gain. Today, the consensus 12-month price target implies a 110% gain. The dispersion among the analyst price targets has gotten wider over time, such that the current spread in views leads me to discount the Wall Street consensus. I am changing my rating on UBER to sell / bearish.
The current market makes it harder than ever to make the right decisions. Think about the challenges:
To handle them, you need good data, effective tools to sort through the data, and insights into what it all means. You need to take emotion out of investing and focus on the fundamentals.
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