Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Uber stock is in crisis - here's the biggest problems right now

It’s getting straight up embarrassing for Uber CEO Dara Khosrowshahi. And if he doesn’t soften up his approach with Wall Street and communicate better to that influential cohort - as rival Lyft has done in recent quarters - it could be investors that incur further pain in a stock that has gone in the toilet since an overhyped IPO back in May.

Uber’s stock (UBER) crashed close to 9% on Tuesday following the ride-hailing giant’s decidedly mixed third quarter. The stock has plunged 38% from Uber’s May 10 IPO price. While it was borderline refreshing (we are searching for straws here...) that Uber’s massive loss per share didn’t completely whiff Wall Street forecasts, it was hard to overlook the inherent ugliness of the quarter.

“Investors have a lot of questions around profitability,” Wedbush analyst Ygal Arounian said on Yahoo Finance’s The First Trade.

Khosrowshahi did his best impression (finally) of Lyft’s CEO Logan Green and outlined a path to profitability on the earnings call. The company expects to be profitable on an adjusted EBITDA basis in the full fiscal year 2021. If Uber would have did this months ago, the market would have probably embraced the long-awaited details on profits.

Arounian says Khosrowshahi and his team could do a better job holding the hands of Wall Street during this phase of growth and losses. The fact Uber only now offered more insightful bottom line guidance underscores Khosrowshahi’s lack of understanding on what investors need to hear from him.

This time around the market ignored the profit guidance, underscoring the growing lack of confidence in Uber’s management and sent the stock further into crisis mode. How else could one view the situation at Uber? You have a highly public CEO in Khosrowshahi telling the masses that profits are possible soon - an attempt to address one of the biggest mysteries in the tech space right now - and yet the stock is dumped.

Come on.


What else analysts are worried about on Uber

Besides Mr. Market tuning out Khosrowshahi’s promises, Wall Street remains concerned on several aspects of Uber based on Yahoo Finance’s conversations.

They include:

Lyft continues to do a better job communicating their vision to the Street. Lyft also gets higher marks relative to Uber on delivering up to their promises.

The outlook for Uber Eats over the next six months stinks. Not only is the business already losing large sums of money, but the losses could accelerate in the medium-term as struggling Grubhub dumps massive discounts into the market to drum up business (as they have recently signaled).

Uber’s IPO lockup occurs on Wednesday. Analysts estimate about 1.7 billion in shares will become available for sale. Given the terrible performance of Uber and tepid outlook, a selling tsunami could transpire.


The bottom line

At this point, it’s wildly unclear what puts the bottom in Uber’s stock once and for all. Khosrowshahi took a shot at doing it with his long-awaited profit shout out. Perhaps early investors need to completely dump Uber - now that they will be able to -as to remove the lockup worries overhanging the stock. But hell, even that could spook other Uber investors - if early investors dump the stock, it could be a no confidence vote in management’s timeline on profitability.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
United Nations Calls for Global Action Against Disinformation and Hate Speech Online
Tucker Carlson warns of an inevitable clash in Western societies over mass migration
OpenAI CEO Sam Altman praises the rapid progress of Chinese tech companies.
Poland's President Karol Nawrocki ENDS support for Ukrainian citizens:
Italy's PM Giorgia Meloni highlights record employment and economic growth
Chancellor Friedrich Merz Re-elected as CDU Leader, Opposes AfD Influence
Trump Directs Government to Release UFO and Alien Information
Trump Signs Global 10% Tariffs on Imports
UK Government Considers Law to Remove Prince Andrew from Royal Line of Succession
Two teens arrested in France for alleged terror plot.
US Supreme Court Voids Trump’s Emergency Tariff Plan, Reshaping Trade Power and Fiscal Risk
Greek Prime Minister Kyriakos Mitsotakis advocates for a ban on minors using social media.
Meanwhile in Time Square, NYC One of the most famous landmarks
Jensen Huang just told the story of how Elon Musk became NVIDIA’s very first customer for their powerful AI supercomputer
Former British Prince Andrew Arrested on Suspicion of Misconduct in Public Office
Former President Yoon Suk Yeol Sentenced to Life in Prison for Abuse of Authority
Unitree Robotics founder Wang Xingxing showcases future robot deployment during Spring Festival Gala.
German Chancellor Friedrich Merz calls for real name use on social media.
Italian Police Arrest Man After Alleged Attempt to Abduct Toddler at Bergamo Supermarket, Child Hospitalised With Fractured Femur
British Tourist Arrested at Hong Kong Airport After Meltdown and Vandalism
European Commission Plans Purchase Incentives Limited to Vehicles Manufactured Largely in the EU
French District of Pas-de-Calais Introduces Immediate License Suspension for Drivers Using Mobile Phones
Volkswagen Targets €60 Billion in Cost Reductions as Sales Decline and Global Pressures Intensify
Eighty-Year-Old Lottery Winner Sentenced to 16.5 Years for Drug Trafficking
Rubio Calls for Sweeping U.N. Reform, Saying It Has Failed to End Wars in Gaza and Ukraine
10,000 Condoms Distributed at Winter Olympics 2026 Athlete Village Depleted Within 72 Hours
Poland's President Advocates for Evaluating Independent Nuclear Weapons Development
Mayor of Serdobsk in Russia’s Penza Region Resigns After Housing Certificates Granted to Migrant Family Trigger Public Outcry
China’s EV Makers Face Mandatory Return to Physical Buttons and Door Handles in Driver-Distraction Safety Overhaul
UK Green Party Considering Proposal to Legalize Heroin for an Inclusive Society
OpenAI and DeepCent Superintelligence Race: Artificial General Intelligence and AI Agents as a National Security Arms Race
We will protect them from the digital Wild West.’ Another country will ban social media for under-16s
Heineken announces cut of 6,000 jobs due to declining beer demand
Apple iPhone Lockdown Mode blocks FBI data access in journalist device seizure
Belgium: Man Charged with Rape After Faking Payment to Sex Worker
KPMG Urges Auditor to Relay AI Cost Savings
Canada Opens First Consulate in Greenland Amid Rising Geopolitical Tensions
China unveils plans for a 'Death Star' capable of launching missile strikes from space
Investigation Launched at Winter Olympics Over Ski Jumpers Injecting Hyaluronic Acid
U.S. State Department Issues Urgent Travel Warning for Citizens to Leave Iran Immediately
Wall Street Erases All Gains of 2026; Bitcoin Plummets 14% to $63,000
Eighty-one-year-old man in the United States fatally shoots Uber driver after scam threat
Political Censorship: French Prosecutors Raid Musk’s X Offices in Paris
AI Invented “Hot Springs” — Tourists Arrived and Were Shocked
France Begins Phasing Out Zoom and Microsoft Teams to Advance Digital Sovereignty
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Global Shifts in War, Trade, Energy and Security Mark Major International Developments
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
×