Uber reported impressive second-quarter results for 2024, surpassing analyst expectations with an adjusted earnings per share of $0.63, up from $0.47 a year earlier, and revenue of $12.7 billion, beating forecasts of $12.46 billion. The company also announced a massive $20 billion stock buyback program, signaling confidence in its undervalued shares. Gross bookings surged 17% to $46.8 billion, while adjusted EBITDA jumped 35% to $2.1 billion. Despite these strong fundamentals, Uber’s stock dipped 0.9% in premarket trading to $88.58, suggesting investor caution despite the positive performance.
Why the Muted Market Reaction?
Analysts speculate that the lukewarm response may stem from already-priced-in optimism, given Uber’s recent rally. The company remains bullish for Q3, projecting adjusted EBITDA between $2.19 billion and $2.29 billion, a 30-36% year-over-year increase. Meanwhile, its strategic moves in AI acquisitions—such as a recent deal involving an AI infrastructure specialist—highlight its expansion beyond core operations. While the stock’s premarket decline to $87.75 reflects short-term skepticism, Uber’s solid financials suggest potential stabilization ahead.
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