(C) Reuters. Is Uber Stock a Buy After Raising its Outlook?
Uber’s (UBER) shares surged after the company raised its guidance for the upcoming quarters on September 21. However, can the stock continue to gain even though it continues to face increasing scrutiny? Let’s find out.Popular ride-hailing services provider Uber Technologies, Inc. (NYSE:UBER) also provides delivery and freight services. In addition, it is making advances in the self-driving technology space and urban air transport. In an 8-K filing filed on September 21, the company mentions that its gross bookings are expected to be between $22.80 billion and $23.20 billion in the third quarter. Also, CFO Nelson Chai said, “With positive Adjusted EBITDA in July and August, we believe Uber is now tracking towards Adjusted EBITDA breakeven in Q3, well ahead of our prior guidance.”
The stock has gained 16.1% over the past month to close yesterday’s trading session at $47.25. However, it has lost 8.7% over the past three months and 13.6% over the past six months. According to a Brodmin report, the global gig economy is expected to reach $455 billion in 2023. However, UBER faces increasing regulatory pressure to reclassify its contractor drivers as employees. So, the stock’s near-term prospects look uncertain.
Here are the factors that could shape UBER’s performance in the upcoming months:
Is Uber Stock a Buy After Raising its Outlook?
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