Skip to Main Content Skip to Search This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. Uber Earnings Crush Estimates. Why the Stock Is Getting Slammed. By Nate Wolf Updated Nov 04, 2025, 12:33 pm EST / Original Nov 04, 2025, 7:18 am EST Share Resize Reprints In this article ...

Market Overview - U.S. equity markets are experiencing a midday retreat on November 4, 2025, with major indexes pulling back as investors digest corporate earnings and economic data, alongside cautious sentiment in the technology sector [1][2] - The S&P 500 has declined approximately 1.3% by midday, the Dow Jones Industrial Average is down around 0.9%, and the Nasdaq Composite has seen a drop of 1.5% [2] Economic Data and Events - Investors are monitoring key economic data releases, including U.S. JOLTS Job Openings, International Trade in Goods and Services, and Factory Orders reports [3] - Upcoming reports include the ISM Services Business Activity index and the ADP Employment Change report, which are crucial due to the ongoing U.S. government shutdown [4] Technology Sector Performance - Palantir Technologies shares fell between 8% and 10% despite exceeding earnings forecasts and raising revenue guidance, attributed to profit-taking and concerns over high valuation [6] - Other tech stocks like Nvidia and Microsoft also experienced declines, with Nvidia down 1.7% to 2.8% and Microsoft down 0.7% [6] Automotive and Consumer Discretionary - Tesla shares slid 2.7% after Norway's sovereign wealth fund announced intentions to vote against CEO Elon Musk's compensation package [7] - Norwegian Cruise Line saw an 11% drop following a mixed earnings report and forecast [7] Earnings Reactions - Zoetis shares plunged 13% after revising its sales forecast downwards, while IDEXX Laboratories surged 14.8% after reporting strong earnings [8] - Ferrari announced a 7.4% year-over-year increase in net revenues, with diluted earnings per share reaching Euro 2.14 [9] Upcoming Earnings - Key companies scheduled to report earnings include Advanced Micro Devices, Shopify Inc., Arista Networks, Uber Technologies, Amgen, Eaton Corporation, Pfizer, and Spotify Technology [10]

Core Insights - Uber reported strong growth in Q3 earnings but faced a significant profitability hit due to a $479 million charge related to undisclosed legal and regulatory matters [1][2][3] Financial Performance - Operating income for the quarter was $1.11 billion, falling short of the expected $1.62 billion, attributed to legal and regulatory issues [2] - Revenue reached $13.47 billion, a 20% increase year-over-year, surpassing Wall Street's estimate of $13.28 billion [4] - Gross bookings climbed 21% to $49.74 billion, exceeding the expected $48.73 billion [4] - Net income was reported at $6.62 billion, or $3.11 per share, compared to $2.61 billion, or $1.20 per share, a year earlier; however, this included a $4.9 billion benefit from a tax valuation release, indicating weaker operational performance [6] Operational Highlights - The company recorded 3.5 billion trips in Q3, marking a 22% increase from the same period last year, indicating significant growth in trip volume [5] Legal Challenges - The $479 million legal charge is part of ongoing legal proceedings and governmental investigations, which are unpredictable in nature [3] - Uber is currently facing multiple legal battles, including a $125 million lawsuit from the U.S. Department of Justice alleging discrimination against passengers with disabilities [7]

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Uber Technologies (NYSE: UBER) delivered a massive earnings beat this morning, but the stock is selling off in premarket trading anyway. ...

Group 1 - Palantir shares fell by 7.7% following short-selling by Michael Burry, the figure behind the movie "The Big Short" [1] - Nvidia experienced a decline of 2.0% amid the same short-selling activity [1] - Tesla's stock dropped by 3.0% after a tragic incident where five individuals lost their lives due to a malfunctioning car door post-collision, leading to a lawsuit in the U.S. [1] Group 2 - Uber's shares decreased by 7.3% as Q3 adjusted EBITDA fell below expectations [1] - Beyond Meat continued its decline with a 9.4% drop after delaying the release of its Q3 financial report [1] - Sarepta Therapeutics saw a significant drop of 36% after its two gene-targeted therapies for Duchenne muscular dystrophy failed to meet primary study goals in late-stage clinical trials [1]

Core Insights - Uber's freight business revenue remained stagnant at $1.31 billion in Q3, unchanged from the previous year, with a slight increase in adjusted EBITDA loss to $20 million from $19 million [1] - Overall, Uber reported record income from operations of $1.1 billion and adjusted EBITDA of $2.3 billion, reflecting a 33% year-over-year increase, driven by mobility and delivery segments [2] Financial Performance - Uber's trips grew by 22% and gross bookings increased by 21% to $49.7 billion, with delivery revenue surging by 29% and mobility growing by 20%, indicating a shift towards higher-margin services [5] - The company forecasts Q4 gross bookings between $52.25 billion and $53.75 billion, with adjusted EBITDA projected to reach up to $2.51 billion, representing growth of up to 36% year over year [6] Strategic Direction - CEO Dara Khosrowshahi emphasized the importance of innovation and execution in driving performance, highlighting the logistics ecosystem as central to Uber's future technology roadmap [3] - Plans to integrate human drivers and autonomous vehicles into a single marketplace were discussed, along with the intention to expand into local commerce and utilize generative AI for operational optimization [4]

Core Viewpoint - Uber's stock dropped over 7% in pre-market trading following its Q3 earnings report, which revealed weaker-than-expected operating profit and adjusted EBITDA figures [1] Financial Performance - For the three months ending September 30, Uber reported an operating profit of $1.11 billion, below analyst expectations of $1.62 billion [1] - Adjusted EBITDA was $2.26 billion, also slightly lower than market expectations [1] Operational Metrics - Despite the weak revenue profits, Uber's total bookings increased by over 20% year-on-year to $49.7 billion, marking the largest growth rate in 2023 [1] - The company anticipates adjusted core profits for Q4 to be between $2.41 billion and $2.51 billion, slightly below the market expectation of $2.48 billion [1] Future Outlook - The CEO indicated that profitability from autonomous ride-hailing services is not expected in the coming years [1]

Core Insights - Uber's stock dropped over 7% in pre-market trading, closing at $92.43 [1] - The company's Q3 operating profit was $1.11 billion, below analyst expectations of $1.62 billion [1] - Adjusted EBITDA was $2.26 billion, also slightly below expectations [1] - Total bookings increased over 20% year-on-year to $49.7 billion, marking the largest growth in 2023 [1] - For Q4, Uber expects adjusted core profit between $2.41 billion and $2.51 billion, slightly below the market expectation of $2.48 billion [1] - The CEO indicated that profitability from autonomous ride-hailing is not expected in the coming years [1]

Financial Data and Key Metrics Changes - Q3 2025 saw a 22% growth in trips, marking the fastest growth since 2023, with mobility trips growing by 21% [5] - Gross bookings increased by 21%, while average pricing remained relatively flat, leading to record adjusted EBITDA and free cash flow [5] - The company expects high teens gross bookings growth and low to mid-30s EBITDA growth in Q4 [5] Business Line Data and Key Metrics Changes - The delivery business experienced its fastest growth in four years, with a notable acceleration in grocery and retail, now at a $12 billion gross bookings run rate [21][22] - Cross-platform consumers spend three times more and retain 35% better than single-product users, indicating strong engagement across business lines [12][22] Market Data and Key Metrics Changes - The U.S. market showed strong growth, particularly in cities with autonomous vehicles (AVs), with driver earnings in Austin outpacing the rest of the U.S. [24] - The company reported that markets with AVs, such as Phoenix, Austin, and Atlanta, grew more than twice the rate of other U.S. markets [24] Company Strategy and Development Direction - The company has defined six strategic areas of focus, including enhancing trip experiences, integrating human drivers with AVs, investing in local commerce, and leveraging generative AI [7][8] - The focus on cross-platform engagement aims to deepen customer relationships and extend profitability [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong performance, with expectations for sustained growth and profitability [5][39] - The company is committed to annual profit expansion and balancing investments across its product lines [41] Other Important Information - The partnership with NVIDIA aims to enhance AV capabilities and data collection, which is crucial for scaling operations [13][79] - The company is expanding its membership program, Uber One, which has shown strong growth and retention rates [51] Q&A Session Summary Question: Can you discuss the path to increase the 20% of maps used in markets with mobility and delivery? - Management highlighted that only 20% of consumers use both services, with specific programs being set up to drive cross-platform behavior [11] Question: Can you elaborate on the delivery side and its impact on user growth? - The delivery business has accelerated, with grocery and retail driving new user growth and frequency [21] Question: What is the impact of AVs on supply and demand? - AVs are currently in early stages, but markets with AVs are growing faster, leading to healthy driver earnings [24] Question: Can you provide insights on the urban versus suburban strategy? - Sparse geographies are growing at 1.5 times the rate of denser markets, with significant upside potential [29] Question: How is the company addressing competition in the European food delivery market? - The company maintains a leading position in Europe and focuses on expanding merchant selection and improving service [31] Question: What are the margins and investments for the AV business? - AVs are currently unprofitable, but investments are expected to build liquidity and improve profitability over time [43] Question: Can you explain the loyalty gains from the Uber One program? - Uber One has shown strong growth, with significant benefits for members, leading to improved retention [51] Question: What are the new earning opportunities under the multiple gigs initiative? - The initiative aims to provide diverse earning opportunities, including AI-related tasks, enhancing driver retention and profitability [61]