Ignore the EPS Miss: UBER Bull Case in Deliveries & Uber One

Core Insights - Uber's shares are under pressure following weaker than expected earnings, currently trading down approximately 3.75% [1] - Despite the stock's performance, analysts believe the company's fundamentals remain strong, with gross bookings up 22% and significant growth in trips and delivery services [3][4] Financial Performance - Gross bookings increased by 22%, with notable growth in mobility and delivery segments [3] - The advertising business has reached a valuation of $2 billion, indicating a strong revenue stream [4] Market Sentiment - The market is currently reacting negatively due to concerns over the autonomous vehicle (AV) market, but analysts believe these fears will be alleviated over time [4][8] - The stock is trading at a PEG ratio of less than 0.5, suggesting it may be undervalued [10] User Engagement and Growth Potential - Uber has approximately 46 million members in its subscription service, which is expected to enhance long-term margin structures by increasing user retention and revenue per user [12][13] - The potential for dual users (those using both mobility and delivery services) is significant, indicating a pathway for higher profitability [5][6] Delivery Business Outlook - The delivery segment is projected to become a major profit driver, with a run rate business valued at $100 billion [15] - Consumer demand for fast delivery services remains high, with a willingness to pay for expedited options [16] Strategic Changes - Uber is undergoing leadership changes with a new CFO, which may influence investor sentiment but is not expected to alter the company's fundamental narrative significantly [18][19]