Uber Bull Talk Grows Ahead of Earnings After Tesla’s Robotaxi Event Underwhelmed
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Uber Bull Talk Grows Ahead of Earnings After Tesla’s Robotaxi Event Underwhelmed

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Key takeaways

  • Uber reports earnings Thursday morning, with analysts expecting a significant increase in profits and revenue from the same time last year.
  • Analysts are largely bullish on Uber after Tesla’s robot taxi event underwhelmed, easing some concerns about competition in the ride-sharing space.
  • Jefferies called Tesla’s event a “best-case outcome” for Uber, as analysts left the event with questions about the timeline for the robot taxi rollout.

Uber Technologies (UBER) will report third-quarter earnings before the opening bell on Thursday, with the ride-sharing giant expected to report a significant increase in profits and revenue from the same time last year.

Uber is expected to report income just $11 billion, nearly 20% over last year’s $9.29 billion, according to estimates compiled by Visible Alpha. Net income is expected to roughly quadruple to $897.96 million, up from $221 million.

Analysts are overwhelmingly bullish on Uber stock, with all 27 analysts tracked by Visible Alpha rating it a “buy,” with an average price target at $91.12, about 14% above Tuesday’s intraday price of $79.55. Several analysts reiterated their bullish stance on Uber after Tesla’s (TSLA) robotaxi unveiling earlier this month, with lack of details on Tesla’s plans leading Jefferies analysts to call the event a “best-case outcome” for Uber.

Analyst estimates for Q3 2024 Q2 2024 Q3 2023
Income 10.98 billion dollars 10.7 billion dollars 9.29 billion dollars
Earnings per share 42 cents 47 cents 10 cents
Net income $897.96 million 1.02 billion dollars 221 million dollars

Key metrics: Revenue growth from new features

Bank of America analysts said Uber’s revenue growth in the quarter should be “supported” by new products and features such as taxis and new partnerships for Uber Eats with Costco (COST). They also said the company appears confident features such as autonomous vehicles (AVs) and increased availability of ride reservations could boost revenue by 2025.

Business Spotlight: Autonomous partnerships as Tesla Robotaxi event falls flat

Uber has announced one number of partnerships with AV companies like Waymo in recent months, with the partnerships and Tesla’s lackluster robot taxi event improving analysts’ view of Uber. Bank of America analysts said they see “limited competitive threats” to Uber from Tesla’s AVs in the near term, as Tesla CEO Elon Musk offered few details on how the company’s AV ecosystem will work when they eventually hit the roads.

Jefferies analysts said Uber could be “uniquely well-positioned” to expand its partnerships with AV companies, as Uber’s ecosystem of users gives the companies a platform to rent their vehicles without building and managing their own rental service or app.

Uber shares have increased by nearly 30% since the beginning of the year, although down from record levels reached in the days following Tesla’s robot taxi event.

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