Uber Stock Opens 2-Year Lows After Investment Losses

Uber is already down more than 30% in 2022

Deputy Editor
May 4, 2022 at 9:41 AM
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Uber Technologies Inc (NYSE:UBER) stock is down 9.9% at $26.56 ahead of Wall Street's opening bell, even after the rideshare name reported better-than-expected losses of 18 cents per share, and a revenue beat of $6.85 billion for the first quarter. Instead, weighing on the shares today is the $5.9 billion in net losses the company accrued during the quarter, due to equity investments in mobility and delivery company Grab, autonomous vehicle concern Aurora, and Chinese ride-hailing giant Didi.

Opening at its lowest level in two years, Uber Stock is adding to 29.7% year-to-date deficit it suffered coming into today's session, with multiple rallies stopped short at the 60-day moving average during the second quarter so far. The stock just came off its fourth-straight monthly loss, too, and is down over 46.3% year-over-year.

Analysts have yet to weigh in, but covering brokerages are still overwhelmingly bullish on the security. Of the 20 in coverage, 17 carry a "buy" or better rating, with three at a "hold." Further, the 12-month consensus price target of $58.18 is a whopping 105% premium to last night's close.

Meanwhile, at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), puts have been more popular than usual in the last two weeks. This is per Uber stock's 10-day put/call volume ratio, which sits in the highest percentile of its annual range.

 

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