Uber Q3 Earnings: Top-Line Growth, Profitability Could Propel Stock to New Highs

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Stocks Analysis by Investing.com (Damian Nowiszewski) covering: Uber Technologies Inc, LYFT Inc. Read Investing.com (Damian Nowiszewski)'s latest article on Investing.com

), the U.S. ride-hailing giant, is set to unveil its Q3 2023 results today amid a prevailing sense of optimism. Ahead of the earnings, eight analysts have revised their expectations upward, and there are no downward revisions in sight.a remarkable turnaround, reporting a net profit of $394 million. This marked a substantial improvement compared to the same period in 2022 when the company incurred losses exceeding $2.6 billion.

This positive reaction translated into a more than 5% increase in Uber's share price during the session, as it helped mitigate existing legal risks, aligning them with acceptable revenue levels. According to CEO Dara Khosrowshahi, it is possible to surpass the $1 billion barrier on this account as early as next year.

The competitive landscape is also a focal point for investors, with Lyft establishing itself as a chief rival. Lyft has recently adopted an aggressive pricing strategy, impacting its current performance while effectively attracting a growing customer base. In such a scenario, the primary target level resides within the historical peaks, located in the price range of approximately $64 per share.Unless we see an unexpected return of inflation to an upward trend, then we should not see any more interest rate hikes, and the Fed's much-awaited pivot could take place as early as next year.

 

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