Uber falls after quarterly revenue misses Wall Street's expectations
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- Uber stock fell as much as 5% on Thursday after reporting fourth-quarter results.
- Fourth-quarter revenue of $3.17 billion was below Wall Street's target of $3.58 billion.
- Net loss of $0.54 per share narrowed from $0.64 per share a year earlier.
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Uber shares fell by as much as 5% early Thursday as revenue in the fourth quarter of 2020 fell short of Wall Street's expectations, though the ride-hailing company highlighted growth at its food-delivery service as the COVID-19 pandemic wears on.
The company late Wednesday posted revenue of $3.17 billion, lower than expectations of $3.58 billion. Revenue fell by 16% from a year ago when it came in at $3.75 billion.
Shares fell by 5.2% to $59.91 in premarket trade Thursday. During 2021, the stock has gained about 24%.
Mobility revenue sank 52% to $1.47 billion from a year earlier. Revenue from its delivery category, which includes Uber Eats, however, soared to $1.36 billion from $418 million, stoked by in part by customers ordering meals as they stay at home to avoid the coronavirus crisis.
The company's net loss of $0.54 per share was less than expectations of a loss of $0.55 per share. A year earlier, Uber lost $0.64 per share.
Wedbush Securities on Thursday raised its 12-month price target on Uber to $76 from $60, "reflecting the strength in Delivery, Mobility a re-opening play, and a clearer path to profitability."
Read more: Uber to acquire alcohol delivery startup Drizly for $1.1 billion
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