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Is Uber Technologies (UBER) a Buy After Q2 Earnings Announcement?
Ride-hailing giant Uber Technologies (UBER - Free Report) reported quarterly results yesterday before the opening bell. UBER, a Zacks Rank #3 (Hold), fell short of earnings estimates for the first time in over a year. But as the stock is soaring, is now the time to buy?
UBER posted an adjusted loss of -$0.47/share for the second quarter, widely missing the Zacks Consensus Estimate of -$0.25/share. Quarterly revenues grew by 105% year-over-year to $8.1 billion, topping the Zacks Consensus Estimate by 8.59%. The stock reacted positively to the announcement, as the company became cash-flow positive for the first time. In yesterday’s session, shares surged nearly 19%, and are currently up another 4% during morning trading.
UBER stock is still off about 27% since the beginning of the year. UBER is part of the Zacks Internet – Services industry, which ranks in the bottom 45% out of approximately 250 industry groups. Investors may want to act with caution following the mixed Q2 results, as UBER is now approaching an important resistance level in the 200-day moving average.