Shares of Uber (UBER Quick QuoteUBER - Free Report) fell more than 5% on Tuesday after the company reported second-quarter results that missed analysts’ expectations for revenue but offered upbeat outlook. The company’s earnings of 18 cents beat Zacks Consensus Estimate of one penny loss.

However, reported revenues of $9.23 billion fell short of Zacks Consensus Estimate of $9.32 billion. Revenues in the quarter was up 14% year over year while costs grew only about 2%. CEO Dara Khosrowshahi said Uber attained two major milestones during the quarter: its first quarter of free cash flow over $1 billion and its first GAAP operating profit, as quoted on CNBC.

Khosrowshahi also indicated that revival in the travel business had opened an opportunity for Uber to become a bigger player - especially in the UK, where travel agencies still play an outsize role compared with other markets such as the United States.

For the third quarter of 2023, Uber said it expects to report gross bookings between $34 billion and $35 billion and adjusted EBITDA of $975 million to $1.025 billion, both ahead of analysts’ expectations, according to StreetAccount, per the CNBC article.

Khosrowshahi has been striving to improve the company’s bottom line, stressing on cost discipline, with layoffs and other measures. The company’s taxi business is picking up steam as part of the post-pandemic recovery, while food deliveries have remained healthy.

Time to Buy the Dip?

Uber has a Zacks Rank #1 (Strong Buy). A better-than-expected U.S. and Euro zone economic growth, in any case, should bolster the transportation activities. The stock has an upbeat growth and Momentum score of “A.”

Uber’s Delivery business benefits from rising online order volumes. The company’s efforts to expand its delivery operations through successive acquisitions are encouraging. Continued recovery in Mobility operations has been aiding the company.

Still, if investors have little bit doubts about investing in Uber right now (especially due to the latest revenue miss), they can bet on Uber-heavy ETFs. The ETF approach minimizes the company-specific risks. Plus, the economic improvement makes the cases stronger for investing in sector ETFs like transportation (read: Transportation ETFs Rally on Soft Landing Optimism).

ETFs in Focus

iShares US Transportation ETF (IYT Quick QuoteIYT - Free Report) – 11.91% weight in Uber

First Trust US Equity Opportunities ETF (FPX Quick QuoteFPX - Free Report) – 9.74% weight in Uber

Clockwise Capital Innovation ETF (TIME Quick QuoteTIME - Free Report) – 7.44% weight in Uber

Franklin Disruptive Commerce ETF (BUYZ Quick QuoteBUYZ - Free Report) – 5.55% weight in Uber

ALPS Global Travel Beneficiaries ETF – 5.15% weight in Uber