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Uber Q4 Earnings Preview: Is the Ride-Hailing Stock a Buy?

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Uber (UBER - Free Report) is scheduled to report its fourth quarter fiscal 2019 earnings results after the market closes on Thursday, February 6. The ride-hailing giant has struggled since going public last May. Yet, the question now is should investors think about buying Uber stock as it tries to become profitable?

Uber’s losses have grown as it races to expand amid price wars against Lyft (LYFT - Free Report) and tons of rivals in international markets. The company posted a $1.2 billion loss last quarter and a $5.2 billion loss during the second period.

Along with its profitability concerns, Uber faces multiple regulatory challenges. Despite all the worries, Uber and CEO Dara Khosrowshahi expect to report an adjusted full-year profit in 2021. To help the cause, the firm has started to cut some costs.

In the long-run, Uber wants to expand its reach beyond ride-hailing and Uber Eats. This includes its newer freight business, as it tries to eventually become the Uber of everything, within a driverless automotive future.

Uber’s earnings estimate revisions have trended upward heading into its Q4 report. This helps Uber stock earn a Zacks Rank #2 (Buy) right now, alongside an “A” grade for Momentum in our Style Scores system.

Investors should also note that Uber shares have surged 40% in the past three months to match fellow newly public Peloton (PTON - Free Report) , and outpace Lyft, Pinterest (PINS - Free Report) , and SmileDirectClub (SDC - Free Report) .

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