Dara Khosrowshahi, CEO, Uber
Carlo Allegri | Reuters
Shares of Uber hit a fresh all-time low of $35. 08 during intraday trading on Wednesday as the stock continues to slide on its earnings whiff. It was the first time that the stock fell below $36. The stock was down more than 3 percent Wednesday, cutting about $2 billion from its market cap, bringing it under $60 billion, roughly $10 billion under its evaluation at the end of its first trading day in May.
Uber reported a net loss of $5. 24 billion in its second quarter of 2019, blaming stock based compensation. But even excluding the reimbursement, Uber’s losses amounted to about $1.3 billion, about 30% worse compared to the last quarter. The business reported earnings of $3. 17 billion for the quarter, missing analyst estimates of $3. 36 billion, based on Refinitiv.
Advisors had expressed skepticism over Uber’s high valuation resulting in its IPO. The business reported an adjusted EBITDA loss of $1. 85 billion in 2018 and demonstrated slowing earnings growth in its own S-1 filing, but Uber allegedly searched a valuation as large as $120 billion because it contrasts its public introduction. In the end, the inventory listed its shares at a nondiluted evaluation of $75. 46 billion.
While CEO Dara Khosrowshahi characterized the next quarter loss as a “once-in-a-lifetime” hit in an interview with CNBC’s David Faber and Jim Cramer on Friday, investors are still unsure of Uber’s route to profitibility.
On Monday, shortly before Uber stocks hit their then-lowest closing cost of $37, early investor Bradley Tusk told CNBC the company should dominate in more companies than its ride-hailing and delivery solutions to reach profitability.
“They’ve got to be that A-to-Z for transportation,” Tusk said. “Whether you’re getting yourself to A-to-B on a bike, scooter, or a car, bus, whether furniture being shipped on a truck, or a burrito from a messenger, they’ve got to be the default for all of that.”
-CNBC’s Annie Palmer contributed to this report.