Here's Why Uber Stock Dipped Today
Shares of ride-sharing company Uber Technologies (NYSE: UBER) dipped on Wednesday after the company reported financial results for the fourth quarter of 2024. The Q4 results were fine but the forward guidance fell short of what investors were hoping for. That's why Uber stock was down 7% as of 10:20 a.m. ET.
To truly have a handle on Uber's business, investors need to understand its gross bookings. Gross bookings refers to the total dollar value of transactions on its platform, excluding driver tips. In Q4, gross bookings were up a solid 18% year over year to over $44 billion. And for the upcoming first quarter of 2025, management expects 17% to 21% growth.
When it comes to the Q4 numbers, Uber's management had guided for a 16% to 20% increase in gross bookings. Therefore, its 18% growth in Q4 was squarely in the middle and not problematic. However, investors appear to have hoped for better growth in the upcoming quarter, causing the stock to pull back today.
Source Fool.com
Uber Technologies Inc Stock
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