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Despite poor earnings, Uber makes a lot of money



<p class = "canvas atom canvas text Mb (1.0 em) Mb (0) – sm Mt (0.8 em) – sm" type = "text" content = "Shares of Uber ( UBER ) dropped Friday after the company reported & nbsp; & nbsp; poor second-quarter earnings that missed analysts' top-line estimates. The shipping company reported a huge loss on $ 5 billion . " data-reactid = "15"> Shares of Uber (UBER) dropped Friday after the company reported poor revenue in the second quarter, which dropped analysts' estimates on the top line. The ride company reported a huge loss of $ 5 billion.

<p class = "canvas-atom canvas text Mb (1.0 em) Mb (0) – sm Mt (0.8 em) – sm" type = "text" content = "In its second report ever as a listed company, Uber reported & nbsp; gross bookings of $ 15.76 billion, falling just shy of analysts' expectations to $ 15.83 billion. "data-reactid =" 16 "> In its second report as a listed company ever reported Uber gross bookings of $ 15.76 billion, falling just shy of analysts' expectations to $ 15.83 billion.

<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "“ Our platform strategy continues to deliver strong results, with trips up 35% and gross bookings up 37% in constant currency, compared to the second quarter of last year, "said CEO Dara Khosrowshahi & nbsp; in a statement . "Data-reactid =" 17 ">" Our platform strategy continues to deliver strong results, with trips up 35% and gross bookings up 37% in constant currency, compared to the second quarter of last year, " says CEO Dara Khosrowshahi in a statement.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Tom Essaye, publisher of daily market analysis The Sevens Report, told Yahoo Finance " The First Trade " that despite Uber's disappointing results, he is still optimistic about the company. "data-reactid =" 18 "> Tom Essaye, publisher of daily market analysis The Sevens Report, told Yahoo Finance" The First Trade "that despite Uber's disappointing results, he is still optimistic for the company.

" Revenues were definitely mixed, Sa Essaye. But, he said, "there is only so much money coming in, these guys want to figure out how they can make money. For long-term investors, I would be a buyer."

Waiting for Uber to "finally" get a Profits – which Khosrowshahi said would come down to the earnings call – are not good enough for others.

A display shows the Uber Technologies Inc. company logo on the day of its listing on the New York Stock Exchange (NYSE) in New York, USA, May 10, 2019. REUTERS / Brendan McDermid

"I need something a little more tangible than that," David Nelson, chief strategist at Belpointe Asset Management, said. “And what was really striking was the cost of costs, just huge. How much goes into stock option compensation? Many of these companies report revenue. When you dig deep and look at GAAP revenue … they lose money. "

<p class =" canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8 em) – sm "type =" text "content =" Uber & nbsp; reported a loss of $ 5.24 billion in the second quarter, although much of that was due to stock compensation following the IPO in May. "data-reactid =" 33 "> Uber reported a loss of $ 5.24 billion in the second quarter, though much of that was due to stock compensation after the May listing.

Essaye is still a believer in the sharing economy, saying Uber is a important part of that.

Uber's revenue – which was $ 2.87 billion in Q2, lower than expected – is "huge," Essaye said, but acknowledged that it is "confusing" when the CEO says "in the end "But at the end of the day, Uber is not just static either, right? Uber does different things," he said. "They are innovative, and it's really part of a new economy. "So definitely, there are some warts on the revenue call. But over a longer timeframe, this is the way the economy is going. Uber is a first mover and they have a technological advantage. I think it's worth something."

is skeptical of Uber's stock potential, Nelson clearly sees the value in his earnings almost it offers, saying, “I will admit I used it this morning. "

<p class =" canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Chelsea Lombardo is production assistant for Yahoo Finance. You can find more of her work here. "data-reactid =" 38 "> Chelsea Lombardo is a production assistant for Yahoo Finance. You can find more of her work here.

<p class =" canvas -at canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – -sm "type =" text "content =" Read the latest financial and business news from Yahoo Finance "data -reactid = "39"> Read the latest financial and business news from Yahoo Finance [19659021] <p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Follow Yahoo Finance on [19659022] Twitter Facebook Instagram Flipboard SmartNews LinkedIn YouTube and [19659028] reddit . "data-reactid =" 40 "> Follow Yahoo Finance on Twitter Facebook [19659040] Instagram Flipboard SmartNews LinkedIn YouTube and reddit .


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