Uber Stock Is Down 47% YOY, Should You Buy After Raised Q1 Guidance?

Trade Uber Shares Your Capital Is At Risk
Ollie Martin
Updated: 7 Mar 2022

Key points:

  • Uber raises Q1 guidance from $100-130M to $130-150M on Omicron recovery
  • The company has benefited from a return to travel and leisure
  • Investors should look ahead; with travel set to soar in the summer months
  • How To Buy Uber Shares

Uber (NYSE: UBER) didn’t have the worst time during the pandemic; although its ride-hailing services suffered over stay-at-home regulations, the company’s lifeline came through delivery services, which unsurprisingly soared as people took to Uber Eats to substantiate eating-out for eating-in. Still, mobility companies have suffered over the last few years as investors shifted towards lower-risk alternatives in a time of uncertainty.

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With Omicron fading and pandemic sentiment becoming more and more steadfast, Uber could be a great low-priced play for the mobility sector as ride-hailing returns in full force whilst delivery services have become a firm feature of modern culture. Upping its earnings forecast for the current quarter, Uber is clearly feeling optimistic about the powerful bounce in post-pandemic trends; as airport bookings grew in tandem with a gradual return back to workplace traveling.

Uber

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Previously, the company expected an EBITDA of between $100M and $130M, but today’s raise leaves the new guidance between the $130M and $150M range; spurring a short-lived price surge in early market trading this morning.

For a company like Uber, an all-out return to leisure, nights out, and workplace traveling has been a huge weight off the shoulders. While the company might see a small dip in delivery services, the likelihood is that this is a trend that is definitely here to stay; not a growth sector that is reliant on pandemic restrictions.

Looking forward, the coming quarters could see continued growth for the mobility mogul. The rebound in summer travel will work in Uber’s favor, with gross airport bookings in February already up more than 50% from the month before, with plenty more growth expected to follow.

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