Uber Shares Fall 9% Despite Reporting Strong Q3 Earnings

"Uber Technologies delivered a massive earnings beat this morning, but the stock is selling off in premarket trading anyway. That's the tension worth watching right now. Here's What Happened Uber reported Q3 earnings this morning with EPS of $1.20, crushing the $0.70 consensus estimate. Revenue came in at $13.47 billion, missing expectations of $13.54 billion by $70 million. The stock declined 9% in premarket trading to $92.25, suggesting investors are focusing more on the revenue shortfall and guidance implications than the headline EPS surprise."

"Trips and Bookings Drive the Momentum The real story here is operational velocity. Gross bookings reached $49.74 billion, up 21% year over year. Trips increased 22% YoY, marking what CEO Dara Khosrowshahi called "one of the largest trip-volume increases in the company's history." Monthly active platform consumers grew 17% YoY, indicating consistent user expansion across the platform. Both segments showed strength."

"Mobility revenue hit $7.68 billion, up 20%, while Delivery revenue jumped to $4.48 billion, up 29%. Adjusted EBITDA expanded 33% YoY to $2.26 billion. Free cash flow reached $2.23 billion, a signal that profitability is translating into real cash generation, not just accounting improvements. The $70 million revenue miss is modest in absolute terms but meaningful in context. With gross bookings accelerating and trips surging, you'd expect revenue to track higher."

Uber reported Q3 EPS of $1.20 versus $0.70 expected and revenue of $13.47 billion versus $13.54 billion expected, a $70 million shortfall. Gross bookings rose 21% year over year to $49.74 billion and trips increased 22% YoY, while monthly active platform consumers grew 17% YoY. Mobility revenue reached $7.68 billion, up 20%, and Delivery revenue was $4.48 billion, up 29%. Adjusted EBITDA expanded 33% YoY to $2.26 billion and free cash flow was $2.23 billion. Operating income was $1.11 billion and net income $6.63 billion, aided by a $4.9 billion tax valuation release. The revenue miss suggests mix or pricing pressures and influenced premarket selling.

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