Whats Ubers Next Move After This?

"Uber Technologies (NYSE: UBER) ended last week with a whimper. 

The ridesharing leader closed Friday at $27.01 -- 40% below its $45 May IPO price  -- after its third-quarter earnings report showed the company continues to bleed cash profusely. The stock hit an all-time low of $25.58 on Wednesday after its post-IPO lockup period expired and insiders were allowed to sell their shares for the first time.

Despite the sell-off, there was some good news in the report. The company broke out its adjusted EBITDA by business segment and showed a surprising profit from its Rides segment, the company's biggest business, excluding costs for corporate general and administrative expenses, and research and development. Adjusted EBITDA from Rides grew 52% in the quarter to $631 million. However, it delivered losses in every other segment. 

Recognizing that the mood on Wall Street has changed following the collapse of WeWork's planned IPO, Uber CEO Dara Khosrowshahi did his best on the earnings call to reassure investors that the company was on track for profitability. "Our current target with a ton of hard work from all of our teams is to get to total company EBITDA profitability for the full year 2021, as we see the benefits of global scale and efficiency," he said.

Khosrowshahi's statement echoed a similar one from his counterpart at Lyft (NASDAQ: LYFT): Just weeks ago, CEOLogan Green said Lyft would be profitable on an adjusted EBITDA basis by the end of 2021. That company took big steps toward that goal in its third quarter, scaling back on coupons and incentives for riders.

However, Uber's path to profitability will be more difficult, primarily because it has ambitiously sought to be all things transportation, modeling itself after tech giants like Amazon and Alphabet." by Jeremy Bowman

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