You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media.
This story originally appeared on Zacks
Shares of rideshare giant Uber Technologies UBER rallied on Tuesday after the company updated its third-quarter outlook.
Uber now expects gross bookings in the range of $22.3 billion to $23.2 billion compared to the prior forecast of $22 billion to $24 billion. Adjusted EBITDA was revised to a range of negative $25 million to positive $25 million, marking a dramatic upwards revision from previous estimates of a loss of $100 million.
Uber cites strong improvements in both its Mobility and Delivery segments, specifically surges in online food ordering and a recovery in ride bookings from the lows of the pandemic.
The company’s path to profitability is coming sooner than expected, hence today’s big share gains, and will mark an important milestone for Uber. Last month, rival Lyft LYFT posted an adjusted quarterly profit three months ahead of their target goal. Both companies’ profitability progress shows that rides are finally returning to pre-COVID levels.
UBER closed up 11.5% while LFYT stock gained 6.5% as well.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Lyft, Inc. (LYFT): Free Stock Analysis Report
Uber Technologies, Inc. (UBER): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research