tastytrade logo
Picture of black uber car next to gold car

May 16, 2022

Where Next for the Uber Stock Price After Earnings Beat?

By:Ryan Sullivan

Uber May 4th, 2022, Earnings Review

Uber Technologies, Inc. (UBER) reported its first quarter earnings for 2022 on May 4th, 2022, after the close. Trading on May 4th opened at $27.37, down 7.16% from the closing price on May 3rd of $29.48. The earnings consensus estimates for Q1 of 2022 were about -$0.27. On May 4th, Uber reported earnings of -$0.18 per share, beating estimates by 33.3%. However, their earnings beat was not enough to give the stock price a boost. A pre-Q1 earnings valuation of $27.37 per share was too high for investors given the data that Uber reported, which sent the price down further.

On May 4th, 2022, Uber reported a little more than $6.85 Billion in sales and a net income of -$5.93 Billion. Net income for Q1 2022 was down significantly from the previous four earnings reports. Q3 of 2021 reported net income of -$2.42 Billion and Q4 of 2021 reported net income of $892 Million. Because of the drop in price that we experienced on May 4th, 2022, it is likely that investors were caught off guard by the size of the negative net income that was reported for Q1 of 2022. Investors sold their shares even though Uber beat earnings estimates.

  • May 4th, 2022, earnings reported -$0.18 per share and beat estimates of -$0.27.
  • Uber reported negative net income for Q1 2022, at -$5.93 Billion, down significantly compared to earnings reports in 2021.

To trade Uber stock options or to buy shares, open an account on tastyworks

What Does Uber’s Balance Sheet Tell Us?

Uber’s balance sheet for the last five quarters appears nominal and what we would expect for a growing company. Each quarter, for the last five quarters, Uber has reported more assets and more liabilities than the previous year. This indicates that Uber is acquiring assets to grow its business and thereby acquiring more liabilities at a healthy rate. Uber’s sales over the last five quarters appear healthy as well, posting increasing quarter over quarter growth from about $2.9 Billion in sales in Q1 of 2021 to $6.85 Billion in sales in Q1 2022.

However, since Uber is not converting their asset growth to consistently increasing net income, investors are choosing to sell their stock at a faster pace than they are willing to buy. Uber’s stock price has been in a bear trend since February 11th, 2021, when it posted its all-time high price of $64.04, showing us lower lows and lower highs since then. At the time of writing Uber is trading at $24.21, down 62.2% from its all-time high price in February of 2021.

Key Takeaways:

  • Uber’s asset and liabilities growth over the last five quarters remains nominal.
  • Uber’s stock price has remained in a bear trend since late February of 2021.

SPY & UBER Stock Percentage Change

Fig. 1: Price percent change chart of SPY vs. UBER since January 1st, 2022.

What Does Uber’s Q1 2022 Earnings Report Mean for Investors Moving Forward?

Uber’s current price action is pushing new lows that we haven’t seen since April of 2020. Since that time, Uber has continued to increase its sales and acquire more assets. The doubt that inventors have acted on most likely relates to Uber’s inconsistent net income reports. Uber has communicated to investors that its recent net income decrease is due to the investments that have been put into other companies. Such as the Southeast Asian delivery company Grab, the autonomous self-driving company Aurora, and the Chinese based ride-hailing company Didi.

Fundamentally, it is understandable why Uber wants to get in early and big with its competitors around the globe. It is also understandable why Uber wants to invest in self-driving vehicles, to facilitate its ride-hailing and delivery services. The market has been looking for buyers and the $21.51 price level represents an important support level for Uber’s stock price. Given the opportunity that Uber has within its reach, especially with the coming self-driving vehicle era looming, this price level looks attractive to begin building a position.

As Uber’s sales increase, it is likely that Uber will continue to spend and invest in its own industry. That behavior may produce lack-luster earnings reports in the near term. However, if Uber can develop the technology required to reduce the cost of hiring drivers by introducing autonomous self-driving automobiles into their industry, the sales to net income ratio will swing wildly into profitability. If you believe that is possible, the current stock price represents a tremendous value. The alternative is, Uber does not continue to seek out innovation and grow its footprint and as a result crash its stock price into worthlessness.

tastyworks, Inc. and tastytrade, Inc. are separate but affiliated companies.


Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Related Posts

tastytrade content is provided solely by tastytrade, Inc. (“tastytrade”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, transaction or investment strategy is suitable for any person. Trading securities can involve high risk and the loss of any funds invested. tastytrade, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors, and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastytrade is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparison, statistics, or other technical data, if applicable, will be supplied upon request. tastytrade is not a licensed financial advisor, registered investment advisor, or a registered broker-dealer. Options, futures and futures options are not suitable for all investors. Prior to trading securities products, please read the Characteristics and Risks of Standardized Options and the Risk Disclosure for Futures and Options found on tastyworks.com. 

tastytrade is a trademark/servicemark owned by tastytrade.

tastyworks, Inc. ("tastyworks") is a registered broker-dealer and member of FINRA, NFA and SIPC. tastyworks offers self-directed brokerage accounts to its customers. tastyworks does not give financial or trading advice nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastyworks’ systems, services or products. tastyworks is a wholly owned subsidiary of tastytrade, Inc (“tastytrade”).

tastyworks, Inc. (“tastyworks”) has entered into a Marketing Agreement with tastytrade (“Marketing Agent”) whereby tastyworks pays compensation to Marketing Agent to recommend tastyworks’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastyworks. tastytrade is the parent company of tastyworks. tastyworks and Marketing Agent are separate entities with their own products and services. tastytrade has different privacy policies than tastyworks.

Quiet Foundation, Inc. (“Quiet Foundation”) is a wholly-owned subsidiary of tastytrade The information on quietfoundation.com is intended for U.S. residents only. All investing involves the risk of loss. Past performance is not a guarantee of future results. Quiet Foundation does not make suitability determinations, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of Quiet Foundation’s systems, services or products.

Small Exchange, Inc. is a Designated Contract Market registered with the U.S. Commodity Futures Trading Commission. The information on this site should be considered general information and not in any case as a recommendation or advice concerning investment decisions. The reader itself is responsible for the risks associated with an investment decision based on the information stated in this material in light of his or her specific circumstances. The information on this website is for informational purposes only, and does not contend to address the financial objectives, situation, or specific needs of any individual investor. Trading in derivatives and other financial instruments involves risk, please read the Risk Disclosure Statement for Futures and Options. tastytrade is an investor in Small Exchange, Inc.

© copyright 2013 – 2022 tastytrade. All Rights Reserved. Applicable portions of the Terms of use on tastytrade.com apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastytrade’s podcasts as necessary to view for personal use.