Stock Story -
What Happened: Shares of ride sharing and on demand delivery service Uber (NYSE: UBER) jumped 5.3% in the morning session on continued positive momentum a day after the company reported second quarter earnings results that exceeded analysts' revenue, adjusted EBITDA and EPS estimates. After the initial pop the shares cooled down to $67.61, up 4.2% from previous close.
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What is the market telling us: Uber's shares are quite volatile and over the last year have had 10 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was a day ago, when the company gained 9.5% on the news that the company reported second-quarter earnings results. Uber increased its number of users this quarter. On the other hand, its revenue growth regrettably stalled, although adjusted EBITDA beat expectations by a healthy amount. Guidance was also mixed, with Q3 revenue guidance slightly below but adjusted EBITDA was in line. Zooming out, this was still a decent, albeit mixed, quarter, showing the company is staying on track.
Uber is up 16% since the beginning of the year, but at $67.61 per share it is still trading 16.9% below its 52-week high of $81.39 from February 2024. Investors who bought $1,000 worth of Uber's shares 5 years ago would now be looking at an investment worth $1,706.
![Uber (UBER) Stock Trades Up, Here Is Why](https://d68-invdn-com.investing.com/content/pice26a82f00a7333337e4788b91dc4a500.jpeg)