Uber (UBER) stock has rallied over 34% in 2023, and the latest Q4 earnings will test the stock’s potential to move higher.
The ridesharing company will release its latest earnings results ahead of the US trading session on Wednesday morning.
UBER – Weekly Chart
Uber is heading for a critical level as the mid-2022 high meets a downtrend resistance from early-2021. A break above $34.30 can add to recent gains, while an obstacle here could see a correction for the $25-28 area.
The company is now on track to post its first profitable year based on adjusted EBITDA. That measure excludes interest, taxes, depreciation, amortisation, and the company’s significant stock-based compensation.
Three months ago, Uber predicted Q4 adjusted EBITDA of around $615 million, which would mean an annual gain of about $1.7 billion, compared to a loss of $774 million in the previous year. Market expectations for Q4 align with the last forecast management, while analysts expect a net loss of 16 cents per share.
Analysts also expect $8.4 billion in revenues at Uber, which would mark a gain of 46% year-over-year, boosted by a late 2021 acquisition and changes at the UK arm of the company. In November, Uber projected fourth-quarter gross bookings to be between $30 billion to $31 billion, for 23% to 27% year-over-year growth.
Traders can watch the market reaction to Uber’s Q4 results and trade the $34.30 level. A first profitable year taking the stock above resistance would be a bullish sign for the company.
