Share prices tanked for Uber on Thursday during after-hours trading following the rideshare giant’s release of its quarterly earnings report, which revealed misses on both revenue and earnings per share.
That tumble marked a sharp contrast from earlier in the day when Uber ($UBER) shares had been trading upwards of 8 percent.
Uber posted $2.87 billion in revenues, compared to the $3.36 billion that analysts had expected. The company also reported $4.72 in losses per share, more than a dollar off of analysts’ expectations of just $3.12.
In a press release CEO Dara Khosrowshahi touted a rise in trips and gross bookings, and in a letter to investors, executives pointed to other positives, including the expansion of its new higher-end UberX service, Uber Comfort, further progress in the development of self-driving technology, and growing customer acquisition in markets like Argentina and Germany.
The company also highlighted the expansion of Uber Eats, which remains one of the most promising areas of growth for the rideshare company's businesses. That service saw 72 percent growth in revenues over the same quarter last year.
The number of consumers that used Uber’s delivery service each month is also up 140 percent, year-over-year.
“That business is extremely competitive, and I don’t see any indication of rationalization whatsoever,” said John Jannarone, the editor of IPO-Edge, though he warned that the company has not yet differentiated itself from other food delivery services.
While both Lyft ($LYFT) and Uber had bumpy starts following their public offerings earlier this year, the former saw its share prices level off following a generally positive earnings report release on Wednesday.
Spain's government has fined Airbnb 64 million euros or $75 million for advertising unlicensed tourist rentals. The consumer rights ministry announced the fine on Monday. The ministry stated that many listings lacked proper license numbers or included incorrect information. The move is part of Spain's ongoing efforts to regulate short-term rental companies amid a housing affordability crisis especially in popular urban areas. The ministry ordered Airbnb in May to remove around 65,000 listings for similar violations. The government's consumer rights minister emphasized the impact on families struggling with housing. Airbnb said it plans to challenge the fine in court.
Roomba maker iRobot has filed for Chapter 11 bankruptcy protection, but says that it doesn’t expect any disruptions to devices as the more than 30-year-old company is taken private under a restructuring process. iRobot said that it is being acquired by Picea through a court-supervised process. Picea is the company's primary contract manufacturer. The Bedford, Massachusetts-based anticipates completing the prepackaged chapter 11 process by February.
Serbia’s prosecutor for organized crime has charged a government minister and three others with abuse of position and falsifying of documents related to a luxury real estate project linked to U.S. President Donald Trump’s son-in-law Jared Kushner. The charges came on Monday. The investigation centers on a controversy over a a bombed-out military complex in central Belgrade that was a protected cultural heritage zone but that is facing redevelopment as a luxury compound by a company linked to Kushner. The $500 million proposal to build a high-rise hotel, offices and shops at the site has met fierce opposition from experts at home and abroad. Selakovic and others allegedly illegally lifted the protection status for the site by falsifying documentation.
Wealthfront’s CFO Alan Iberman talks the $2.05B IPO and the major moment for robo banking as the company bets on AI, automation, and “self-driving money."
