UBER - Embedded Expectations Analysis - 2020 08 10
Uber Technologies, Inc. (UBER:USA) currently trades at a premium to UAFRS-based (Uniform) assets, with a 4.4x Uniform P/B. At these levels, the market has expectations for profitability to inflect positively, but management appears concerned about their data, growth, and the profitability of new projectsSpecifically, management is confident that their Rides business declined so much that data is sparse. Moreover, they may be concerned about declines in Rides trips and gross bookings, global food industry business consolidation, and their headcount reductions. In addition, they may lack confidence in their ability to sustain Eats gross bookings growth, achieve their long-term 15% take rate target, and continue to improve their cost structure. Furthermore, they may be exaggerating the ability of their ATG investments to become profitable, their Eats existing customer engagement, and the technology, logistics, and local know-how necessary to operate at their scale on a global basis. Finally, they may lack confidence in their ability to sustain Q2 growth rate improvements and promote social distancing through their app
Uber Technologies provides ride hailing services. The company develops application for road transportation, navigation, ride sharing, and payment processing solutions. The company serves customers in the United States and Canada, Latin America, Europe, Middle East, and Asia Pacific markets, excluding its discontinued China operations.
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