Ride-hailing service provider Uber Technologies (UBER) will release its Q4 financials on February 5. Uber stock has gained over 15% over the past six months, fueled by strategic partnerships in autonomous vehicle technology, including its collaboration with Nvidia (NVDA), consistent revenue growth, and strong financial performance. However, Wall Street analysts expect the company to report earnings of $1.13 per share, representing a 24% decrease year-over-year.
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Meanwhile, revenues are expected to grow by 18% from the year-ago quarter to $9.94 billion, according to data from the TipRanks Forecast page. Notably, Uber missed EPS estimates only twice out of the last nine quarters.
Analysts’ Views on UBER Stock Ahead of Q4 Results
Ahead of Q4 results, the majority of analysts remain bullish on Uber stock.
One such analyst is Jason Helfstein of Oppenheimer, who has reiterated an Outperform rating on the stock. Helfstein views the current investor concerns about Robotaxi as a buying opportunity. He believes Robotaxi could expand Uber’s market potential if Tesla (TSLA) doesn’t dominate the sector. Further, Helfstein anticipates strong Q4 results, especially in Mobility, which should drive Uber’s stock higher in the near term.
Similarly, analyst Justin Post of Bank of America Securities has kept a Buy rating on Uber’s stock. He believes Uber’s strategic partnerships in the Autonomous Vehicles (AV) sector will start to show results by 2025, along with potential regulatory changes that could help the company. Also, Uber’s growth in new business areas and improving profit margins add to the positive outlook.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 8.75% move in either direction.
Is Uber a Buy or Sell Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Uber stock based on 27 Buys and two Holds assigned in the past three months, as indicated by the graphic below. The average UBER price target of $92 per share implies 36.72% upside potential.
