Uber Technologies' (NYSE: UBER) stock price surged 12% on May 2 after the transportation and food delivery giant posted its first-quarter report. Revenue rose 29% to $8.8 billion and exceeded analysts' expectations by $90 million.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) surged 353% to $761 million, marking Uber's seventh-consecutive quarter of profitability on an adjusted EBITDA basis. On a generally accepted accounting principles (GAAP) basis, the company also narrowed its net loss from $5.9 billion to $157 million, or $0.08 per share, which cleared the consensus forecast by $0.01.

Those headline numbers support the bullish thesis for Uber, but should investors chase its post-earnings rally? Let's decide by reviewing the finer details of the company's first-quarter earnings report, its near-term challenges, and its valuation.

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Source Fool.com