Is Uber Technologies Stock a Buy?

Uber Technologies' (NYSE: UBER) stock surged 11% on Sept. 21 after the ride-hailing and food delivery company updated its guidance for the second half of 2021.

For the third quarter, Uber narrowed its bookings guidance and boosted its adjusted EBITDA guidance. It now expects to generate $22.8 to $23.2 billion in gross bookings, compared to its prior forecast of $22 to $24 billion. It expects its adjusted EBITDA to come in between a loss of $25 million and a profit of $25 million, which is much higher than its previous forecast for an adjusted EBITDA loss of $100 million.

For the fourth quarter, Uber expects to generate an adjusted EBITDA of $0 to $100 million, which would represent Uber's first quarterly profit on an adjusted EBITDA basis. CFO Nelson Chai said Uber's adjusted EBITDA turned positive in July and August, and should improve sequentially in the fourth quarter.

Continue reading

Source Fool.com