Why Uber Stock Tumbled 51% in the First Half of the Year
Uber Technologies (NYSE: UBER) was one of many unprofitable growth stocks to take a sharp dive this year. Though the company's results weren't bad as it benefited from the economic reopening, Uber has historically operated at a deep loss, and market sentiment has shifted against the "market share first, profits later" business strategy. Uber has responded to investor demand by scaling back spending and issuing a hiring freeze, but the stock market sell-off has nonetheless hit it hard.
The ridesharing giant has also struggled with labor shortages as riders have complained of rising prices, calling into question the durability of the app-based business model.
According to data from S&P Global Market Intelligence, the stock fell 51% in the first half of 2022. As you can see from the chart below, the stock fell consistently over the year, falling faster than the S&P 500.
Source Fool.com
