Uber releases hotly anticipated second quarter earnings shortly. Here’s a re-cap of what to look for
Our full preview for Uber’s second quarter earnings was published on Wednesday. Read it here.
Key Financial points to Watch
Key Q2 Metrics to Watch
Core platform gross bookings are forecast to rise to $15.53bn in Q2 vs. $14.52bn in Q1Growth is forecast to fall to 32% from 34% in Q1Q2 2018 and Q1 2018 growth was 48% and 56%
Other key points to watch
Uber may confirm that it is selling Uber Eats IndiaIt may comment on Takeaway.com’s £5bn agreement to buy Just Eat (LON:)
Possible share price reaction
Shares remain below IPO priceThe stock jumped as much as 7.5% on Thursday after Lyft’s better than expected earnings earlier this weekAn upside surprise in Uber’s results could deliver a positive-shock to sharesMissing forecasts, or just meeting expectations could send the shares lowerOptions pricing shows a high put/call ratio and skew. These point to bearish sentiment19% of the stock is held by short sellers betting the price will decline
Chart thoughts
Uber is in an upswing from its post-IPO gap fill. There are decent technical signs of a change in sentimentDownward velocity that followed a rejected attempt to approach 28th June’s primary cycle high has dissipatedThe stock escaped a falling channel this weekA fresh cycle low was established at $38.20 on Wednesday; closely echoing several lows nearby$39.24 may be significant support as it was the top price on Uber’s first post-IPO Monday, 13th May. It was also the bottom of the gap after Uber’s 10th May debutThe 8th July swing low of $42.75 established a floor for most of that month. It’s now resistanceAdded significance (‘confluence’) comes from proximity to 61.8% of the 29th July-7th AugustSince Uber has settled at resistance just ahead of earnings, current levels are a rough marker. They can define sentiment: Above here signals well-received figures; below would be negativeIf the stock escapes its 26th June bearish outside day range–even betterThe bottom of that range—$42.36—adds supportFailure to break above current resistance will return Uber to a downward courseIn that case, assuming no help from the 38.2% Fibonacci, expect another visit to $39.24; perhaps $38.32
Uber Technologies (NYSE:) Inc. – 120 minutes [08/08/2019 19:52:03
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