Buy, Sell or Hold UBER Stock? Key Insights Ahead of Q2 Earnings

Uber Technologies UBER is slated to release second-quarter 2025 results on Aug. 6, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at 62 cents per share and $12.46 billion, respectively.The earnings estimate for the to-be-reported quarter has improved by 1.64% over the past 60 days.  The Zacks Consensus Estimate for quarterly revenues suggests a 16.41% uptick from the year-ago quarter’s figure. The Zacks Consensus Estimate for quarterly earnings suggests a 31.91% uptick from the year-ago quarter’s figure.Image Source: Zacks Investment ResearchFor 2025, the Zacks Consensus Estimate for UBER’s revenues is pegged at $50.74 billion, implying an expansion of 15.37% year over year. The consensus mark for 2025 EPS is pegged at $2.9, implying a decline of 36.4% on a year-over-year basis.In the trailing four quarters, this company surpassed EPS estimates on each occasion, the average beat being 212.3%.Uber Technologies Price and EPS Surprise Uber Technologies, price-eps-surprise | Uber Technologies, QuoteQ2 Earnings Whispers for UBER StockOur proven model predicts an earnings beat for UBER this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.UBER has an Earnings ESP of +0.20% and a Zacks Rank #3.  You can see the complete list of today’s Zacks #1 Rank stocks here.Factors Shaping UBER’s Q2 ResultsDespite currency-related headwinds, Uber’s gross bookings are likely to have been impressive in the June quarter. Uber expects gross bookings in the $45.75-$47.25 billion band, indicating growth of 16-20% on a constant-currency basis from second-quarter 2024 actuals.The guidance includes an estimated 1.5 percentage point impact of currency headwind (including a roughly 3 percentage point currency headwind to Mobility). Our estimate for second-quarter 2025 gross bookings is pegged at $45.7 billion. In the second quarter, adjusted EBITDA is estimated to be in the range of $2.02 billion to $2.12 billion, suggesting year-over-year growth of 29% to 35%.However, tariff-related headwinds are likely to hurt results. We believe that more than the financial numbers, it is the guidance that investors will watch more closely. Uber is focusing on autonomous vehicles to drive growth. The company is expected to provide updates on the same on the second-quarter conference call. UBER’s Price Performance & ValuationUber has navigated the recent tariff-induced stock market volatility well, registering a 45.5% year-to-date gain, while the Zacks Internet-Services industry is up in low single-digits. The S&P 500 index has risen 7.4%. Uber’s main competitor, Lyft LYFT has gained only 9% in the same timeframe. Another industry player, DoorDash DASH, has performed better than Uber year to date, gaining 48.6%. YTD Price Performance ComparisonImage Source: Zacks Investment ResearchFrom a valuation perspective, Uber is trading at an expensive level. Going by its price/earnings ratio, the company is trading at a forward earnings multiple of 26.93, above the industry’s 19.27. The company has a Value Score of C. Meanwhile, Lyft trades at a forward earnings multiple of 11.34, whereas DoorDash’s P/E sits at 84.74. Lyft and DoorDash have a Value Score of C and F, respectively.Image Source: Zacks Investment ResearchHow to Play Uber Pre-Q2 EarningsAgreed that Uber’s valuation is anything but tempting. The company’s high debt levels and concerns pertaining to currency represent further headwinds. However, not all is gloom and doom for this dominant ride-sharing company.The company’s diversification efforts and shareholder-friendly approach are praiseworthy. Uber’s large size (market capitalization of $183.5 billion) positions it well to overcome turbulent times, such as the current one. Diversification is imperative for big companies to reduce risks, and Uber has excelled in this area. The company has engaged in numerous acquisitions, geographic and product diversifications and innovations. Uber’s endeavors to expand into international markets are commendable and provide it with the benefits of geographical diversification. Prudent investments enable Uber to extend its services and solidify its comprehensive offerings. Moreover, Uber aims to gain a stronghold in the highly promising robotaxi market through strategic partnerships. To this end, the company has partnerships with many companies. By adopting this approach, Uber has avoided the massive R&D costs associated with developing autonomous systems independently.So, all in all, it is worth holding on to Uber stock now. However, investing ahead of its upcoming results doesn’t seem like a good idea. It’s better to wait for management’s commentary on tariffs and updated guidance to see the potential impact. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lyft, Inc. (LYFT): Free Stock Analysis Report Uber Technologies, Inc. (UBER): Free Stock Analysis Report DoorDash, Inc. (DASH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks