- Uber posted a loss of over a billion dollars in the third quarter.
- The expiry of the employee lock-up period is just hours away fueling fears of an impending stock sell-off.
- Ride-hailing giant expects to become profitable in 24 months, the CEO says.
Despite beating earnings estimates in its third-quarter results, shares of Uber Technologies Inc (NYSE: UBER) are taking a beating ahead of the opening bell. The plunge also comes a day ahead of the expiry of the employee lock-up period.
After closing Monday’s session at $31.08, the ride-hailing operator’s stock has fallen by nearly 6.27% to hit $29.13.
Uber stock price chart | Source: Yahoo Finance
Since the ride-hailing operator got listed, the stock has now lost over 33% of its value. Uber’s shares are, however, currently just a little over 3% above the record low reached in early October.
Better but still in the red
In the third-quarter results, Uber posted revenues amounting to $3.813 billion. Year-on-year this was an increase of 30% from 2018. This beat estimates of $3.69 billion that analysts had been expecting.
Uber also reported a loss of $1.162 billion. On a per-share basis, this was a loss of $0.68 and better than the $0.81 that analysts had been expecting. The Q3 loss was lower than the second-quarter loss of $5.2 billion. However, it was larger than the loss of $986 million that was reported in a similar quarter last year. For the full year, Uber is expecting a loss of $2.8 billion to $2.9 billion.
Total costs and expenses for the ride-hailing firm on the other hand increase by 33% year-on-year from $3.707 billion to $4.919 billion.