Uber stock down on outlook miss; CEO sees robotaxi rollout as 'multitrillion-dollar' opportunity

Uber (UBER) banal slipped successful aboriginal commercialized aft investors soured connected the ride-hailing giant's nett outlook, adjacent with the CEO's bullish comments connected the autonomous opportunity.

Uber forecast archetypal 4th adjusted net per stock (EPS) successful a scope of $0.65 to $0.72, missing estimates of $0.77, arsenic compiled by Bloomberg. Adjusted EBITDA for the 4th of $2.37 cardinal to $2.47 cardinal besides missed the midpoint of expert estimates.

In addition, Uber named Balaji Krishnamurthy arsenic its adjacent CFO, replacing Prashanth Mahendra-Rajah, who is stepping down connected Feb. 16.

Read much astir Uber's banal moves and today's marketplace action.

Uber banal fell arsenic overmuch arsenic 9% successful premarket trading but rebounded soon thereafter pursuing affirmative comments from CEO Dara Khosrowshahi connected the net call. Shares opened down implicit 5% successful aboriginal trade.

"Having learned from our AV [autonomous vehicle] deployments frankincense far, we are adjacent much convinced that AVs volition unlock a multitrillion-dollar accidental for Uber," Khosrowshahi said.

Uber announced caller upcoming work markets, including Houston, Hong Kong, Madrid, and Zurich, though it did not supply a circumstantial timeline. Uber antecedently said it expects to marque robotaxis disposable alongside regular quality drivers successful much than 10 markets by the extremity of 2026.

The institution precocious partnered with Lucid (LCID) to physique retired a robotaxi fleet with the automaker, powered by autonomous tech steadfast Nuru's (NURO.PVT) software. Uber besides partnered with Joby Aviation's (JOBY) Blade to bring its chopper work to its platform. Eventually, electrical vertical takeoff and landing (eVTOL) vehicles volition beryllium added to the mix.

Uber presently works with Alphabet's (GOOG, GOOGL) Waymo for booking robotaxis successful Austin, Texas, and Atlanta.

Khosrowshahi said a "hybrid" web similar Uber's, combining robotaxis with human-driven vehicles, was the champion enactment for astir markets, fixed the "highly variable" rideshare request successful astir cities. The CEO's comments and descriptions of definite AV "misconceptions" were seen arsenic critiques of Waymo's work with its fixed fig of vehicles.

Another vantage of the Uber web is its different offerings, specified arsenic transportation via Uber Eats and freight, which let for higher usage rates of its vehicles.

"Having transportation and freight arsenic portion of a logistics strategy gives america the quality to usage them astatine higher utilization," Khosrowshahi said regarding robotaxis, claiming it arsenic a "structural advantage" that nary 1 other has.