Uber (UBER) stock slipped in early trade after investors soured on the ride-hailing giant’s profit outlook, even with the CEO’s bullish comments on the autonomous opportunity.
Uber forecast first quarter adjusted earnings per share (EPS) in a range of $0.65 to $0.72, missing estimates of $0.77, as compiled by Bloomberg. Adjusted EBITDA for the quarter of $2.37 billion to $2.47 billion also missed the midpoint of analyst estimates.
In addition, Uber named Balaji Krishnamurthy as its next CFO, replacing Prashanth Mahendra-Rajah, who is stepping down on Feb. 16.
Read more about Uber’s stock moves and today’s market action.
Uber stock fell as much as 9% in premarket trading but rebounded shortly thereafter following positive comments from CEO Dara Khosrowshahi on the earnings call. Shares opened down over 5% in early trade.
“Having learned from our AV [autonomous vehicle] deployments thus far, we are even more convinced that AVs will unlock a multitrillion-dollar opportunity for Uber,” Khosrowshahi said.
Uber announced new upcoming service markets, including Houston, Hong Kong, Madrid, and Zurich, though it did not provide a specific timeline. Uber previously said it expects to make robotaxis available alongside regular human drivers in more than 10 markets by the end of 2026.
The company recently partnered with Lucid (LCID) to build out a robotaxi fleet with the automaker, powered by autonomous tech firm Nuru’s (NURO.PVT) software. Uber also partnered with Joby Aviation’s (JOBY) Blade to bring its helicopter service to its platform. Eventually, electric vertical takeoff and landing (eVTOL) vehicles will be added to the mix.
Uber currently works with Alphabet’s (GOOG, GOOGL) Waymo for booking robotaxis in Austin, Texas, and Atlanta.
Khosrowshahi said a “hybrid” network like Uber’s, combining robotaxis with human-driven vehicles, was the best option for most markets, given the “highly variable” rideshare demand in most cities. The CEO’s comments and descriptions of certain AV “misconceptions” were seen as critiques of Waymo’s service with its fixed number of vehicles.
Another advantage of the Uber network is its other offerings, such as delivery via Uber Eats and freight, which allow for higher usage rates of its vehicles.
“Having delivery and freight as part of a logistics system gives us the ability to use them at higher utilization,” Khosrowshahi said regarding robotaxis, claiming it as a “structural advantage” that no one else has.
