Uber Technologies Inc. reported earnings after the close on Monday and missed estimates for active users. The company earned a bit more revenue than expected, but given that it still loses money every quarter, it’s the number of riders that investors watch.
The news sent shares down 5% in extended trading.
Uber said its monthly active platform users rose to 103 million globally in the third quarter, from 82 million a year earlier, but fell short of analysts’ estimates of 105.5 million, according to IBES data from Refinitiv.
Total revenue rose nearly 30% to $3.81 billion, beating estimates of $3.69 billion, but the company still lost more than $1 billion during the quarter.
Things might get worse on Wednesday when the lock up on most of the company’s shares will expire, allowing insiders to sell their shares whenever they want.
The end of the lock up could lead insiders to dump millions of shares on the market, hoping to get out before the stock goes lower, but causing the stock price to fall in the process.
If you don’t use Uber, consider taking a ride. They sure could use the cash.
But you might stay away from the stock for a while.