Uber stock plunges after whopping $5.2B quarterly loss

Uber shares plunged 6.3 percent in late trading to $40.27, after the ride-hailing giant reported a disappointing quarter capped by a record $5.2 billion loss.

Uber said it lost a whopping $5.2 billion, or $4.72 a share, in the second-quarter on revenue of $3.17 billion. Wall Street had been expecting a loss of $3.12 a share on revenue of $3.36 billion.

Investors sent the stock down in an after-hours selling spree that more than reversed the stock’s 8.2 percent gain during regular trading to close Thursday at $42.97 per share.

Analysts attributed the stock’s daytime run up to a halo effect caused by Lyft’s second-quarter report on Wednesday, which surprised Wall Street with higher-than-expected revenue and lower-than-expected losses.

Lyft also cheered investors of both companies by saying its price war with Uber was easing. The Uber rival’s stock climbed 5.8 percent over two days.

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Uber, which went public on May 9 at a price of $45 per share, blamed $3.9 billion of the quarter’s $5.2 billion loss on stock-based compensation costs. Those consisted of payouts to workers and shareholders after Uber’s IPO and were recorded as non-cash expenses on the company’s second-quarter statement.

Despite Wall Street panning the result, Uber CEO Dara Khosrowshahi insisted they were “strong“ in a conference call with analysts.

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He said total trips in the quarter were up 35 percent, and gross bookings, or the amount Uber collects before paying drivers, advanced 37 percent.

The $12.19 billion in gross bookings produced by Uber’s core ride-hailing business beat estimates, but the $3.39 billion in gross bookings recorded for the newer Uber Eats delivery fell short.

Khosrowshahi said he doesn’t expect near-term profitability for Uber Eats because it’s in a high-growth business where competition “continues to attract a lot of capital.”