Uber Technologies (UBER) is an American ride-hailing service provider with operations in nearly 1,000 cities worldwide.
And while the company’s most recent quarterly results were more positive than expected, UBER continues to operate at a massive loss.
In the second quarter, UBER reported a loss per share of $0.58. The company also said its earnings before interest, taxes, depreciation, and amortization were a loss of $509 million, significantly higher than analysts’ projected loss of $321.7 million.
This trend is unlikely to end anytime soon, as UBER and the broader gig economy face major headwinds.
Even with an improvement in the number of consumers using its services, UBER is struggling to bring back workers. Because of this, the company has increased payouts for drivers. UBER also went as far as to offer bonuses to those that refer new drivers.
This means UBER’s costs are rising as it continues to burn through cash…
But that isn’t even the biggest issue for the company. Countries all around the world are altering gig-economy laws. In the U.K. and Spain, for example, court rulings said ride-hailing businesses must provide workers with employee benefits.
And California’s Proposition 22 – which allows UBER and other companies to classify their workers as independent contractors without benefits – is receiving major pushback. A judge recently ruled that Proposition 22 violated the state’s laws and removed the opportunity for workers to receive basic compensation and benefits.
And as these headwinds grow, it’ll further weigh on UBER’s efforts to achieve profitability and lower its monumental expenses.
Whitney Tilson: Here’s My #1 TaaS Pick (Free)
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While it’s getting very little attention in the mainstream press…
Wall Street legend Whitney Tilson, says “an absolute stock market frenzy” is erupting in one small corner of the new technology space…
- An Ohio company working on this tech soared roughly 500% in two months.
- A California company considered the leader in this space is up as much as 360% since the start of this year.
- A New York company entering this space shot up 71% in just two days.
- A Phoenix company working on this breakthrough recently shot up 104% in a single day.
- And a Vancouver company shot up as much as a whopping 1,000% since the start of 2020.
And now…
Tilson says the returns in this space are only going to escalate from here, as it enters the next phase.
Tilson – a former hedge fund manager who’s twice appeared on 60 Minutes to break big financial stories – says…
“The best thing you can do as an investor is position yourself in front of a massive, inevitable, and booming trend… and that’s what we’re looking at right here.”
That’s why Whitney Tilson and his research team have put together a full analysis, which explains everything you need to know about this new, skyrocketing tech sector.
His analysis also includes the stock name and ticker symbol of their favorite stock pick in this space.
You can access their recent analysis, including the charts, photos, and videos that accompany it, on the Empire Financial Research website, totally free of charge, right here.
