Uber Earnings: Bookings Growth Dovetails With Improved Profitability in the Second Quarter

We maintain our $80 fair value estimate for narrow-moat Uber after the firm reported better-than-expected second-quarter earnings. Investors have been increasingly skittish about Uber shares as the company faces a tough macro environment, with the most recent US jobs report fueling talks of a recession that would affect Uber’s customer demand. Alongside macro issues, investors also appear concerned about the impact of autonomous vehicle taxis and how their entrance into the ride-hailing business would affect demand for Uber’s mobility solutions. Against this bearish backdrop, we were impressed that the firm continued to execute well on its business model with strong year-over-year growth in bookings and solid profitability.