Wall Street: Uber Technologies stock surges over 9% after Q2 results

Uber Technologies Inc. stock surged more than 9 per cent on Tuesday after the company reported better than expected results in the second quarter.

At 12:47 p.m. EDT, Uber Technologies stock was at $64.15, higher $5.66 or 9.69 per cent.

Uber's second quarter results beat Wall Street estimates on the back of steady demand for its ride-sharing and food-delivery services.

Its revenue rose 16 per cent to $10.70 billion in the second quarter ended June 30, while gross bookings surged 19 per cent to $39.95 billion. Its profit stood at 47 cents per share.

Its revenue from ride-sharing segment rose 25 per cent to $6.13 billion.

“Mobility had a standout second quarter ... growth was consistent across use cases and geographic strength was led by LatAm and APAC, in particular Brazil, Australia and India,” Uber CEO Dara Khosrowshahi said.

Uber said trips by self-driving vehicles on its platform were six times higher in the June quarter, helped by partnerships with companies including Alphabet's Waymo and startup Waabi.

“While there have been some concerns about consumer spend on restaurants and delivery, we are not seeing any impact today,” Khosrowshahi said, adding that a greater push on groceries through expanded partnerships with Instacart and Costco Wholesale was boosting deliveries.

For the third quarter, Uber forecast gross bookings between $40.25 billion and $41.75 billion, and adjusted core earnings between $1.58 billion and $1.68 billion.

US stocks

US stock indices edged higher on Tuesday after a rout in global markets on Monday.

At 11:24 a.m. ET, the Dow Jones Industrial Average rose 317.78 points, or 0.82 per cent, to 39,021.05, the S&P 500 gained 69.49 points, or 1.34 per cent, to 5,255.82 and the Nasdaq Composite gained 229.45 points, or 1.42 per cent, to 16,429.53.

Khosrowshahi said he expects there will be many autonomous vehicle providers and is “highly confident” that Uber can work with many of them as partners in the coming weeks and months.

Uber has also made progress in adding subscribers to its Uber One membership program by offering discounts to college students since May.