"The sell-off began on February 4, when Uber reported Q4 2025 earnings that shocked investors. The company posted adjusted EPS of $0.71, missing the $0.7788 consensus. This broke a seven-quarter streak of beats and marked the worst surprise since Q1 2024. Revenue of $14.37 billion came in light, though the company delivered 20% year-over-year growth. Arete Research lowered its price target from $125 to $120, and Citigroup trimmed its target as well."
"The consensus now sits at $105.26, implying 50% upside from current levels but down from prior expectations. Here's the bottom line: 30 days ago, Wall Street expected Uber to deliver $4.15 in adjusted EPS in 2026. That number is now $3.30. That's the key reason why shares have fallen so much this year. Expectations for Uber's profitability this year have dropped dramatically."
"On February 13, a federal jury in Arizona ordered Uber to pay $8.5 million to a woman sexually assaulted by a driver. This was the first bellwether trial in multidistrict litigation concerning driver assaults. While Uber called it a partial victory, the specific jury findings are expected to significantly benefit plaintiffs' leverage in thousands of remaining cases. Reddit sentiment turned sharply bearish early in the week, with the post "Uber found liable in sex assault case" gaining 315 upvotes and 41 comments"
Uber stock slid 6.41% this week, closing at $69.98 and extending a brutal start to 2026 with year-to-date losses of 14.36% while the broader market sits flat. Q4 2025 adjusted EPS of $0.71 missed the $0.7788 consensus, breaking a seven-quarter streak of beats; revenue grew 20% year-over-year to $14.37 billion but came in light. Analysts trimmed price targets and consensus 2026 adjusted EPS fell from $4.15 to $3.30, reducing valuation expectations. A federal jury ordered an $8.5 million award in a bellwether sexual-assault trial, increasing liability concerns, and Reddit sentiment turned bearish. Autonomous vehicle expansion is noted as potential upside.
Read at 24/7 Wall St.
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