London Daily

Focus on the big picture.
Friday, Oct 03, 2025

Uber stock is in crisis - here's the biggest problems right now

It’s getting straight up embarrassing for Uber CEO Dara Khosrowshahi. And if he doesn’t soften up his approach with Wall Street and communicate better to that influential cohort - as rival Lyft has done in recent quarters - it could be investors that incur further pain in a stock that has gone in the toilet since an overhyped IPO back in May.

Uber’s stock (UBER) crashed close to 9% on Tuesday following the ride-hailing giant’s decidedly mixed third quarter. The stock has plunged 38% from Uber’s May 10 IPO price. While it was borderline refreshing (we are searching for straws here...) that Uber’s massive loss per share didn’t completely whiff Wall Street forecasts, it was hard to overlook the inherent ugliness of the quarter.

“Investors have a lot of questions around profitability,” Wedbush analyst Ygal Arounian said on Yahoo Finance’s The First Trade.

Khosrowshahi did his best impression (finally) of Lyft’s CEO Logan Green and outlined a path to profitability on the earnings call. The company expects to be profitable on an adjusted EBITDA basis in the full fiscal year 2021. If Uber would have did this months ago, the market would have probably embraced the long-awaited details on profits.

Arounian says Khosrowshahi and his team could do a better job holding the hands of Wall Street during this phase of growth and losses. The fact Uber only now offered more insightful bottom line guidance underscores Khosrowshahi’s lack of understanding on what investors need to hear from him.

This time around the market ignored the profit guidance, underscoring the growing lack of confidence in Uber’s management and sent the stock further into crisis mode. How else could one view the situation at Uber? You have a highly public CEO in Khosrowshahi telling the masses that profits are possible soon - an attempt to address one of the biggest mysteries in the tech space right now - and yet the stock is dumped.

Come on.


What else analysts are worried about on Uber

Besides Mr. Market tuning out Khosrowshahi’s promises, Wall Street remains concerned on several aspects of Uber based on Yahoo Finance’s conversations.

They include:

Lyft continues to do a better job communicating their vision to the Street. Lyft also gets higher marks relative to Uber on delivering up to their promises.

The outlook for Uber Eats over the next six months stinks. Not only is the business already losing large sums of money, but the losses could accelerate in the medium-term as struggling Grubhub dumps massive discounts into the market to drum up business (as they have recently signaled).

Uber’s IPO lockup occurs on Wednesday. Analysts estimate about 1.7 billion in shares will become available for sale. Given the terrible performance of Uber and tepid outlook, a selling tsunami could transpire.


The bottom line

At this point, it’s wildly unclear what puts the bottom in Uber’s stock once and for all. Khosrowshahi took a shot at doing it with his long-awaited profit shout out. Perhaps early investors need to completely dump Uber - now that they will be able to -as to remove the lockup worries overhanging the stock. But hell, even that could spook other Uber investors - if early investors dump the stock, it could be a no confidence vote in management’s timeline on profitability.

Newsletter

Related Articles

0:00
0:00
Close
Trump Administration Launches “TrumpRx” Plan to Enable Direct Drug Sales at Deep Discounts
Trump Announces Intention to Impose 100 Percent Tariff on Foreign-Made Films
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Singapore and Hong Kong Vie to Dominate Asia’s Rising Gold Trade
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Manhattan Sees Surge in Office-to-Housing Conversions, Highest Since 2008
Switzerland and U.S. Issue Joint Assurance Against Currency Manipulation
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Thomas Jacob Sanford Named as Suspect in Deadly Michigan Church Shooting and Arson
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
New York Man Arrested After On-Air Confession to 2017 Parents’ Murders
U.S. Defense Chief Orders Sudden Summit of Hundreds of Generals and Admirals
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
Trump Claims FBI Planted 274 Agents at Capitol Riot, Citing Unverified Reports
India: Internet Suspended in Bareilly Amid Communal Clashes Between Muslims and Hindus
Supreme Court Extends Freeze on Nearly $5 Billion in U.S. Foreign Aid at Trump’s Request
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
China Deploys 2,000 Workers to Spain to Build Major EV Battery Factory, Raising European Dependence
Speed Takes Over: How Drive-Through Coffee Chains Are Rewriting U.S. Coffee Culture
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Ringo Starr Champions Enduring Beatles Legacy While Debuting Las Vegas Art Show
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
FBI Removes Agents Who Kneeled at 2020 Protest, Citing Breach of Professional Conduct
Trump Alleges ‘Triple Sabotage’ at United Nations After Escalator and Teleprompter Failures
Shock in France: 5 Years in Prison for Former President Nicolas Sarkozy
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
BNP Paribas Abandons Ban on 'Controversial Weapons' Financing Amid Europe’s Defence Push
Typhoon Ragasa Leaves Trail of Destruction Across East Asia Before Making Landfall in China
The Personality Rights Challenge in India’s AI Era
Big Banks Rebuild in Hong Kong as Deal Volume Surges
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Arnault Denounces Proposed Wealth Tax as Threat to French Economy
Study Finds No Safe Level of Alcohol for Dementia Risk
Denmark Investigates Drone Incursion, Does Not Rule Out Russian Involvement
Lilly CEO Warns UK Is ‘Worst Country in Europe’ for Drug Prices, Pulls Back Investment
Nigel Farage Emerges as Central Force in British Politics with Reform UK Surge
Disney Reinstates ‘Jimmy Kimmel Live!’ after Six-Day Suspension over Charlie Kirk Comments
U.S. Prosecutors Move to Break Up Google’s Advertising Monopoly
Nvidia Pledges Up to $100 Billion Investment in OpenAI to Power Massive AI Data Center Build-Out
U.S. Signals ‘Large and Forceful’ Support for Argentina Amid Market Turmoil
Nvidia and Abu Dhabi’s TII Launch First AI-&-Robotics Lab in the Middle East
Vietnam Faces Up to $25 Billion Export Loss as U.S. Tariffs Bite
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Indonesia Court Upholds Military Law Amid Concerns Over Expanded Civilian Role
Larry Ellison, Michael Dell and Rupert Murdoch Join Trump-Backed Bid to Take Over TikTok
Trump and Musk Reunite Publicly for First Time Since Fallout at Kirk Memorial
Vietnam Closes 86 Million Untouched Bank Accounts Over Biometric ID Rules
×