Uber Technologies’ (UBER) underlying business continues to be “healthy,” even as the ride-hailing company posted mixed Q1 financial results, Wedbush Securities said Wednesday.
The company’s Q1 net loss widened year-over-year to $0.32 per share from $0.08 per share, while revenue grew 15% to $10.13 billion. Analysts polled by Capital IQ expected EPS of $0.22 on revenue of $10.09 billion.
The company’s shares were down over 7% in recent trading.
“We think investor expectations have gotten ahead of the stock following the company’s analyst day in mid-February,” Wedbush analysts, including Daniel Ives, said in a note. Markets and investors likely also overlooked recent currency headwinds, they said.
Wedbush reiterated its outperform rating on the Uber stock, saying the company continues to be “the dominant global mobility and delivery platform with multiple drivers of long-term growth.”