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Uber’s Excellent Week Translates Into Stock Price Rally

Uber has underperformed since the start of the year, with the numerous challenges in Europe affecting its stock price.

Uber CEO Says Company Recorded its Best-Ever Week

Uber CEO Dara Khosrowshahi revealed earlier today that the company just had its best week ever in terms of overall gross bookings. The ridesharing company has underperformed since the start of the year but is now performing excellently.

Khosrowshahi said, “Our overall mobility business continues to get closer to pre-pandemic levels. We’re starting to inch up to call it like the 90% mark, we’re not quite there. Last week was our best week, you know, post-pandemic.”

Gross bookings are Uber’s combined bookings for its ridesharing and delivery businesses. The CEO said the ridesharing business is recovering slowly as economies resume normal operations since the pandemic began.

The CEO also revealed that Uber is looking to sell its stakes in what it considers non-strategic investments in other companies. The company is set to sell its stakes in entities such as Chinese ride-hailing company Didi Global.

UBER Rallies Following CEO’s Statement

Rideshare companies and other travel stocks have been negatively affected by the pandemic, with the demand for their services declining during that period. However, as vaccines and restrictions eased, consumers are traveling again, and ridesharing services are now in demand.

Uber reported 1.64 billion on its platform in the current quarter, up by 9% from the previous quarter and 39% from the fourth quarter of last year. The comment by the CEO sent UBER’s price soaring higher.

At press time, UBER is trading at $37.51, up by more than 5% since the US market opened earlier today. However, year-to-date, the stock has underperformed, down by more than 26% over the past twelve months.

In the past month, Uber has underperformed due to its regulatory troubles in Brussels, the Belgian capital. The ridesharing platform no longer operates in Brussels following the latest court ruling.

This article was originally posted on FX Empire


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