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Shares of rideshare giant Uber Technologies UBER rallied on Tuesday after the company updated its third-quarter outlook.
Uber now expects gross bookings in the range of $22.3 billion to $23.2 billion compared to the prior forecast of $22 billion to $24 billion. Adjusted EBITDA was revised to a range of negative $25 million to positive $25 million, marking a dramatic upwards revision from previous estimates of a loss of $100 million.
Uber cites strong improvements in both its Mobility and Delivery segments, specifically surges in online food ordering and a recovery in ride bookings from the lows of the pandemic.
The company’s path to profitability is coming sooner than expected, hence today’s big share gains, and will mark an important milestone for Uber. Last month, rival Lyft LYFT posted an adjusted quarterly profit three months ahead of their target goal. Both companies’ profitability progress shows that rides are finally returning to pre-COVID levels.
UBER closed up 11.5% while LFYT stock gained 6.5% as well.
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