With earnings season still bustling, ridesharing company Uber is set to release its earnings Thursday. Uber investors will get a better picture of how the coronavirus pandemic, which has left many Americans sheltering in place, has affected Uber’s overall business.
The rideshare giant is scheduled to report its June quarter earnings on Thursday after the close of trading, when investors can anticipate a categorization of usage trends in Uber’s core ridesharing segment, in Uber Eats, and in newer areas of competition from the company such as grocery delivery. Uber’s stock closed up 1.6% higher on Wednesday to $33.20 ahead of earnings. Meanwhile, the Renaissance IPO ETF (IPO), which contains Uber, is down over 1.5% Thursday as of 1 PM EST.
On average, analysts are projecting a non-GAAP loss of 65 cents per share and revenue of $2.1 billion for Uber’s second quarter.
In July, Uber purchased U.S. based courier service Postmates for $2.65 billion in stock. The company described the buyout as a complement to its expanding efforts in “the delivery of groceries, essentials, and other goods.” Today, investors await announcements from Uber management about what the deal signifies, and how Uber hopes to take advantage of grocery deliveries as its rideshare business suffers due to the pandemic.
Excitement over the earnings news has some Options traders betting that the rideshare company’s stock will receive a boost once it reports earnings Thursday afternoon.
Uber’s stock has climbed over 13% in the last week as sentiment around the company improves. There is now substantial bullish interest in the options market, suggesting that the stock is readying for an even more significant breakout.
Many of the bullish bets made during Wednesday’s session were based on Friday’s weekly expiration date.
“The trade that really popped out to me was the Aug. 7 expiration — so this Friday — 35-strike call,” Eison said. “That traded about 5,000 times for about 54 cents, putting your breakeven at $35.54, or about 7% [higher than]current at-the-money.”
Investors looking to use ETFs to trade Uber can also consider the ProShares Ultra Consumer Services (UCC), which has performed well over the last month.
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