Here’s Why Uber Technologies Inc. (UBER) Crashed on Wednesday

We recently compiled a list of the 10 Firms Defy Wednesday’s Broader Market Optimism. In this article, we are going to take a look at where Uber Technologies Inc. (NYSE:UBER) stands against the other stocks.

Wall Street extended its winning streak on Wednesday, with all of its main indices closing in the green territory, as investors seemed to have already factored in the news of tariffs imposition alongside uncertainties surrounding the Artificial Intelligence industry.

The Dow Jones gained another 0.71 percent, the S&P 500 grew 0.39 percent, and the tech-heavy Nasdaq increased by 0.19 percent.

Ten companies, however, defied a broader market optimism, mostly due to disappointing earnings results. This article details the reasons behind the drop in their share prices and latest earnings performance.

To come up with Wednesday’s biggest losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A close up view of a hand holding a smartphone, using a ride sharing app.

Uber Technologies Inc. (NYSE:UBER)

Transport network company Uber Technologies Inc. saw its share prices decline by 7.56 percent on Wednesday to end at $64.48 apiece as investors shunned the company’s strong 2024 earnings performance and instead took the path from an unclear 2025 outlook guidance.

In a statement, Uber said attributable net income in the fourth quarter of 2024 surged by 381 percent to $6.88 billion from the $1.43 billion registered in the same period in 2023, which includes a $6.4 billion benefit from a tax valuation release and a $556 million benefit due to net unrealized gains related to the revaluation of Uber’s equity investments. Revenues for the quarter increased by 20 percent to $11.96 billion from $9.9 billion year-on-year.

For the full year 2024, attributable net income soared by 422 percent to $9.86 billion from the $1.89 billion registered in 2023, while revenues increased by 18 percent to $43.98 billion from $37.28 billion year-on-year.

For 2025, Uber only provided an outlook of 17 to 21 percent increase in gross bookings to between $42 billion to $43.5 billion, as well as a 30-percent target for adjusted EBITDA between $1.79 billion and $1.89 billion.

Overall UBER ranks 9th on our list of Wednesday’s top losers. While we acknowledge the potential of UBER as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than UBER but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.