Uber Technologies Inc (NYSE:UBER) shares surged higher Thursday morning after the company announced strong quarterly results, but the stock was halted and turned negative following announcements at Uber's investor day presentation.
What Happened: "I think what happened was they gave us projections for 2024 ... and I think what investors are probably saying is how fast is that going to happen," Douglas C. Lane & Associates' Sarat Sethi said Thursday on CNBC, reporting live from Uber's investor presentation.
Uber turned a profit for the first time as a public company in the fourth quarter. The company provided EBITDA projections of $5 billion for 2024, according to Sethi. "Now it's a show-me story," he said.
See Also: Dan Ives Says Uber's Q4 Results Were Better Than Feared
"They laid out a really good plan." Uber is leveraging its technology and offering products for mobility and delivery, he said, adding that 46% of the company's users use both.
The company is also focused on expanding Uber Freight and Uber for business, he said.
What's Next: "Their big issue is the supply, it's really not the demand, so I think as we come out of COVID, I like the stock," Sethi told CNBC.
He expects Uber to reward shareholders with a couple good quarters of execution after hearing management's detailed plan for the future.
"With what they have laid out in terms of operational leverage and a total addressable market, I think this is one that I want to stick with for the long term," Sethi said.
UBER Price Action: Uber has traded as low as $32.81 and as high as $64.05 over a 52-week period.
The stock was down 4.6% at $38.33 Thursday afternoon.
Photo: courtesy of Uber.
