Uber Stock Underperforming Ahead of Earnings

Uber Technologies Inc (NYSE:UBER) is gearing up to report third-quarter earnings before the market opens on Wednesday, Nov. 4. Zacks Consensus Estimates call for earnings of 94 cents per share, down 69.8% year over year, while revenue is expected to rise 9.4% to $14.74 billion.

UBER was last seen up 3.2% at $67.34. The shares are bouncing off an Oct. 29 52-week low of $64.04, with a 14-day Relative Strength Index (RSI) of 26.8 that sits firmly in "oversold" territory. Year to date, the rideshare name is down 17.6%. 

Uber has a bearish post-earnings history, finishing the session following earnings lower in eight of its last 12 quarters. During this period, the stock averaged a 1.4% loss and a 5.4% move, regardless of direction. More recently, UBER fell 5.3% following its latest report, after jumping 8.5% the quarter prior.

Options traders have been picking up puts at a faster-than-usual pace ahead of the event, though calls still outnumber puts on an absolute basis. UBER's 10-day put/call volume ratio of 0.70 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 92nd percentile of its annual range. 

Analysts, meanwhile, are firmly bullish. Of the 45 brokerages in coverage, 33 sport a "strong buy" rating, four say "buy," seven recommend a "hold," and just one carries a "strong sell" rating. Should the stock stall out after earnings again, a shift in sentiment could weigh on Uber.