### Uber Shares Plummet on Gross Bookings Miss Despite Record Revenue

Uber's stock plunged over 11% on Thursday following a third-quarter report that showed the company falling short on vital gross bookings figures. Despite posting a revenue of $11.2 billion, which exceeded Bloomberg's estimates of $10.99 billion and marked a 22% increase from the previous year on a constant currency basis, Uber's gross bookings were a disappointment. The ride-hailing giant reported $41.0 billion in gross bookings, up 16% from a year ago but failing to meet the anticipated $41.24 billion.

The company did manage to surpass expectations in terms of adjusted EBITDA, which came in at $1.7 billion, higher than the forecasted $1.65 billion, according to Bloomberg. Still, this wasn't enough to keep investors happy, as the stock, which had seen a rise of over 25% prior to the report, experienced a steep decline.

Uber's executives, however, remain optimistic. CEO Dara Khosrowshahi emphasized the company's ongoing profitable growth and highlighted that Uber Now counts over 25 million Uber One members globally. Adding to this, CFO Prashanth Mahendra-Rajah pointed out Uber's significant milestone of achieving over $1 billion in GAAP operating income for the first time in its history. He reiterated the 20% annual growth target for gross bookings on a constant currency basis.

Looking forward to the fourth quarter, Uber projects gross bookings to range between $42.75 billion and $44.25 billion, representing a 16% to 20% year-over-year growth rate. The company also expects adjusted EBITDA to fall between $1.78 billion and $1.88 billion.

Despite the setbacks, analysts like Dan Ives from Wedbush remain hopeful about Uber's future, maintaining an Outperform rating and an $86 price target. Ives suggested that Uber is likely to sustain mid-teens bookings growth in the medium term, backed by increasing margins and strong free cash flow conversion.

Additionally, Doug Anmuth from JPMorgan expressed optimism about Uber's delivery business, which saw a 17% increase in gross bookings to $18.66 billion year-over-year. Anmuth also noted the significant growth in Uber's subscription service, Uber One, which now has 25 million members, an impressive 70% increase from last year. He maintains an Overweight rating and a $95 price target for Uber.

Overall, while Uber has shown substantial revenue gains and achieved major financial milestones, the miss on gross bookings has left investors cautious, leading to a sharp drop in its stock price.