Uber (UBER) shares are on the rise as the company reports impressive third-quarter earnings, beating analysts' estimates. The stock is breaking out of a double bottom base pattern with a buy point of 49.19. In recent trading, Uber shares have surged 3.8% to reach 49.90, signaling positive investor sentiment.

On Tuesday morning, Uber released its earnings report for the third quarter, revealing earnings of 10 cents per share on sales of $9.29 billion. Analysts had expected earnings of 7 cents per share on sales of $9.54 billion. While the revenue fell slightly short of expectations, the company attributed it to accounting changes.

Despite the revenue shortfall, Uber's third-quarter bookings grew by 21% YoY, totaling $35.3 billion. The Ride business saw a 31% increase in bookings, reaching $17.9 billion, while the Eats business experienced an 18% increase, amounting to $16.1 billion. Moreover, Uber reported an impressive 25% YoY growth in the number of trips, reaching 2.4 billion during the quarter.

Uber's Chief Financial Officer, Nelson Chai, stated that recent accounting changes led to a $521 million reduction in revenue for the quarter. However, RBC analyst Brad Erickson argued that without these changes, revenue would have exceeded Street expectations, similar to bookings.

The company's operating income for Q3 was $394 million, in stark contrast to a loss of $495 million in the same period last year. This follows the profitable second quarter, marking a significant milestone for Uber's ride-hailing and delivery operations.

Looking ahead, Uber projects gross bookings between $36.5 billion and $37.5 billion for the fourth quarter, exceeding analysts' estimates of $36.52 billion. CEO Dara Khosrowshahi expressed confidence in Uber's future prospects, highlighting the company's strong performance and its relentless focus on improving the consumer and driver experience.

Despite the challenging macro backdrop, Uber's stock has shown strength, with its relative strength hitting a new high of 96 out of 99. Analysts remain optimistic, citing robust engagement, solid driver supply, and rising profitability in the delivery sector. With a record of 6.5 million active drivers, Uber seems well-positioned to navigate broader market headwinds and generate strong results.

As of now, Uber's stock holds an impressive IBD Composite Rating of 88 out of 99, reflecting its solid growth potential. The company's recent breakout above its 50-day line, coupled with strong results from competitor DoorDash, signals positive momentum for Uber shares in the market.

In conclusion, Uber's stock is breaking out following their Q3 earnings report, which exceeded expectations despite a slight revenue shortfall. With a positive outlook for the fourth quarter and encouraging growth in key sectors, Uber continues to solidify its position among consumers and drivers.