Plus   Neg

Stock Alert: Uber Shares Climb Following Acquisition

Shares of Uber Technologies, Inc. (UBER) jumped 7% on Tuesday after the company announced that its food delivery business in India is acquired by Zomato, one of the biggest food delivery apps in the country.

The stock recorded a high of $37.80 before closing at $37.60. UBER has been trading in a range of $25.58- $47.08 in the past one year.

Zomato, whose major investors include Alibaba's affiliate Ant Financial, bought Uber Eats in an all-stock transaction, that gives Uber 9.99% ownership in Zomato.

Early this month, Uber had acquired Careem Networks FZ-LLC, a ride-hailing service provider in the greater Middle East region with major markets including Egypt, Jordan, Saudi Arabia, and the United Arab Emirates.

Uber is stepping into grocery delivery space by buying majority ownership of Cornershop, a leading online grocery provider in Chile, Mexico, and more recently in Peru and Toronto. The deal, which was announced in October last year is expected to close in the first half of 2020.

In the third quarter ended September 30, 2019, revenue grew year-over-year to $3.813 billion from $2.944 billion. However, Uber had a net loss of $1.162 billion or $0.68 per share in the third quarter compared with net loss of $986 million or $2.21 per share in the same quarter a year ago.

The company is expected to report earnings on February 6, after market close.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Apple Inc. (AAPL) said it doesn't expect to meet its revenue guidance for the second quarter due to lower smartphone demand, and temporary work slowdowns related to coronavirus outbreak in China. Textron Specialized Vehicles recalled 20,573 units of Gas-powered E-Z-GO, Cushman and Tracker brand off-road vehicles for possible fire hazard, a statement by the U.S. Consumer Product Safety Commission said. The company said starter generator wire can be improperly secured, allowing it to come into contact with the vehicle's exhaust that could cause a fire hazard. Delta Air Lines Inc. said Friday that it will invest $1 billion over the next decade to mitigate all greenhouse gas emissions from its global business, starting March 1, 2020. The company intends to become the first airline in the world to go carbon neutral. The airline said that over the next decade, it will spend $1 billion to drive innovation and advance clean-air travel technologies.
Follow RTT