Uber Stock Recovers despite Mixed Earnings as Robotaxi Expansion Hits Hong Kong and Europe

Uber Technologies (UBER) shares fell 4.6% in premarket trading on Wednesday after the company revealed a mixed bag of earnings results. Now, although this is a natural reaction from investors to the news, one mustn't ignore the other part of the news. Uber is undergoing an aggressive expansion of its robotaxi services. During its fourth-quarter earnings presentation, Uber announced it will launch driverless rides in Hong Kong, Madrid, Houston, and Zurich. The move into Hong Kong marks the company's first robotaxi entry into the Asian market. Moving into international markets allows the company to stay ahead as competition with Alphabet's (GOOGL) Waymo intensifies.Claim 50% Off TipRanks PremiumUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential Uber Expands Into Hong Kong and Zurich The company is maintaining its asset-light strategy by partnering with established technology providers rather than building its own cars. In Hong Kong, Uber is expected to work with Baidu (BIDU), which already holds licenses for driverless trials in the city. For its European expansion into Zurich, the company is likely to utilize WeRide, a firm that has already secured autonomous driving permits in parts of Switzerland. Using these third-party fleets allows Uber to scale quickly without the massive costs of owning thousands of vehicles. Uber Targets 10 Global Markets This rollout is part of a broader goal to offer driverless vehicles in more than 10 markets globally by the end of 2026. While the company didn't give exact launch dates, it confirmed that these services will involve "previously publicized partners." This list includes companies like Lucid Group Inc. for the San Francisco Bay Area and Volkswagen AG for Los Angeles. By acting as the platform for these various tech providers, Uber aims to make driverless cars one of its primary growth areas for the next decade. Uber Navigates Mixed Earnings Results Despite the excitement over robotaxis, Uber's latest financial report showed some challenges. The company earned 71 cents per share in the fourth quarter, falling short of the Wall Street estimate of 79 cents. This miss happened because Uber lowered prices to increase the number of trips, which squeezed its profit margins. However, total trips rose 22% for the quarter, and the company's revenue forecast remains strong, with expected gross bookings reaching up to $53.5 billion in the coming months. Is UBER a Good Stock to Buy? Ahead of the results, analysts remained positive. On TipRanks, Uber has a Strong Buy consensus rating based on 28 Buys, three Holds, and one Sell rating. The average 12-month Uber price target of $112.31 implies 44% upside potential from current levels. Over the past year, UBER stock has gained 11.7%. These analyst ratings are likely to change following the results.