Uber’s Q4 Results Beat Expectations; Margin Expansion To Continue on All Fronts; Shares Attractive

Uber posted strong fourth-quarter 2021 results with the top and bottom line exceeding the FactSet consensus estimates. Demand for delivery remained strong and the segment generated positive adjusted EBITDA for the first time, which the firm expects to continue. Mobility demand continued to approach pre-pandemic levels, which further attracted drivers and stabilized prices for riders, expanding the adjusted EBITDA margin, displaying the platform’s strong network effect moat source. We were also pleased with the firm’s ability to further monetize the platform via advertising and other verticals.