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"Net loss attributable to Uber Technologies, Inc. of $2.9 billion, which includes $277 million in stock-based compensation expense and pre-tax impairment write-

"Net loss attributable to Uber Technologies, Inc. of $2.9 billion, which includes $277 million in stock-based compensation expense and pre-tax impairment write-downs of $2.1 billion. Net loss attributable to Uber Technologies, Inc. excluding the impairment write-downs, net of the tax benefit would have been $1.1 billion." So a loss of $1.1bn is an improvement on $1.4 last quarter, not including write-downs associated with investments in Didi and Grab. This explains why the stock went up not down after earnings. >https://www.marketwatch.com/press-release/uber-plows-forward-despite-loss-2020-05-08 https://www.marketwatch.com/press-release/uber-plows-forward...

clairity 6y ago
you shouldn't ignore impairment. it's a place to stuff a bunch of bad decisions, and an amorphous bucket where value can be plausibly inflated and deflated to control the performance story of a company (i.e., where fraud can happen).
- deleted 6y ago
  [deleted]
- valuearb 6y ago
  This is all true, but it can also be a place to acknowledge the bad decisions Kalinack made. When you have a grab bag collection of growth businesses like Uber, the important question is whether the core business can be profitable, and to that end you need to exclude the failures of the non core businesses.
  - lumost 6y ago
    isn't uber still priced as if they had grown to be a profitable business across all of their growth businesses? I have a hard time understanding the valuation of Uber given any negative indications on any of their businesses.
- sceptical 6y ago
  In this particular case it is mainly the value of the investments in DiDi, Yandex.Taxi and Grab. Once those will bounce back, Uber will have a very profitable quarter. Of course then it will be ignored as just increased value of investments.
dforrestwilson 6y ago
It’s very hard to “explain” why a stock goes up or down after earnings using only a handful of the reported KPIs. Lots of factors, company specific and macro, factor in.

clairity 6y ago

you shouldn't ignore impairment. it's a place to stuff a bunch of bad decisions, and an amorphous bucket where value can be plausibly inflated and deflated to control the performance story of a company (i.e., where fraud can happen).

deleted 6y ago
[deleted]
valuearb 6y ago
This is all true, but it can also be a place to acknowledge the bad decisions Kalinack made. When you have a grab bag collection of growth businesses like Uber, the important question is whether the core business can be profitable, and to that end you need to exclude the failures of the non core businesses.
- lumost 6y ago
  isn't uber still priced as if they had grown to be a profitable business across all of their growth businesses? I have a hard time understanding the valuation of Uber given any negative indications on any of their businesses.
sceptical 6y ago
In this particular case it is mainly the value of the investments in DiDi, Yandex.Taxi and Grab. Once those will bounce back, Uber will have a very profitable quarter. Of course then it will be ignored as just increased value of investments.

dforrestwilson 6y ago

It’s very hard to “explain” why a stock goes up or down after earnings using only a handful of the reported KPIs. Lots of factors, company specific and macro, factor in.