(MENAFN - Baystreet.ca) Uber (NYSE:UBER) stock rose 6.05% to close out the week on August 16.The stock has been reeling since the company reported a mammoth $5-billion loss for the second quarter. It reignited already-present fears about the company's earnings and ability to turn a profit going forward.
The loss is somewhat deceptive, as Uber was forced to eat a $3.9-billion stock-based compensation bill in the quarter. Uber also reported a revenue miss as it recorded $3.2 billion in Q2 2019. Things looked even worse in the shadow of Uber's top competitor Lyft, which beat revenue estimates but also reported a higher-than-expected loss.
Analysts were particularly concerned with Uber's slowing revenue growth, which has worsened over the past six quarters. The company has vowed to invest in aggressive growth ventures, but so far that strategy has failed to net the kind of acceleration analysts want to see.
Unsurprisingly, it appears that Uber and Lyft are gearing up for price hikes to shore up losses.
Lyft has already vowed to rise prices for its services going forward, and it predicts that Uber and other competitors will follow suit. It is a strange sight as these companies were known just as widely for their price advantage in comparison to regular taxi services as they were for their convenience and speed.
Uber stock had an RSI of 35 as of close on August 16, putting it just outside of technically oversold territory. This stock will require a patient hand as profitability may still be a way off.