On Tuesday, CNBC’s Jim Cramer advised investors to consider buying shares of Uber amid recent market fluctuations, highlighting the company’s notable growth in its latest earnings report. Cramer praised Uber for executing a clear and effective strategy, reflecting his confidence in the company’s performance despite a drop in stock prices.
After reporting better-than-expected revenue, Uber’s stock fell over 5% during the trading day, although it maintains a significant gain of nearly 57% year-to-date. Cramer noted that while some analysts expressed disappointment over the company’s margins, attributing the decline to heightened competition from rivals like DoorDash and Lyft, he remains optimistic about the fundamentals behind the company’s growth.
He explained that the stock’s downturn may have been exacerbated by an overall weak market environment, with major indices closing down for the day. However, Cramer emphasized that he is not overly concerned about the margin shortfall, focusing instead on Uber’s accelerating revenue growth and enhanced customer engagement. The ride-hailing and delivery segments are both expanding, along with the growth of the UberOne membership program, providing optimism for future performance.
Cramer conveyed his belief that despite a minor dip in margins, Uber is solidly profitable and well-positioned for continued success. He characterized the current situation as a buying opportunity, encouraging investors to view it as a chance to enter the stock during a temporary pullback.