Uber Stock: Buy the Dip?

Uber reported revenue increasing by 12% to 14.2 billion and operating profit increasing by 30% to 1.9 billion. And after these results were released, the stock price was down over 5%. So, what gives? And is this a buying opportunity? Those are the questions I'll answer while reviewing the company's latest financial update. >> I want to thank The Motley Fool for

sponsoring this video. Visit fool.com/parkev for the 10 best stocks to buy now. >> Uber CEO said that they added more first-time users over the past 12 months than in any period over the company's past 5 years. That shows that the growth stage in this business is still in full cycle, and the company is likely to continue adding

many more customers as the convenience advantage it offers sees the customers valuing that proposition significantly. Overall, gross bookings increased 24% to $58 billion. Remember, gross bookings is all the money that people are spending on the Uber platform. Uber doesn't take that all as revenue, but it's just all the money that's spent on the

platform. Some of that goes to drivers, some of that goes to restaurants, some of that goes to other retailers, and Uber takes a percentage of all of those transactions. The more spending that's happening on the platform, the better it is for Uber. So, the revenue figures at 14.2 billion was less than what the company had

forecasted and less than what investors were looking for, but the overall operating income growth was excellent at 30% compared to the 12% revenue growth. It's really benefiting from economies in scale. The actual business is performing well. The core business is performing well. The big question mark looms over the business, and that's driverless car