Uber Crypto Payments Are on the Horizon According to Its CEO


Uber (NYSE:UBER) stock is not having a good day. The transportation services company is already back on the decline, even immediately following its good news from the fourth quarter. But UBER stock shareholders fear not; there’s a new catalyst on the horizon. Today, the company’s CEO is speaking out in regard to the rapidly growing adoption of cryptocurrency. According to him, Uber crypto payments will be here sooner or later.

Image of someone using the Uber app on their smartphone
Source: Shutterstock

This week saw Uber’s Q4 earnings report for 2021. As InvestorPlace contributor William White reports, the call was fairly bullish for investors. Indeed, the company boasted earnings per share (EPS) of 44 cents, a stark contrast to the Q4 2020 EPS loss of 54 cents per share. Uber also beat revenue expectations, with a Q4 revenue of $5.78 billion.

So, what then is causing UBER stock to tumble this afternoon? It seems like the answer could be found in the company’s newly adjusted earnings projections. Uber is falling short of investor desires in this new forecast. CFO Nelson Chai says that the company is aiming for $5 billion in earnings before interest, taxes, depreciation and amortization (EBITDA) by 2024. This figure falls fairly short of analysts’ projected EBITDA. The conservative projections now seem to be worrying investors.

UBER Stock Is Down, But Uber Crypto Payments Can Turn Things Around

Losses are snowballing for Uber as a result of the announcement; UBER stock posted a loss of 6% yesterday and looks to be losing another 7%-plus today. But things aren’t all bad; CEO Dara Khosrowshahi announced an incoming catalyst in a recent interview.

In the interview with Bloomberg Markets, Khosrowshahi went to bat for the company and its short-term volatility, saying that Uber’s long-term value is rock solid. Moreover, the CEO reiterated its recent performance, citing a 27% year-over-year (YOY) growth in users.

But even more interesting than these comments are the CEO’s teasers around Uber crypto payments. Indeed, the executive says the company is “absolutely” watching the market and looking to include crypto payments in the future. The one thing holding Uber back, it seems, is the environmental toll of the crypto industry and the high cost to fuel transactions.

Of course, investors won’t have to wait long for these issues to start seeing fixing, though. Ethereum (ETH-USD) — one of the cryptos most popularly used by exchanges and most closely associated with high transaction costs — will be introducing its broad scaling efforts and switch to the environmentally conscious proof-of-stake proofing algorithm this summer. Thus, the way for Uber crypto payments is being paved over the coming months. But even without a hard timeline for investors, the news is of great value to UBER stock holders who like to see the company demonstrating its forward-thinking.

On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Brenden Rearick is a Financial News Writer for InvestorPlace’s Today’s Market team. He mainly covers digital assets and tech stocks, with a focus on crypto regulation and DeFi.

Article printed from InvestorPlace Media, https://investorplace.com/2022/02/uber-crypto-payments-are-on-the-horizon-according-to-its-ceo/.

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