Uber (NYSE:UBER) stock is making news Monday following an email about the company planning to cut spending.
Let’s take a look at everything holders of UBER stock need to know about this news below!
- A recent email from Uber that was sent out to employees goes over the changes.
- In it, CEO Dara Khosrowshahi details the plans to reduce spending on marketing.
- The company will also be reducing incentives and will treat hiring as a privilege.
- This will see it being more deliberate about when and where it hires new workers.
- The Uber CEO says that this will help the company in its goal to achieve profitability.
- These changes come as Khosrowshahi explains a major shift is coming to the market.
- That follows the Covid-19 pandemic and easing restrictions afterward boosting some stocks higher.
- However, the rally seems to be over with the stock market going through a rough period of late.
Here are a few snippets of the email the Uber CEO sent to employees, as collected from CNBC.
- “After earnings, I spent several days meeting investors in New York and Boston. It’s clear that the market is experiencing a seismic shift and we need to react accordingly.”
- “We have to make sure our unit economics work before we go big. The least efficient marketing and incentive spend will be pulled back.”
- “We have made a ton of progress in terms of profitability, setting a target for $5 billion in Adjusted EBITDA in 2024, but the goalposts have changed. Now it’s about free cash flow. We can (and should) get there fast.”
UBER stock is down 2% as of Monday morning and is down 41.9% since the start of the year.
Investors seeking out more stock market news are in the right place!
We’ve got all the hottest stock news traders need to know about for Monday! Among that is what has shares of Palantir Technologies (NYSE:PLTR) stock moving, this morning’s pre-market stock movers, and the latest news from Rivian (NASDAQ:RIVN). You can catch up on all of this at the following links!
More Monday Stock Market News
- Why Is Palantir (PLTR) Stock Down 20% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Monday
- Dear RIVN Stock Fans, Mark Your Calendars for May 9
On the date of publication, William White did not have (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.