Uber Shares Fall as Waymo Robotaxi Partnership Collapses
Uber Technologies Inc. faces investor scrutiny and falling share prices following the breakdown of its exclusive autonomous vehicle partnership with Waymo.
Shares of Uber Technologies Inc. have fallen 28% from an October record high of $100.10, lagging both the S&P 500 and Nasdaq 100. The decline follows the June winding down of a robotaxi partnership with Waymo in Phoenix and reports in late July that Waymo is exploring an exit from its exclusive pact with Uber.
Despite the partnership collapse, Uber is expected to report a 13% year-over-year revenue increase in its second-quarter earnings report on August 5. CEO Dara Khosrowshahi has noted healthy trends in markets where Waymo operates, and approximately 86% of analysts maintain a buy rating for the company despite short-term profit estimate cuts.
Market analysts suggest that strong performance in Uber's core mobility and delivery segments will not be enough to recover share prices. Dave Mazza, CEO of Roundhill Financial, indicated that a durable recovery requires the company to address structural questions regarding autonomy with concrete deployment numbers rather than commentary.
