Uber Shares Turn Lower Following Investor Day Presentation: Why This Investor Liked What He Heard

Uber Technologies Inc UBER shares surged higher Thursday morning after the company announced strong quarterly results, but the stock was halted and turned negative following announcements at Uber's investor day presentation.

What Happened: "I think what happened was they gave us projections for 2024 ... and I think what investors are probably saying is how fast is that going to happen," Douglas C. Lane & Associates' Sarat Sethi said Thursday on CNBC, reporting live from Uber's investor presentation.

Uber turned a profit for the first time as a public company in the fourth quarter. The company provided EBITDA projections of $5 billion for 2024, according to Sethi. "Now it's a show-me story," he said.

See Also: Dan Ives Says Uber's Q4 Results Were Better Than Feared

"They laid out a really good plan." Uber is leveraging its technology and offering products for mobility and delivery, he said, adding that 46% of the company's users use both.

The company is also focused on expanding Uber Freight and Uber for business, he said. 

What's Next: "Their big issue is the supply, it's really not the demand, so I think as we come out of COVID, I like the stock," Sethi told CNBC. 

He expects Uber to reward shareholders with a couple good quarters of execution after hearing management's detailed plan for the future. 

"With what they have laid out in terms of operational leverage and a total addressable market, I think this is one that I want to stick with for the long term," Sethi said.

UBER Price Action: Uber has traded as low as $32.81 and as high as $64.05 over a 52-week period.

The stock was down 4.6% at $38.33 Thursday afternoon. 

Photo: courtesy of Uber.

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Posted In: EarningsLong IdeasNewsEventsMoversMediaTrading IdeasCNBCSarat Sethi
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