Uber stock falls 7% after weak profit forecast despite $10 billion robotaxi expansion plan

Uber Technologies Inc. stock fell up to 7% on August 5, 2026, after issuing a weaker-than-expected third-quarter profit forecast of 84 to 88 cents per share. The disappointing outlook overshadowed a solid second quarter, where gross bookings reached $58.02 billion. To secure its future, Uber announced a massive strategic shift, pledging over $10 billion to scale autonomous vehicle partnerships across 15 cities. This capital-heavy push comes as its exclusive robotaxi alliance with Alphabet's Waymo in Austin and Atlanta is set to end by early 2028.

Uber stock decline

• ▪Uber Technologies Inc. stock has declined approximately 12% to 13% in 2026 as of August 4, 2026, underperforming the Nasdaq Composite index
• ▪Uber Technologies Inc. stock fell between 3% and 7% on August 5, 2026, following the release of its second-quarter earnings report

Robotaxi investment plan

• ▪Uber Technologies Inc. expects to operate robotaxi services in at least 15 cities by the end of 2026
• ▪Uber Technologies Inc. announced plans to commit more than $10 billion over the coming years to bring autonomous vehicles to market at scale
• ▪The planned $10 billion autonomous vehicle investment will primarily fund equity stakes in partners, vehicle commitments, and fleet operations support

Autonomous vehicle partnerships

• ▪Transport for London granted Private Hire Vehicle licenses to Uber's autonomous driving partner Wayve to operate safety-driver trials in London
• ▪Waymo plans to terminate its exclusive robotaxi partnership with Uber Technologies Inc. in Atlanta and Austin, Texas, by early 2028
• ▪Uber Technologies Inc. is expanding its autonomous vehicle network by partnering with developers including Zoox, Rivian, Lucid, and Nissan

Second-quarter financial results

• ▪Uber Technologies Inc. reported second-quarter 2026 gross bookings of $58.02 billion, beating Wall Street consensus estimates of $57.06 billion
• ▪Uber Technologies Inc. forecast third-quarter adjusted earnings per share of 84 to 88 cents, missing the analyst consensus estimate of 89 cents
• ▪Uber Technologies Inc. forecast third-quarter gross bookings of $58.25 billion to $60.25 billion, with a midpoint of $59.25 billion
• ▪Uber Technologies Inc. reported second-quarter 2026 revenue of $14.19 billion, up 12% year-over-year, narrowly missing the $14.24 billion analyst estimate

Investor spending concerns

• ▪Investors are concerned with how Uber Technologies Inc. will balance its $10 billion robotaxi commitment alongside its $14.8 billion Delivery Hero acquisition
• ▪Cambiar Investors senior analyst Adam Ballantyne stated that Uber Technologies Inc. will need billions of dollars over four to five years to support partners