Uber Technologies Inc.'s (UBER) stock plummeted 7.47% in the pre-market trading session on Wednesday, February 5, 2025, after the ride-hailing giant reported mixed fourth-quarter results and provided a disappointing outlook for the current quarter.

While Uber's revenue of $11.96 billion for the fourth quarter surpassed analysts' estimates of $11.77 billion, its operating income of $770 million fell significantly short of the expected $1.21 billion. The company's net income of $6.88 billion was boosted by a $6.4 billion benefit from a tax valuation release and a $556 million gain from the revaluation of its equity investments.

Uber's gross bookings, a key metric that tracks the value of rides and orders on its platform, grew 18% year-over-year to $44.2 billion, surpassing expectations of $43.48 billion. However, the company's forecast for the current quarter's gross bookings range of $42 billion to $43.5 billion fell short of analysts' estimates of $43.5 billion at the midpoint.

Uber cited a 5.5 percentage point headwind from the strong U.S. dollar as a factor impacting its bookings growth forecast. Additionally, the company's adjusted EBITDA guidance of $1.79 billion to $1.89 billion for the first quarter was slightly below the expected $1.85 billion.

Investors appear concerned about Uber's path to profitability and growth prospects amid increasing competition in the ride-sharing space, including from autonomous vehicle companies like Waymo and Tesla. There are lingering doubts about the timeline and public adoption of autonomous vehicles, which could present both opportunities and risks for Uber.