Uber Technologies (NYSE:UBER) just took a hit, with shares sliding over 7.4% as of 11.31am today, after its latest earnings report failed to impress Wall Street. The ride-hailing giant posted solid revenue of $11.96 billion, beating expectations, but adjusted earnings of $0.23 per share fell well short of analysts' $0.50 forecast. Investors weren't thrilled with Uber's Q1 outlook eithergross bookings are expected to rise 17% to 21%, but that wasn't enough to satisfy a market that wanted stronger momentum. Add in rising costs and currency headwinds, and suddenly, a 40% jump in adjusted EBITDA wasn't enough to keep the stock afloat.

• Warning! GuruFocus has detected 3 Warning Sign with UBER.

Uber's leadership isn't sweating it. The company is doubling down on its belief that the stock is undervalued, backing it up with a $1.5 billion accelerated buyback. Free cash flow more than doubled in Q4 to $1.7 billion, giving Uber plenty of firepower to return value to shareholders. Meanwhile, the company is making big moves in self-driving techpartnering with Alphabet's Waymo to roll out autonomous taxis in Austin. But competition isn't backing down. Lyft (NASDAQ:LYFT) is coming in hot with aggressive pricing strategies, looking to chip away at Uber's dominance.

Despite the market's reaction, Uber's fundamentals remain strong. The company is pushing ahead with automation, expanding its business-focused services, and stacking up free cash flow. Short-term volatility is part of the game, but with its market dominance and strategic bets, Uber could be setting itself up for a big comeback.