Uber Earnings Crush Estimates. Why the Stock Is Getting Slammed.

Uber Technologies stock fell sharply Tuesday after the ride-hailing company’s third-quarter earnings beat expectations, in large part due to one-time tax and investment benefits. Gross bookings of $49.7 billion also surpassed forecasts for $49 billion, with better-than-expected results across both ride-hailing and Uber Eats. The massive earnings beat was down to a $4.9 billion benefit from a tax valuation release and a $1.5 billion pretax benefit from revaluations of the company’s equity investments.