Uber's stock drops 6% despite a financial performance report that exceeded Wall Street expectations.

American company Uber Technologies achieved profits below Wall Street's expectations for the quarterly period ending in December, due to rising costs, and Uber forecasted lower bookings than estimates in the first quarter due to the strength of the dollar, leading to a 6% drop in its stock price before the bell.

In the last quarter of 2024, Uber recorded revenues of $11.96 billion, a 20% increase compared to the same period last year, against Wall Street's projections of quarterly revenues of only $11.77 billion.

Earnings per share also soared to $3.21, whereas a profit of 49 cents per share was expected. The adjusted earnings per share in the previous quarter reached 23 cents, which was lower than the estimated profit of 50 cents, according to data gathered by LSEG.

Additionally, total bookings of $44.2 billion exceeded expectations of $43.45 billion.

Meanwhile, Uber reported a 20.5% increase in total costs and expenses to $11.19 billion, resulting in a loss of $770 million in operating income, which was below Wall Street's estimates of $1.22 billion.

Dara Khosrowshahi, CEO of Uber, stated that the company ended 2024 with its strongest quarter ever, as growth accelerated through rides and overall bookings.

He added that their performance was supported by innovation and rapid execution across multiple priorities, including the significant opportunity presented by autonomous vehicles, explaining that Uber starts 2025 with clear growth momentum.

Before the U.S. stock market opened, Uber's stock (NYSE: UBER) recorded a drop of about 5.82%, trading near $65.69 per share.