Uber stock surges as company lifts its outlook

Uber (UBER.US) stock jumped nearly 10.0% during today's session after the ride sharing company said it could post its first adjusted profit in the third-quarter. Uber revealed in a SEC filing that it now expected third-quarter adjusted results before interest, taxes, depreciation and amortization to range from a loss of $25 million to a profit of $25 million. This figure results in a significant improvement in the firm’s bottom-line profitability compared to a previously forecasted $100 million negative adjusted EBITDA.

Also Uber now expects to report between $22.8 billion and $23.2 billion in gross bookings for the third quarter, adjusted from the $22 billion to $24 billion it predicted on its second-quarter earnings call. However, Uber still has to prove it can handle overcoming pressure from regulators around the world over how the company treats and classifies its employees - currently as independent contractors - and any failure on that particular front could impact the company's ability to  deliver positive results in the future.

Uber (UBER.US) stock launched today's session with a bullish price gap and broke above the downward trendline, 50 SMA (green line) and is currently testing 23.6 Fibonacci retracement of the last downward wave. If current sentiment prevails, then the upward move may accelerate towards resistance at $48.00 which is marked with the upper limit of the 1:1 structure and 38.2 Fibonacci retracement. However, if sellers will manage to regain control, then another downward impulse towards support at $38.25 may be launched. Source: xStation5