Uber And Alphabet Quarterly Results

Uber announced its results before the market opened, and the stock dropped more than 5%, wiping out any positive expectations.

Alphabet, on the other hand, reported after the market close, and its stock jumped as much as 2.8% in after hours trading.

UBER

Uber delivered record operating metrics, but it failed to convince investors. Monthly active platform users surpassed 200 million, a major milestone. Daily trips exceeded 40 million, clearly highlighting strong demand for mobility services. Total revenue grew by 20%, reaching 14.4 billion dollars, while adjusted net earnings increased by 25% to 1.5 billion dollars, or 0.71 dollars per share.

And yet, the stock fell. What went wrong?

The market focused mainly on two factors that made the difference.

First, guidance for the next quarter came in below expectations. Management forecasts earnings per share of up to 0.72 dollars, while analysts were expecting 0.75. At the same time, although projected bookings remain on an upward path above 52 billion dollars, the operating profit margin remains very low. EBITDA margin stands at just 4.6%, which is extremely limited given the risk profile and scale of the business.

Second, costs are rising. Uber is actively investing in lower cost ride options such as Wait & Save and shared rides. This strategy may help increase market share, but it puts pressure on margins. At the same time, higher insurance costs are further weighing on financial results.

Still, there is a long term narrative.

Uber has shifted its focus toward autonomous driving technology. CEO Dara Khosrowshahi emphasized that by the end of 2026, Uber plans to deploy autonomous vehicles in at least 15 cities worldwide. The company has already partnered with Waymo, Nvidia, Waabi, and Avride. According to management, autonomous vehicles on the Uber network show significantly higher utilization compared to standalone platforms, and autonomy is viewed as a multi trillion dollar opportunity for the transportation industry.

However, this optimism was not enough to overshadow investor concerns about profitability and near term margin pressure.

ALPHABET

Now moving on to Alphabet, Google’s parent company. The company delivered outstanding results, both in terms of numbers and in terms of future narrative.

Total revenue reached 113.83 billion dollars, beating estimates. Net income came in at 34.46 billion dollars, up 30% year over year. Earnings per share reached 2.82 dollars, versus expectations of 2.63.

Google Cloud posted exceptional revenue growth of 48%, reaching 17.7 billion dollars. Search also beat expectations with 63.1 billion dollars in revenue, while YouTube grew by 8.7%, reaching 11.38 billion dollars.

But the real focus was not revenue.

It was AI, and specifically Gemini.

Sundar Pichai revealed that the Gemini app now has over 750 million monthly active users. It generates more than 10 billion tokens per minute through its API, and enterprise adoption is accelerating rapidly. The most striking point was this: Alphabet’s AI investments for 2026 are expected to reach between 175 and 185 billion dollars, nearly double current levels.

The market interpreted this aggressive investment positively. Why?

Because analysts believe this growing budget is not about wasteful spending, but about R&D and AI infrastructure that create long term competitive advantages.

When this is combined with strong operating profitability, robust cash reserves, and a leading position in the cloud market, it becomes clear why the stock moved sharply higher.