Analysts say ‘risk-seeking’ investors should buy this Uber plunge following abysmal results

Uber shares are plunging after a dismal earnings report but Wall Street analysts are urging clients to not be scared and take a “risk” on the stock even …

Uber shares are plunging after a dismal earnings report but Wall Street analysts are urging clients to not be scared and take a “risk” on the stock even after the company fell short of estimates on nearly every major metric.

Just months after making its May stock market debut, the company reported a $5.2 billion loss for the second quarter and blamed stock-based compensation as well as IPO related expenses.

Shares of the ride hailing giant’s stock tanked and are down over 9% in early market trading

Most analysts admitted the stock was risky and not for the faint of heart.

“Given negative investor sentiment, the complicated nature of its financials and lack of profitability, we are not surprised to see shares reacting poorly to results,” Barclays analysts said in a note to clients.

“We think risk-seeking, opportunistic investors should take advantage of this move and any weakness into UBER’s lock-up expiration, because for those looking closely under the scorched-earth rubble, there are actually some positive things going on,” they said.

“While there are considerable risks in ownership across the space given the intense competition, regulatory issues, and operating pressures, we continue to believe the risk/reward in owning the leader in this space is favorable,” Goldman Sachs said.

But one analyst said that while Uber might be a special company, he warned not to expect much from shares anytime soon.

“While we continue to view UBER as a once-in-a-generation company with an opportunity to revolutionize transportation and logistics, we believe business complexity, lack of visibility into forward numbers, and a precarious competitive landscape are likely to keep shares range bound,” Susquehanna said.

Here’s what else major analysts are saying about Uber’s earnings report:

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