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Squawk on the Street

Uber’s Profitability Prediction, Wall Street’s Record Rally & Xerox CEO to CNBC: We’re on the Attack

Squawk on the Street

CNBC

News, Business, Investing

4.1567 Ratings

🗓️ 5 November 2019

⏱️ 43 minutes

🧾️ Download transcript

Summary

Carl Quintanilla, David Faber & Jim Cramer discuss Uber’s continuing quarterly losses and CEO Dara Khosrowshahi’s upbeat outlook, predicting profitability by 2021. Plus, trade optimism fueling investor optimism, new all-time highs for the Dow and Nasdaq. And David’s latest reporting on the $2.3B Fujifilm-Xerox deal, ending their 57-year joint venture.

Transcript

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0:00.0

Market Moving Insight and Analysis joined Jim Kramer, David Faber, and me, Carl Kintanilla, on the opening bell hour of CNBC Squawk on the Street.

0:12.0

Good Tuesday morning, welcome to Squawk on the Street. I'm Carl Kintanio with Jim Kramer, David Faber, the New York Stock Exchange. The tide of record highs and trade optimism rolls on today.

0:22.1

Dow futures up almost 80 points amid reports the White House is debating whether to cut some tariffs on Chinese goods in order to solidify phase one.

0:30.0

Europe is mixed in the 10-year approaching 184. We got ISM services and jolts in an hour.

0:35.7

Our roadmap begins with Wall Street's record rally. Stocks point to a third

0:38.8

straight day of gains, fueled by increasing China trade optimism. Coming up, we'll get an exclusive

0:43.6

insight from two investment titans. J.P. Morgan's Jamie Diamond and Bridgewater's Ray Dalio.

0:49.8

Plus, shares of Uber, they are sinking on continuing losses, more than a billion dollars in the third quarter.

0:55.9

But CEO Darra Khoshajahi predicts profitability within two years.

1:00.2

And done everything right. Boeing's new chairman backing and battled CEO Dennis Mullenberg

1:05.0

and his handling of the 737 max crisis. Let's start with Uber. Shares falling in pre-market, despite a revenue beat.

1:12.7

Gross bookings and trip totals did come in below consensus.

1:16.1

Stocks now 35% below the IPO price back in May.

1:19.5

Yesterday on closing bell, CEO Darikaz Rashah, he said he sees profitability, as David

1:23.5

said, for the company in 2021.

1:26.9

It was a very significant beat on the top line in terms of revenue growth accelerating

1:32.6

and the bottom line.

1:34.8

We increased our 2019, the midpoint of our guidance in as far as EBITDA goes by 250 million.

1:43.2

And I'll tell you, Deirdre, well, we haven't finalized

1:46.8

our planning, and it's going to take a lot of hard work from a lot of folks. We are actually

1:53.7

targeting 2021 for adjusted EBITDA profitability full year.

2:00.4

So the echoes of what Lyft said last week, Jim, Street's kind of mixed on this. I've seen some price target cuts and raises today. Well, I mean, you've got RBC saying that there's 1.7 billion shares about to be unlocked. Wedbush says only $763 million. It's really interesting that there's a dispute on that. You know, this was one of those calls. you're listening. You're saying, wow, good, good, good, good. And then you get to Uber

...

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