© Reuters.

von Jeffrey Smith

Investing.com – Massive cuts to its investments in Asia and self-driving cars sent Uber (NYSE) stock down more than 10% on Wednesday. In the first quarter, the car rental service posted a net loss of $5.9 billion.

Uber received declines totaling $5.6 billion in connection with its investments in China’s Didi (NYSE:) Global, Southeast Asia’s Grab and Aurora, in which Uber built its self-driving technology business in 2020.

The company also booked $359 million in stock-based compensation expense.

However, the group expressed confidence in developments in its core business areas of mobility and food delivery, unlike its competitors Lift (NASDAQ :), whose shares fell 27% in after-hours trading Tuesday after the company warned of rising costs to get drivers back on the road.

Uber also shared that the current quarter is going a little better than analysts had feared. During the three months through June, the company expects total revenue to be in the range of $28.5 billion to $29.5 billion and adjusted EBITDA, a rough indicator of operating profitability, in the range of $240 million to $270 million. The midpoint of the range is about 2% above expectations.

“With free cash flow approaching breakeven in the first quarter, we now expect the full year of 2022 to be purposefully positive free cash flow,” said Nelson Chai, Uber’s chief financial officer, in a statement accompanying the quarterly results.

Last quarter, the company had negative free cash flow of just $47 million, a significant improvement over last year when it burned $635 million.

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