Investors ignore increasing losses at Uber Technologies (NYSE:UBER) as stock jumps 3.5% this past week

The simplest way to invest in stocks is to buy exchange traded funds. But if you pick the right individual stocks, you could make more than that. To wit, the Uber Technologies, Inc. (NYSE:UBER) share price is 16% higher than it was a year ago, much better than the market decline of around 7.8% (not including dividends) in the same period. So that should have shareholders smiling. The longer term returns have not been as good, with the stock price only 9.1% higher than it was three years ago.

Since it's been a strong week for Uber Technologies shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for Uber Technologies

Because Uber Technologies made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last year Uber Technologies saw its revenue grow by 83%. That's well above most other pre-profit companies. The solid 16% share price gain goes down pretty well, but it's not necessarily as good as you might expect given the top notch revenue growth. If that's the case, now might be the time to take a close look at Uber Technologies. Human beings have trouble conceptualizing (and valuing) exponential growth. Is that what we're seeing here?

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. You can see what analysts are predicting for Uber Technologies in this interactive graph of future profit estimates.

A Different Perspective

We're pleased to report that Uber Technologies rewarded shareholders with a total shareholder return of 16% over the last year. That gain actually surpasses the 3.0% TSR it generated (per year) over three years. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 1 warning sign for Uber Technologies that you should be aware of.

Uber Technologies is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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