Uber Stock Trading Higher Ahead of Q2 Earnings

Uber Earnings on DeckControversial tech company Uber will report Q2 earnings later today and traders are bracing for plenty of volatility around the release. Ahead of the open today, Uber is trading higher, currently sitting around 97% up on the year on the back of a solid tech sector rally over recent months. However, today’s results hold the potential to cause some correction if Uber is seen undershooting forecasts.Q2 ForecastsIn terms of the numbers, the market is looking for EPS of -$0.012 on revenues of $9.339 billion. Clearly, given the negative EPS forecast, the best outcome here for Uber stock would be a solid beat on EPS that prints above $0. If seen, this should help underpin the rally and drive a fresh move higher, dependent on what the outlook is for the current quarter and overall year. However, on the back of negative earnings last quarter, if a further drop is seen this time around, Uber might be in for a sharp correction lower given the bull run we’ve seen recently that will have no doubt drawn in plenty of weaker, speculative buyers.Technical ViewsUberThe rally in Uber stock has seen price breaking out above the 45.16 level with the market now fast approaching a test of the big 51.40 resistance. This is a key level for the stock and might see some short-term selling kick in on profit taking. However, with momentum studies positive, the outlook stays bullish while above the 45.16 level.