Uber forecasts strong second-quarter bookings despite Middle East woes

Uber Technologies forecast second-quarter bookings above Wall Street estimates on Wednesday (May 6) on strong demand for ride-hailing and delivery services, even though the Middle East conflict weighed on its growth.

Shares of the San Francisco-based company rose about 9% in premarket trading.

The strong forecast is a sign that the company's strategy of keeping prices steady while pushing into higher-margin areas such as its platform for businesses are paying off, helping it navigate higher fuel costs and geopolitical tensions.

Strong delivery demand in international markets, including Australia, and expansion into new geographies such as Denmark have also helped power growth.

Uber said it expects gross bookings of $56.25 billion to $57.75 billion for the June quarter, above analysts' average estimate of $56.07 billion, according to data compiled by LSEG.

Production: Amy McConaghy, Anita Kobylinska/Reuters