Uber and Lyft earnings battle could be replacing the price war

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 65 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 29%
  • Publisher: 97%

Business News News

Business Business Latest News,Business Business Headlines

The price war between Uber and Lyft may be ending, which is bad for riders but good for investors.

Ride-hailing market rookies Uber Technologies Inc. and Lyft Inc. will slug it out this week with earnings, but the most prominent topic could be a war between them that is ending.

Lyft LYFT, +1.54% , which reports second-quarter results on Wednesday afternoon, predicted that 2019 would be its peak year of losses when it first reported earnings in May. Both freshly-minted public companies hemorrhaged plenty of red ink in their first earnings reports: Uber lost $1.01 billion and Lyft $1.14 billion. FactSet analysts estimate a whopping $3.34 billion shortfall for Uber as it digests the bitter stock-based compensation pill from its IPO in May.

RBC Capital analyst Mark Mahaney remains bullish on Uber’s and Lyft’s long-term business prospects, partly because of those newer, unprofitable business units, though. He foresees a total addressable market with an estimated $2.5 trillion in gross bookings, with Uber chiefly benefiting as its dominant leader.

Of the 30 analysts surveyed by FactSet, Lyft on average is expected to post a loss of $1.15 a share, up from the 61-cent loss expected at the beginning of the quarter. Estimize is forecasting a loss of $1.03 a share.Revenue: Wall Street expects revenue of $3.3 billion from Uber, according to 29 analysts polled by FactSet. Analysts are looking for monthly active platform consumers of 98.4 million, up from 93 million in the previous quarter, according to FactSet. Uber reported revenue of $2.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

KLA Corp. stock slips after earnings beat amid tech selloffKLA Corp. shares slipped in the extended session Monday after the semiconductor-equipment maker topped Wall Street earnings estimates for the quarter amid a...
Source: MarketWatch - 🏆 3. / 97 Read more »

Shake Shack stock soars after reporting earnings beat, raising revenue forecastShares of Shake Shack rose nearly 3% in extended trading on Monday, after the company reported second-quarter earnings that topped Wall Street's expectations and raised its revenue forecast for the year What about Steak and Shake? Sounds like a hipster nightclub.
Source: CNBC - 🏆 12. / 72 Read more »

Take Two Stock Recovers From Trump Slump on Strong Fiscal Q1 2020 EarningsTake Two Interactive investors sent the company’s share price down 5.2% Monday during trading hours following President Trump’s threats to “stop the glorification of violence” — but the Trump…
Source: Variety - 🏆 108. / 63 Read more »