Uber and Lyft earnings battle could be replacing the price war

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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.

 

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