No Lyft for Uber shares after results fall short
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[August 10, 2019] (Reuters)
- Shares of Uber Inc fell 10% in early
trading on Friday after the ride-hailing service missed most Wall Street
targets in its quarterly earnings report, in sharp contrast to upbeat
numbers from U.S. rival Lyft Inc a day earlier.
None of the Wall Street brokerages who cover the stock changed their
recommendation on Uber, and the fall was almost equivalent to the 8%
surge in the company's shares after Lyft's numbers on Thursday.
Revenue at the company, however, grew just 14% compared to an almost
150% jump in costs, leaving the firm with a more than $5 billion loss,
its biggest ever.
"In a nutshell, there were many puts and takes in the quarter but
overall we would characterize this print/guidance as a B performance
with the Street expecting an A+ coming off its recent IPO," Wedbush
analysts said.
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Until the broader market turbulence of the past week, Uber shares were
recovering solidly from a rough start to their life on the New York
Stock Exchange.
That reflected continuing doubts over the solidity of the company's
long-term business model. But of the 33 brokerages now covering the
stock, 21 have "buy" or higher ratings, 11 are on "hold" and just one
has a "sell" rating.
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![](../images/081019pics/busine43.jpg)
A screen displays the company logo for Uber Technologies Inc on the
day of its IPO at the New York Stock Exchange (NYSE) in New York,
U.S., May 10, 2019. REUTERS/Brendan McDermid/File Photo
![](http://archives.lincolndailynews.com/2019/Aug/10/images/ads/current/graue_19_sonic_050719.png)
On Friday, two reduced their price target for the stock while another two
raised.
Several brokerages pointed to comments by Chief Executive Officer Dara
Khosrowshahi that the price war in the ride-hailing business was easing and that
both Lyft and Uber were laying out a path to future profits.
"Near term, bears pointing to the 'chicken and the egg' problem (profits or
growth?) – may carry the day... but we like bulls' chances longer term as they
took another step on the path to profitability," Evercore analysts said.
(Reporting by Supantha Mukherjee and Jasmine I S in Bengaluru; editing by
Patrick Graham)
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