It was a quick turn. Investors are spreading from mild enthusiasm to driving to question whether the business model makes sense.
Friday's shares were $ 42, down 7% from their original $ 45 bid.
The $ 54 warehouse is 25% below the $ 72 march price.
The issue: the two promises the pair can draw to boost profit cuts and raise prices – could hurt growth, writes Davidson analyst Tom White. This marks a break with the pre-IPO mindset, as investors focused more on the large market and less on profitability. Both Uber and Lyft are mired in red ink. Uber lost $ 1 billion in the first quarter, and the smaller lift expects a $ 1.1 billion loss this year.
"Over the past few days, we've seen much more interest from investors about the unit's economy for equestrian sports," wrote White. "At a high level, we believe the market breaks to understand the interplay between 1) the key handles to achieve profitability in equestrian sports, and 2) to pull these levers can limit the addressable market opportunity."
Most people believe that Uber deserves a prize for Lyft because it is larger and has a global scale, overseas bets, and companies like Uber Eats. White is not so safe. Uber revenue growth was reduced to 20% in the first quarter from 69% in March-2018 quarter. Lift sales increased by 95% in the first quarter. White is not entirely negative. He has a Buy on Lift with a price of $ 72 and a neutral on Uber with a goal of $ 53.
Canadian markets are closed under Victoria Day compliance.
The Federal Reserve Bank of Chicago publishes its National Activity Index for April. Consensus estimates are
for a 0.08 reading, up from March -0.15.
hold their annual shareholders in New York and Boston respectively.
host to their annual meeting of shareholders. It will just be online.
The three-day UBS Global Healthcare Conference starts in New York.
are some of the companies that are expected to present.
p. and Toll Brothers release quarterly results.
Chipotle Mexican Grill
hold annual shareholder meetings in Newport Beach, California and Chicago respectively.
The National Association of Realtors reports existing housing sales data for April. Economists forecast a seasonally adjusted annual rate of 5.3 million, up 2% from 5.3 million in March.
Advance Auto Parts
Canadian Imperial Bank of Commerce
Lowes Target and reports income.
The Federal Open Market Committee publishes minutes from its monetary policy meeting that ended earlier this month.
holds its annual meeting of shareholders in Seattle.
host their annual shareholder meetings online.
Thermo Fisher Scientific
and LPL Financial Holdings host their analyst days in New York.
Hewlett Packard Enterprise
Delete quarterly results.
The folk print catalog releases newly created sales data for April. Expectations are for a seasonally adjusted annual rate of 678,000 new detached houses, lower than March of 692,000.
reports its US compound purchasing manager's index for May. Consensus estimates are for a 53 reading, similar to April data.
The Department of Labor reports initial unemployed claims for the week ending May 18. Expectations are for 215,000 claims. The four-week moving average is 225,000.
holds a special shareholder meeting in Wilmington, Del., to approve a shareholding. The company seeks a reverse stock split ratio of not less than 2 for 5 and no greater than 1 for 3.
hold their annual meetings with shareholders in New York and Purchase, N.Y., respectively
Whirlpool has an investor day in New York.
hold a conference call to discuss earnings.
The Census Bureau publishes the Sustainable Goods Report for April. New orders for durable goods are down 2% after having increased 2.8% in March. With the exception of transport equipment, durable orders are expected to rise by 0.3%, roughly equal to March.
– Robert Teitelman and Dan lam