Uber Technologies Inc. and Lyft Inc. were expected to lose some money after their initial offer, but for the time being, the two companies are losing more than just cash.
made the revenue debuting, they have both lost the same two top executives ̵[ads1]1; their top operations manager and chief marketers. Uber announced the departure of the COO and CMO just one week after reporting revenue for the first time, while Lyft's COO surprisingly left in late July, after the CMO walked out the door. Uber did not stop there, losing three directors since the IPO and cutting about a quarter of its marketing staff.
In the meantime, it is possible that Uber and Lyft profits can be shown in how much customers pay. Both companies hinted in their first revenue report that their price war could end, and at least one analyst said prices seemed to go up for Uber in areas where smaller rival Lyft is strong, as a way to attract drivers who look for larger payments.
Reductions in personnel and rising prices for services are likely necessary for Uber and Lyft to ever approach profitability, as MarketWatch's Therese Poletti pointed out when they went public. Uber is expected to report more than $ 3 billion in quarterly losses Thursday as it swallows the bitter stock-based compensation game from its IPO drills. Lyft acknowledged these costs in its previous earnings report, so the quarterly losses are expected to be under half a billion dollars – but not much less – in a Wednesday report.
See also: Uber received more scrutiny from SEC than Lyft during IPO process
However, the losses investors care most about are in the two companies' stock prices, which have closed higher than their respective IPOs prices in just two trading sessions so far for each company. As of Friday afternoon, Uber was trading more than 10% lower than the $ 45 IPO price, while Lyft pulled its $ 72 starting price by more than 18%
In addition to the two young companies driving, it will next week be slower than the last two, with one Dow Jones Industrial Average
component and about 65 S&P 500
companies expected to disclose their quarterly results, according to FactSet.
Disney & # 39; s & # 39; Avengers: Endgame & # 39; windfall
The simple Dow component of the week's docket is The Walt Disney Co.
which will serve as a contrast to the losing businesses in Uber and Lyft. Disney is expected to show off about $ 3 billion in adjusted profits Tuesday afternoon as it raises money from the biggest box office of all time, "Avengers: Endgame," as well as the opening of "Toy Story 4." The film business is expected to report an operating profit of more than $ 1 billion.
CEO Robert Iger is likely to continue to talk about Disney's new streaming service, scheduled to launch in November, highlighting the first quarter with full results from the big acquisition from Fox Corp.
. The company's theme park business also gets a boost in sales and profits from a ticket price increase that came into effect in the previous quarter.
Fox will drop revenue Wednesday, while CBS Corp.
and Viacom Inc.
is scheduled for earnings on Thursday as the two companies approach an expected merger. Streaming platform company Roku Inc.
will also report earnings on Thursday, similar to AMC Entertainment Holding Inc.
AMC, + 3.20%
Also report this week
• Following results from all Big Tech companies over the past two weeks, the coming week will be dominated by Internet companies and video game publishers. Following Electronic Arts Inc.
reported last week, together with Zynga Inc.
Take Two Interactive Corp.
and Activision Blizzard Inc.
will follow on Monday and Thursday respectively. Among web name reporting is IAC Interactive Corp.
and its spinoff, Match Group Inc.
Bookings Holdings Inc.
YELP, + 1.17%
Zillow Group Inc.
and Overstock.com Inc.
• After the huge flood of results early in each quarter, retail companies are turning their attention to the spotlight, which begins next week. CVS Health Corp.
CVS, + 0.61%
Costco Wholesale Corp.
and Office Depot Inc.
are all expected to report earnings on Thursday.
• Kraft Heinz Co.
has been silent on the revenue front since a terrible report that contained news of an SEC investigation in February but is expected to report revenue for the first half on Thursday. Fellow with food supplier Blue Apron Inc.
is scheduled to report Tuesday. The pot company Cronos Group Inc.
CRON, + 8.72%
stands on the boat for Thursday.