Aug 07, 2019
Positive Earnings Boost Lyft As Uber Also Reports
The stock price of the ridesharing company, Lyft, traded 4% higher after reporting stronger than expected earnings. To put it into perspective, Lyft does most of its rides in the US, compared to Uber which operates rides globally. Since these companies have the same business model, their stock prices are strongly correlated. That is, as a result of the positive Lyft earnings report, the stock of Uber also traded higher and is now up by 3.9% percent.
If you are interested in trading ridesharing stocks, such as Lyft and Uber, it is recommended to focus on three main numbers. These include the revenue number, the number of riders as well as the revenue per rider. Lyft beat expectations for all of these numbers, reporting revenue of $867 million, the number of riders at 21.8 million and $39.77 revenue per rider.
The Lyft stock could open at around $62, with a medium-term target of $66, at the open of the market today. Meanwhile, with Uber expected to release their earnings today after market closes, investors could be waiting for this report before jumping into the markets as there could be added upside confirmation. If the earnings report by Uber is positive, this is likely to trigger massive upward momentum in both the stocks of Lyft and Uber.