ReportWire

Tag: Taxi/Limousine Services

  • Uber and Lyft shares rallied in 2023 but may not go much higher, analysts say

    Uber and Lyft shares rallied in 2023 but may not go much higher, analysts say

    Shares of Uber Technologies Inc. and the ride-hailing giant’s smaller rival, Lyft Inc., have sprinted higher this year. But analysts on Friday suggested there might not be much left in the tank for either stock heading into 2024.

    Nomura analysts Anindya Das and Masataka Kunugimoto on Friday downgraded Uber
    UBER,
    -2.49%
    to a neutral rating from buy, arguing that most of the things that could drive the stock higher are already baked into the price. They also downgraded Lyft
    LYFT,
    -3.54%
    to their equivalent of a sell rating from buy, saying the company failed to fully capitalize on the travel industry’s post-pandemic recovery.

    Shares of Uber, which closed out the year up 142%, were down 2.5% on Friday. Lyft’s stock gave up 3.4% and finished 2023 up 34.8%.

    Uber, the analysts said, had managed to grow this year while occasionally turning a profit, and consolidated its grip on the ride-sharing markets in the U.S. and Canada. Meanwhile, Lyft, they said, had stumbled in its efforts to take advantage of the travel rebound after pandemic restrictions eased, cutting more staff this year after doing the same in 2022.

    After years of losing money, they said Uber’s stronger financials this year allowed it to refinance its debt at a lower interest rate and extend the terms of that debt. They noted the company recently joined the S&P 500 Index
    SPX
    and that the market is expecting more stock buybacks from the company, as well as interest-rate cuts by the Federal Reserve next year.

    “Thus, most of the milestones and catalysts that we were anticipating to boost Uber’s stock value have been largely met,” they said.

    They added: “At this time, we think most of the catalysts for the stock are already priced in, and Uber is fairly valued at the current price. We therefore downgrade it to Neutral from Buy.”

    Lyft has tried to cut its prices to compete with Uber, and has held off on expanding into areas like food delivery. But as travel demand settles, the analysts suggested, the advantages would still flow to its archrival.

    “We expect 2024 to be more of a ‘normal’ year, in terms of people’s propensity to travel,” the analysts said. “Once the current rebound in travel subsides, we think Lyft’s subscale market positioning, and lack of cross-selling opportunities (unlike Uber), could constrain topline growth for the company.”

    “Offsetting a more moderate pace of ridership growth by raising prices would be challenging for Lyft,” they said, “as we think it would be bound by the actions of its larger and more profitable peer, Uber.”

    Source link

  • Disney and other entertainment giants report after upbeat results from peers, but investors are getting harsher on companies that don’t deliver

    Disney and other entertainment giants report after upbeat results from peers, but investors are getting harsher on companies that don’t deliver

    Last month, Netflix Inc.
    NFLX,
    +1.80%
    stock jumped after it reported big subscriber gains and hiked prices. Last week, results from Paramount Global
    PARA,
    +15.44%
    beat expectations, sending shares of the streaming and entertainment giant on its best percentage gain in nearly a year, and Roku Inc.
    ROKU,
    +8.58%
    also offered an upbeat outlook.

    This week — as Walt Disney Co., Warner Bros. Discovery Inc., Lions Gate Entertainment Corp. and AMC Entertainment Holdings Inc. all report results — we’ll get a deeper sense of whether the entertainment industry is starting to make investors happy again, even if they make viewers less happy in the process.

    Those companies will report as the streaming industry, under pressure from investors to turn a better profit, consolidates and as platforms charge more to watch and cram more advertisements into shows and films.

    Cable TV providers and movie theaters, too, are trying to figure out a way forward as streaming becomes more prevalent. Even as Hollywood’s writers come back to work following a strike that shut down production, its actors are still striking, with issues surrounding AI usage to portray actors, streaming payments and other issues in the balance.

    Disney
    DIS,
    +2.14%    ,
    which reports results on Wednesday, faces questions about losses at Disney+, efforts to cut billions in costs and stamp out streaming-account sharing, its planned takeover of the streaming platform Hulu and speculation over which of its large media properties it might sell. BofA analysts recently estimated that ESPN, which Disney has leaned on for years, could be worth around $24 billion. Meanwhile, activist investor Nelson Peltz has been angling for seats on Disney’s board, and its fight with Florida Gov. Ron DeSantis continues.

    Elsewhere, Warner Bros. Discovery
    WBD,
    +6.23%
    — the parent company of the streaming service Max, Warner Bros. Pictures, Discovery Channel, CNN and other channels — reports on Wednesday, as it tries to turn its reserves of intellectual property into franchise films. Meme-stock theater chain AMC
    AMC,
    +2.19%    ,
    which also reports Wednesday, following upbeat results from rival Cinemark Holdings Inc.
    CNK,
    -2.43%    .

    Sales at the theater chains have been lifted in recent months by “Barbie” and “Oppenheimer.” While both were original films, analysts have said the avalanche of sequels and remakes in theaters is unlikely to stop.

    The pressure to boost profits will ultimately affect what TV shows and films get made, and what viewers actually consume. And a report from FactSet on Friday found that investors have been more unkind than usual to companies whose results come up short of Wall Street’s expectations.

    That report found that through the third-quarter earnings season, companies whose earnings miss expectations have seen an average stock-price drop of 5.2% during the two days before the publication of the results through the two days after. If that figure holds, it would be the stock market’s biggest adverse reaction to an earnings miss since the second quarter of 2011.

    This week in earnings

    Among S&P 500 companies, 55 including one from the Dow, will report quarterly results during the week ahead.

    EV startup Rivian Automotive Inc.
    RIVN,
    +0.68%
    reports amid concerns about EV demand. Following Ticketmaster parent Live Nation Entertainment Inc.’s
    LYV,
    +3.53%
    blowout quarterly results last week, results from Madison Square Garden Entertainment Corp.
    MSGE,
    +1.03%
    will shed more light on people’s appetites for live entertainment. Results from digital marketing platform Klaviyo Inc.
    KVYO,
    +3.86%
    and fast-casual chain Cava Group Inc.
    CAVA,
    +5.49%
    — both recent IPOS — will offer a deeper look at digital ad budgets and a competitive restaurant backdrop, respectively.

    The New York Times Co.
    NYT,
    +0.91%
    also reports during the week. So do Planet Fitness Inc.
    PLNT,
    -0.09%    ,
    Gilead Sciences
    GILD,
    +0.44%    ,
    eBay Inc.
    EBAY,
    +3.98%
    and Take-Two Interactive Software
    TTWO,
    +1.03%    .

    The call to put on your calendar

    Cybersecurity drama: Cyberattacks are getting more severe, and customers are starting to feel their effects more acutely. Against that backdrop, casino and resort operator MGM Resorts International
    MGM,
    +5.27%
    will report quarterly results on Wednesday, in the wake of a cyberattack that took down some of its systems. MGM has said that attack, which the company disclosed in September, would cost them roughly $100 million.

    The company said the fallout of that attack — which disrupted hotel bookings and put hotels on manual operations, resulting in long lines — was largely contained to September. But the SEC last week accused software company SolarWinds Corp.
    SWI,
    +1.74%
    of failing to disclose its purported cybersecurity vulnerabilities, potentially leaving other companies wondering whether they’re vulnerable to similar legal action.

    The numbers to watch

    The gig economy and delivery demand: Rival ride-hailing platforms Uber Technologies Inc. and Lyft Inc. report results on Tuesday and Wednesday, respectively. Maplebear Inc.
    CART,
    +0.94%    ,
    better known as the grocery-delivery platform Instacart, also reports on Wednesday.

    Analysts have been kinder to Uber
    UBER,
    +2.73%    ,
    the larger of the two ride-hailing companies. But Lyft has tried to cut its prices and roll out new services, including one that tries to match women and non-binary riders and drivers. The financials from all three companies will land after strong results from food-delivery platform DoorDash Inc.
    DASH,
    +5.35%    ,
    which has expanded its services into retail an effort to compete with Instacart and other delivery providers. And they’ll fill in the picture of rider demand following the back-to-school season and a bigger push to get workers back into offices.

    Beyond ride-sharing, results from Uber and Instacart will narrow the lens on delivery demand, as some analysts question whether higher prices for basics and the return of student-loan payments might make food delivery more dispensable. Analysts also seem likely to zero on in those companies’ high-margin digital-ad businesses, as more e-commerce platforms try to turn their apps and websites into online billboard space.

    Source link

  • Apple says it will fix app software problems blamed for making iPhone 15 models too hot to handle

    Apple says it will fix app software problems blamed for making iPhone 15 models too hot to handle

    Apple Inc. is blaming a software bug and other issues tied to popular apps such as Instagram and Uber for causing its recently released iPhone 15 models to heat up and spark complaints about becoming too hot to handle.

    The Cupertino, Calif., company
    AAPL,
    +0.30%
    said Saturday that it is working on an update to the iOS17 system that powers the iPhone 15 lineup to prevent the devices from becoming uncomfortably hot and is working with apps that are running in ways “causing them to overload the system.”

    Instagram, owned by Meta Platforms
    META,
    -1.23%    ,
    modified its social media app earlier this week to prevent it from heating up the device on the latest iPhone operating system.

    Read: The Magnificent Seven could be considered the messy seven after a ‘meh’ third quarter

    Uber
    UBER,
    -0.33%
    and other apps such as the video game Asphalt 9 are still in the process of rolling out their updates, Apple said. It didn’t specify a timeline for when its own software fix would be issued but said no safety issues should prevent iPhone 15 owners from using their devices while awaiting the update.

    “We have identified a few conditions which can cause iPhone to run warmer than expected,” Apple in a short statement provided to The Associated Press after media reports detailed overheating complaints that are peppering online message boards.

    The Wall Street Journal amplified the worries in a story citing the overheating problem in its own testing of the new iPhones, which went on sale a week ago.

    Read: Here’s what Apple’s iPhone 15 says about the world

    It’s not unusual for new iPhones to get uncomfortably warm during the first few days of use or when they are being restored with backup information stored in the cloud — issues that Apple already flags for users. The devices also can get hot when using apps such as video games and augmented reality technology that require a lot of processing power, but the heating issues with the iPhone 15 models have gone beyond those typical situations.

    In its acknowledgement, Apple stressed that the trouble isn’t related to the sleek titanium casing that houses the high-end iPhone 15 Pro and iPhone 15 Pro Max instead of the stainless steel used on older smartphones.

    Apple also dismissed speculation that the overheating problem in the new models might be tied to a shift from its proprietary Lightning charging cable to the more widely used USB-C port that allowed it to comply with a mandate issued by European regulators.

    Although Apple expressed confidence that the overheating issue can be quickly fixed with the upcoming software updates, the problem still could dampen sales of its marquee product at time when the company has faced three consecutive quarters of year-over-year declines in overall sales.

    The downturn has affected iPhone sales, which fell by a combined 4% in the nine months covered by Apple’s past three fiscal quarters compared with a year earlier.

    Apple is trying to pump up its sales in part by raising the starting price for its top-of-the-line iPhone 15 Pro Max to $1,200, an increase of $100, or 9%, from last year’s comparable model.

    Investor worries about Apple’s uncharacteristic sales funk already have wiped out more than $300 billion in shareholder wealth since the company’s market value closed at $3 trillion for the first time in late June.

    Source link

  • XPeng Stock Surges on Plan to Buy DiDi’s Smart Vehicle Unit

    XPeng Stock Surges on Plan to Buy DiDi’s Smart Vehicle Unit

    This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.

    https://www.barrons.com/articles/xpeng-hong-kong-stock-price-didi-evs-ca20a71d

    • Order Reprints
    • Print Article

    A lot is going on inside


    XPeng


    these days. Investors have appeared to like it all.

    Source link

  • Court Rules Against Uber. It’s a Victory for Drivers.

    Court Rules Against Uber. It’s a Victory for Drivers.

    This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.

    https://www.barrons.com/articles/uber-doordash-stocks-court-victory-drivers-519061c6

    • Order Reprints
    • Print Article

    Source link

  • Lyft stock sinks as forecast falls short of estimates, while new CEO takes aim at Uber

    Lyft stock sinks as forecast falls short of estimates, while new CEO takes aim at Uber

    Lyft Inc. on Thursday reported first-quarter results that beat expectations, but a forecast that fell just shy of analysts’ estimates weighed on the company’s stock.

    Lyft shares LYFT fell 15% after hours. They had dropped 1.8% in the regular session to close at $10.69 after a six-day positive streak. 

    Lyft forecast second-quarter revenue of…

    Source link

  • Chegg, Arista, Uber, Pfizer, DuPont, and More Stock Market Movers

    Chegg, Arista, Uber, Pfizer, DuPont, and More Stock Market Movers

    This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.

    https://www.barrons.com/articles/stock-market-movers-7c17b0b6

    • Order Reprints
    • Print Article
    [ad_2]
    Source link

  • New Lyft CEO: ‘I don’t think of this as just an Uber battle. It’s a battle against staying at home.’

    New Lyft CEO: ‘I don’t think of this as just an Uber battle. It’s a battle against staying at home.’

    Lyft Inc.’s incoming Chief Executive David Risher looks at the ride-hailing company’s competition with Uber Technologies Inc. as a way to keep both companies “honest and focused,” he said in an interview with MarketWatch on Monday.

    “There’s lots of two-service dynamics, or market dynamics, like Coke and Pepsi, or the Nasdaq and the [New York Stock Exchange],” Risher said. “You want that level of competition.”

    Lyft
    LYFT,
    -2.74%    ,
    which has lost $2.2 billion, or about a third, of its market capitalization since it reported earnings last month, announced Monday that board director Risher will take over as CEO of the struggling company. He will replace company co-founder Logan Green, who will become chairman of the board.

    Lyft is competing with much larger rival Uber
    UBER,
    -0.42%    ,
    which has gained ride-hailing market share in recent years at the expense of Lyft, according to YipitData, which says Uber now has about 74% of U.S. market share vs. Lyft’s 26%. Risher declined to say much about how he would differentiate himself from the outgoing CEO, but he indicated that Lyft will not attempt to compete with Uber in other services, such as delivery.

    “I don’t want to get in a car with someone that’s just delivered a pizza,” he said.

    “At some point, I don’t think of this as just an Uber battle,” he said. “It’s a battle against staying at home. How do we get people out? How do we get them playing and working together?”

    Lyft’s new top executive was for the past 13 years CEO of Worldreader, a nonprofit that focuses on children’s literacy through digital reading. Risher said because of that, he’s familiar with “doing more with less… you have to be more efficient.”

    Risher will receive a signing bonus of $3.25 million and have an annual salary of $725,000, according to Lyft’s filing with the Securities and Exchange Commission on Monday. He confirmed to MarketWatch that he intends to donate $3 million of that signing bonus to Worldreader.

    “I told the board it’s very important to me that Worldreader become stronger instead of becoming weaker,” Risher said.

    Risher is also active in efforts to encourage wealthy philanthropists to give away their money faster. He and his wife, Jennifer Risher, launched a group called Half My DAF in 2020 that aims to move money out of donor-advised funds and into the hands of working charities more quickly.

    “My wife and I do that on the side,” Risher said. “For a long time, I’ve been a purpose-driven leader. But Lyft is my No. 1 focus.”

    Before leading Worldreader, Risher was an early employee of Amazon.com Inc.
    AMZN,
    -0.09%    ,
    becoming its first head of product and head of U.S. retail, as well as a general manager at Microsoft Corp.
    MSFT,
    -1.49%    .
    He said that experience gives him an “understanding of competition.”

    He said Lyft will compete by focusing on customers and drivers, such as making sure drivers are picking up customers on time. He said there won’t be much difference in the company’s stance on treating drivers as independent contractors when he takes over.

    Lyft, like Uber, has been under pressure from investors to become profitable. The way to get there is through making sure to address it from both the “cost side and the volume side,” Risher said.

    Risher officially takes the helm on April 17. Like Green, co-founder and President John Zimmer also will relinquish a role in day-to-day operations, but will continue as vice chair of the board.

    MarketWatch staff writer Leslie Albrecht contributed to this article.

    Source link

  • Lyft brings in new CEO, pushing co-founders from helm after stock’s plunge

    Lyft brings in new CEO, pushing co-founders from helm after stock’s plunge

    Lyft Inc. is bringing in a new chief executive and removing its co-founders from running the ride-hailing company on a day-to-day basis, sending shares more than 3% higher in after-hours trading Monday.

    Lyft
    LYFT,
    -2.74%
    announced after markets closed Monday that board member David Risher will take over as CEO, replacing co-founder Logan Green. Green and Lyft’s other active co-founder — John Zimmer, who had been serving as president — will remain on the company’s board as chair and vice chair respectively, but not actively participate in running the company.

    “I’m honored and humbled that Logan, John, and the board have trusted me to lead Lyft,” Risher said in a letter to employees. “And I’ll start by saying this: I want Lyft to lead, and I’m thrilled to lead Lyft.”

    Risher worked at Microsoft Corp.
    MSFT,
    -1.49%
    in the 1990s before becoming employee No. 37 at Amazon.com Inc.
    AMZN,
    -0.09%    ,
    according to Lyft’s announcement, which noted that he received a permanent thank you on the Amazon website from founder and former chief executive Jeff Bezos upon his departure in 2002. For the past 13 years, he has been in charge of a nonprofit focused on childhood literacy called Worldreader.

    “Across all three organizations, I learned of the power of leading with purpose,” he wrote to employees. “Each organization derived tremendous energy through a singleness of purpose. It’s what attracted and retained great people, allowed us to make focused decisions and inspired our customers.”

    In an interview with The Wall Street Journal, Risher — who has been on Lyft’s board since 2021 — admitted that Lyft faces competitive issues, seemingly referencing Uber Technologies Inc.
    UBER,
    -0.42%    .
    He mentioned “a very aggressive — very aggressive — competitor,” while adding, “I think being a strong No. 2 is a good place to be.”

    Lyft shares lost more than a third of their value in a single session in February after Green and Zimmer provided a forecast that missed expectations in what one analyst called “a debacle for the ages.” Monday’s announcement reiterated Lyft’s first-quarter guidance and said Lyft expects to report quarterly results in early May.

    D.A. Davidson analyst Tom White told MarketWatch on Monday afternoon that the change at the top could be “a potential model positive.”

    “A new leader with broader range of experiences could signal increased willingness to broaden Lyft’s strategic aperture a bit as it relates to other possible adjacent products (delivery?), partners, or ways to create value,” he wrote in an email.

    Green and Zimmer began developing the company nearly 15 years ago, and launched the service in 2012, according to their separate letters to employees. They have jointly led the company since, including through a 2019 initial public offering that gave them special shares with stronger voting power.

    From 2019: 5 things to know about the Lyft IPO

    “To say I have loved leading Lyft is an understatement,” Green wrote in his letter to employees. “To say that I will miss working alongside you and this incredible team every day doesn’t even come close. This was an adventure of a lifetime, and I’ve loved every minute of it — the sweetness of the highs, and the pain of the lows that make you appreciate the next win that much more. I’m eternally grateful to this team.” 

    Lyft shares sold for $72 in its IPO, and closed Monday at $9.60 before moving closer to $10 in the extended session. Lyft stock has plummeted nearly 75% in the past 12 months, dropping 74.4% as the S&P 500 index
    SPX,
    +0.16%
    has declined 12.6%.

    Source link

  • China Sets New Rules for Overseas IPOs. What It Means for DiDi, Alibaba, and Others.

    China Sets New Rules for Overseas IPOs. What It Means for DiDi, Alibaba, and Others.

    China has announced new rules on overseas IPOs, potentially sparking the resumption of Chinese companies listing in New York.

    Under the new rules, the China Securities Regulatory Commission (CSRC) will vet any overseas listing applications, effective from March 31. The regulator has the power to block such IPOs, and the rules make clear listings must not endanger national security.

    Source link