, Wall Street is expecting that Uber will show a similarly strong quarter as the competitive landscape cools down for both ride-sharing companies.
"In the US, we believe competitive intensity is easing somewhat, evidenced by Lyft's recent proclamation of sooner than expected profitability, with less coupons and discounting as a driver," wrote Youssef Squali, an analyst at SunTrust Robinson Humphrey, in a recent note. In addition, ride fees are set to generally increase going forward, meaning that ridesharing can be a growing and profitable business, wrote Tom White from D.A. Davidson.
This should offer a boost to Uber's revenue, which analysts estimate will be $3.9 billion in the quarter, and may also lead to a smaller loss on the bottom line. Analysts are expecting a loss of $1.
Even though Uber has underperformed in the market since its IPO, Wall Street remains largely bullish on the company. Uber has 26 "buy" ratings, 12 "hold" ratings, and only one "sell" rating, according to Bloomberg data. 1. Bank of America Merrill Lynch: "Uber will benefit from decreasing competitive intensity in U.S. ridesharing"
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Source: WSJ - 🏆 98. / 63 Read more »