11–20 of 516 posts
No doubt they are struggling to show a path to profitability, but $3.9B of that is a one-time recognition of all their stock comp which makes look much worse than it should (Assuming that a 1.3B loss is more "normal")
Biased headline, biased article. 1. 3.9 Bil was a one time cost 2. 1.3 Bil is not almost double 880 Mil. I mean that's just egregious.
That doesn't mean it isn't a loss?
Uber and lyft are both on the way down. The price at which they need to operate to be profitable is not a price that most americans are ready to pay. As simple as that. For now they delay this reality by subsidizing rides in order to generate business. In some cities like San Francisco, most incentives were removed and among my friends we all stopped using Uber (unless we really have to). It simply became way too exp…
Apparently Lyft upped its guidance, and Uber stock took off today; it was up 8.25% percent from yesterday. As of right now, it's now down 10% off closing to 38.66, a value it hasn't had since... last Wednesday morning.
Disappointing if you're a holder, sure, but not as catastrophic as you'd think if you only read this news.
(To the extent I have bias here, it is bias against trying to judge stock performance only by reading about its massive jumps up or down. Uber I'm not a particular fan of but I can't say I'm all that personally passionately against it either. I don't mean this as attack or defense, only a perspective on the news that I think is closer to a truth.)
Uber was up for the day by 8%, too. Down 10% after hours: https://www.nasdaq.com/symbol/uber/after-hours
Uber laying off 400 two weeks ago felt like a leading indicator that they were going to deliver a weak quarter, I'm surprised this wasn't priced into the stock (which is now down ~10% after hours after finishing today's session at +8%). What was the market expecting? (1) https://www.nytimes.com/2019/07/29/technology/uber-job-cuts....
(kidding)
Uber and lyft are both on the way down. The price at which they need to operate to be profitable is not a price that most americans are ready to pay. As simple as that. For now they delay this reality by subsidizing rides in order to generate business. In some cities like San Francisco, most incentives were removed and among my friends we all stopped using Uber (unless we really have to). It simply became way too exp…
Could you elaborate how much were fares before they removed subsidies and after?
I will say though, the huge benefit now is their rewards have a "price protection" [1] for some tiers that allow for a cap on that ride price, so I think it can no longer go above $10.99 or something. That has helped a ton from it getting higher. But that's only available for some of the higher tiers in their rewards program, I believe.
[1] https://help.uber.com/riders/article/price-protection-on-a-r...
Uber and lyft are both on the way down. The price at which they need to operate to be profitable is not a price that most americans are ready to pay. As simple as that. For now they delay this reality by subsidizing rides in order to generate business. In some cities like San Francisco, most incentives were removed and among my friends we all stopped using Uber (unless we really have to). It simply became way too exp…
Could you elaborate how much were fares before they removed subsidies and after?