Lyft's Huge Earnings Beat Could Be a Buy Signal For Uber

Video credit: The Street
Published on August 8, 2019 - Duration: 02:12s

Lyft's Huge Earnings Beat Could Be a Buy Signal For Uber

If Lyft's huge earnings beat and guidance raise Wednesday afternoon is any indication of how Uber will do on its earnings report, you'd want to buy Uber.

RealMoney contributor Sarge Guilfoyle thinks Lyft is indeed indicating Uber is in a healthy place.

First off, here's what Lyft reported.

For the second quarter, Lyft posted an adjusted net loss per share of 68 cents, narrower than Wall Street's estimate of $1.07.

In the year-earlier period, Lyft's adjusted loss was $8.37 a share.

Revenue was $867.3 million, up 72% year-over-year and beating analysts' expectations of $809 million.

And the number of active riders rose 41% to 21.8 million, beating the consensus estimate of 20.9 million.

Revenue per active rider was $39.77, up 22%, beating Wall Street's estimate of $38.

For 2019, management guided for an adjusted EBITDA loss of between $850 million to $875 million, better than the previous expectation of a loss of $1.15 billion to $1.18 billion.

It seems the total addressable market for ride-sharing is looking even healthier now, making Uber attractive to Guilfoyle.

"They {Lyft} only have about a 28% market share," said Guilfoyle.

"It's twin sister, Uber, has about a 70% market share.

They held onto that market share.

So while this is good, it implies to me that the overall, the addressable market is improving." He added, "The market is growing and with only two players that looked like they're maintaining market share, there is room to go higher." Premium Pick: Uber Gets an Early Lyft Ready to Retire: The Biggest Threat to Your Retirement?

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