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Earnings Ahead: Uber and Lyft Set for Major Report

Uber and Lyft are on the verge of reporting their Q1 2025 earnings this week, with Uber expected to turn profitable while Lyft sees flat EPS. Investors are keenly watching these earnings as both companies navigate a rapidly changing ride-sharing landscape.

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AI Rating:   7
In the upcoming earnings reports for Uber and Lyft, professional investors should focus on key performance indicators such as Earnings Per Share (EPS) and revenue metrics. Lyft is expected to report flat EPS with gross bookings growth of 10-14% while Uber anticipates an earnings turnaround to $0.51 per share from a previous loss, with projected gross bookings growth of 17-21%. This improvement in Uber's EPS indicates a positive shift in profitability and operational efficiency, following a turbulent phase characterized by consistent losses prior to 2023. Moreover, both companies have reached a scale that enables profitability, which is essential for building investor confidence moving forward. Uber's diversified portfolio, bolstered by its successful Uber Eats business and strategic partnerships in the robotaxi domain, sets it apart from Lyft, which remains more dependent on ridesharing. The market's keen eye on robotaxi developments in the upcoming reports reflects the transitional nature of the ride-sharing market. As mentioned, Uber has embraced partnerships with prominent technology firms, showcasing their proactive approach to maintaining market leadership. Investors can view these growth drivers positively, particularly given the historical tendency for both companies to outperform analysts' expectations—Uber achieved an impressive 43% market performance year-to-date, greatly exceeding Lyft's modest growth of 0.5%. Given these insights, Uber presents a more appealing investment prospect compared to Lyft, although both companies maintain robust fundamentals. Overall, short-term traders may want to consider the implied volatility of upcoming earnings announcements, particularly Lyft's anticipated 15.6% stock move, while long-term investors should closely watch how each company adapts to the evolving landscape of autonomous delivery and rideshare services.
Stocks:  UBER LYFT