Yahoo Finance Live’s Brian Sozzi breaks down an Evercore ISI analyst’s bullish note on Uber stock.
Lyft stock was downgraded to Hold as the ridesharing company is projected to miss analyst estimates for app downloads amid increased competition with Uber.
Dara Khosrowshahi-led Uber operates in multiple regions and has over the years built a massive food and grocery delivery business, while Lyft has mainly focused on rideshare in the United States. Uber's larger scale, reflected in a $67 billion market cap that is nearly ten times that of its rival, has also allowed it to spend more on incentives to attract drivers at a time when the industry recovery has flooded rideshare firms with demand. While Lyft was the first to show glimpses of a profit since rideshare operations began, investors will now focus on adjusted core earnings outlook as the companies have set big targets for 2024 - $5 billion by Uber and $1 billion by Lyft.