From Nasdaq:

Ride-hailing companies Uber and Lyft are set to report fourth-quarter earnings. Uber’s earnings are expected to drop by 48% to $0.15 per share, but revenues are expected to increase by 13.2% to $9.75 billion. Lyft, on the other hand, is expected to report earnings of $0.08 per share, representing growth of 111% from the same period last year with revenues expected at $1.22 billion.

RBC Capital Markets believes that the ride-hailing industry is “a picture of health,” with both Uber and Lyft’s pricing moving higher and lower wait times indicating healthy and rationally competitive demand. The firm maintained a Sector Perform rating on Lyft stock and an Outperform rating on Uber, but it believes that Uber’s stock may be getting overpriced.

Uber has outperformed Lyft since their market debuts, with Uber gaining 227% since 2022 and Lyft’s shares being on a long-term decline. RBC Capital Markets analyst Brad Erickson noted that Lyft has been at a noticeable disadvantage due to Uber making more proactive investments in driver supply, but Lyft may now be in a better position to compete on a more level footing, particularly on the West Coast where it has a stronger presence.

Investors will be looking for clear signs that Lyft can maintain share on a rides and bookings basis, while for Uber, better belief in bookings growth is seen as the next hurdle for further stock appreciation. Analysts at RBC Capital Markets maintained their ratings on both companies’ stocks.



Read more: Uber, Lyft Can Hitch A Ride Higher If Q4 Earnings Beat Wall Street Estimates