Shares of Uber (NYSE: UBER) revved up in morning trading on Tuesday after the ride-sharing company’s Q3 showing impressed investors. Shares of Uber have tanked by around 30% this year.
The strong showing by Uber has also lifted up stocks of other companies in the gig economy including Uber’s closest competitor, Lyft (LYFT), and online food ordering and delivery company, DoorDash (DASH). Shares of LYFT and DASH were up in morning trading on Tuesday.
Lyft Expects Revenue Growth to Slow Down
Lyft is expected to announce its Q3 results on November 7 and has slowed down on hiring and reduced discretionary spending. The company had stated on its prior quarter earnings call that it did expect its revenue growth to slow down in FY22 from the 36% growth it had achieved last year.
Lyft expects the Q3 contribution margin to be around 55% while adjusted EBITDA is forecasted to range between $55 million to $65 million.
DASH Anticipates Consumer Spending to Soften
DoorDash is expected to announce its Q3 results on November 3. The company has projected its marketplace gross order value (GOV) in Q3 to range between $13 billion and $13.5 billion while adjusted EBITDA is forecasted to come in the range of $25 million to $75 million.
DASH stated in its Q2 press release, “Among other things, our Q3 and 2022 outlook anticipates a softer consumer spending environment in the second half of 2022 than what we experienced in the first half of the year. It also anticipates significant levels of ongoing investment in new verticals and international markets.”
