![]() Lyft's core net loss clocked in at $114 million. Uber's net income came in at $394 million, a stark win compared to the net loss of $2.6 billion at the same time last year. Though Uber missed on the top line, the company offered a more positive outlook and notched free cash flow. ![]() The company's fourth quarter profit guidance is also an issue, experts say. A quick and dirty comparison to Uber's second quarter last week may help explain the share reversal. The losses have been sustained into Wednesday, with the stock off by 7%. The company's third quarter sales guidance caught investors' attention as well, coming in a couple million dollars ahead of estimates.īut despite the rosy third quarter outlook, Lyft shares turned lower, plunging roughly 6%. Lyft's revenue figures came in line with estimates, despite immense pressure from larger rival Uber ( UBER). ![]() Investors were apparently roped into some initial headline rosiness. 2 ride sharer initially popped 14% after hours on Tuesday immediately following earnings. Lyft ( LYFT) shares fell more than 8% on Wednesday as investors grow impatient while the rideshare app chases competitor Uber ( UBER). Its curious dealings with co-founder and then-CEO Adam Neumann, also raised alarms, including a widely criticized arrangement that had WeWork pay Neumann $5.9 million for use of the word "We" in its name. As potential investors took a closer look at the company's financial documents, they raised concerns over its money-losing model. Once valued as one of the most promising enterprises in the tech world, the company's worth evaporated as it prepared to go public in 2019. The overwhelming losses echo WeWork's earlier run as a startup. WeWork once had a valuation of $47 billion. Its shares have lost roughly 90% of their value this year, beating down its market cap to $105.5 million as of Wednesday afternoon. The grave warning punctuates WeWork's disastrous run as a public company. Management laid out plans to improve liquidity and profitability over the next year. The co-working space provider warned investors that, facing losses and fleeing clients, "substantial doubt exists about the Company’s ability to continue as a going concern," according to its second quarter earnings report. WeWork raised "substantial doubt" about its future existence on Tuesday, adding another twist to a dizzying journey that has marked the company's staggering rise, fall, rebirth and potential imminent collapse. Shares in WeWork ( WE) plunged nearly 40% on Wednesday as the office space provider said it may not be fit to continue operations. WeWork has 'substantial doubt' about its future Its shares ticked higher in premarket trading after its ESPN network signed a landmark sports betting deal with PENN Entertainment ( PENN). The health of the banking sector, as well as inflationary pressures, has played a part in the Federal Reserve's decision making during its rate-hiking campaign.ĭisney ( DIS) is the highlight on the earnings docket, with its after-hours results closely watched for how it will tackle advertising headwinds and escalating streaming losses. Meanwhile, investors continued to digest Moody's downgrade of midsize US banks, a reminder that the problems that roiled the financial world in the spring are not yet in the past. It's another sign that Beijing is struggling to revive demand in the world's second-biggest economy, spurring fears about a prolonged slowdown with global repercussions. With the crucial July US inflation report looming on Thursday, data released Wednesday showed China's consumer sector fell into deflation in July. The S&P 500 ( ^GSPC) slipped 0.7%, while the tech-heavy Nasdaq Composite ( ^IXIC) led the way down, 1.17%. The Dow Jones Industrial Average ( ^DJI) fell 0.54%, or 190 points. Stocks sputtered on Wednesday, as worries lingered on the US banking sector and attention shifted to a key US inflation report in the wake of disappointing Chinese price data.
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