Uber Technologies, DoorDash and Lyft each will report earnings Wednesday — offering a test for a food-delivery and ride-hailing market that has outperformed this year. Both Uber stock and DoorDash have rallied to recent record highs while Lyft stock is pacing slightly ahead of the S&P 500.
Uber is up first, due to publish its results in the morning. Both DoorDash and Lyft will offer their June quarter results after trading closes.
Here's what investors will be watching:
Uber Stock: Robotaxi Debate Could Overshadow Q2
After slumping to close out 2024, Uber stock has bounced back with a 49% gain so far this year. Shares have pulled back by 6% in July but Uber stock has found support above its 50-day moving average.
Uber stock is up 1.7% at 89.92 in recent trading on the stock market today.
For its June quarter, analysts polled by FactSet expect Uber's revenue will grow 16.6% year over year to $12.47 billion. Earnings are projected to climb 34% to 63 cents per share.
Uber's gross bookings value is forecast to grow 16.2% year over year to $46.42 billion, according to FactSet.
Uber's guidance for the current quarter will also be closely watched after weak July employment data raised questions about the strength of consumer spending. Uber typically provides guidance for gross bookings and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization).
Analysts are currently projecting Uber's gross bookings will grow 15.9% to $47.5 billion for the September quarter, according to FactSet. Adjusted EBITDA is forecast to reach $2.23 billion for Q3.
Slightly Higher Bookings Seen This Year
UBS analyst Stephen Ju upped his price target for Uber stock to 115 from 107 in a client note last week. That reflects slightly higher estimates for gross bookings this year and in 2026, "given that U.S. consumer sentiment and spending has held up through tariff negotiations," Ju wrote.
But after news about Waymo expanding in Dallas hit Uber's stock last week, commentary about autonomous vehicles could overshadow the ride-hailing firm's Q2 results.
"Overall, we believe estimates look reasonable, but at the end of the day investors are primarily focused on anything incremental across its AV partnership base," Stifel analyst Mark Kelley wrote to clients last week.
Investors will be looking for any updates on Uber's Waymo partnerships, along with Uber's planned robotaxi partnership with Lucid and Nuro, Kelley added.
DoorDash Stock: What To Watch For Q2
Meanwhile, a strong rally for DoorDash stock will be put to the test with the company's Q2 results late Wednesday. DoorDash stock is ahead 52.3% year to date.
DoorDash stock is down a fraction in recent trading at 255.79. But shares briefly gained to reach a new intraday record high of 259.87 Tuesday morning.
Analysts expect DoorDash will post earnings of 44 cents per share for the June-ended quarter, according to FactSet. DoorDash lost 38 cents per share during the same period last year.
Meanwhile, sales are projected to increase 20% to $3.16 billion, according to FactSet analyst consensus.
DoorDash is expected to offer guidance for gross order value of about $23.83 billion in the September-ended quarter, according to FactSet.
Evercore ISI analyst Mark Mahaney told clients Sunday that he expects a "modest beat" for DoorDash. He reiterated an outperform call. He cited positive consumer demand trends in third-party data. Mahaney rates DoorDash stock as outperform.
From Feast To Fair Value
Analysts with Jefferies downgraded DoorDash to neutral last month, however, saying the company's rally had changed its valuation from "feast to fair value."
In a recent Q2 earnings preview note, Jefferies analyst John Colantuoni said investors will likely be listening for more details on the strategy behind DoorDash's acquisitions of U.K. delivery-firm Deliveroo and hospitality software firm SevenRooms.
DoorDash announced the $3.9 billion Deliveroo deal and $1.2 billion SevenRooms acquisition just before publishing its first-quarter results in May. In general, DoorDash has been looking to expand its international presence and moving into markets beyond restaurant-based delivery.
Lyft Q2 Due
Uber's smaller rival Lyft is also set to release results late Wednesday. Lyft stock is ahead 12% this year and is ahead 37.5% from 12 months ago. Shares remain well below 2021 highs, however.
Analysts expect Lyft will post adjusted earnings of 24 cents per share, flat from a year earlier. Sales are projected to increase 12% to $1.61 billion, according to FactSet analyst consensus.
Piper Sandler analyst Thomas Champion reiterated an overweight call for Lyft stock in a recent client note. He expects "mid-teens booking growth is doable driven by product initiatives and market growth," though Champion acknowledged investors are more skeptical than not.
Lyft on Monday announced a partnership with Chinese tech giant Baidu to offer robotaxis in Europe. Uber also announced a recent partnership with Baidu and its Apollo Go robotaxi service.
Uber Stock Vs DoorDash Stock Technical Ratings
Heading into its report, DoorDash stock holds a best-possible IBD Composite Rating of 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one.
DoorDash's relative strength line is down a tick from a month ago but remains a strong 94 out of 99.
Meanwhile, Uber stock holds an IBD Composite Rating of 94 out of a best possible 99, according to IBD Stock Checkup. Its Relative Strength rating is 84 out of 99.
Lyft scores weaker. It hold an IBD Composite Rating of 65 out of 99 and a Relative Strength rating of 69.
