Air travelers wait for a big sharing ride near the Uber sign at Los Angeles International Airport (LAX) on August 20, 2020 in Los Angeles, California.
Mario Tama | Getty Images
Free economy stocks such as Uber, Lyft, DoorDash and Airbnb popped this week after companies published quarterly reports that showed strong demand.
Lyft finished the week up 46%, and Uber jumped 37%, the best week ever for both stocks. DoorDash closed 15% higher, and Airbnb stock rose for the third week in a row, up 5.5%.
Investors are encouraged to see that financial services firms in the consumer market are, for now, bearing the inflationary pressures that have rocked other sectors, such as retail. It may also be an indication that grocery delivery platform Instacart could pose a stronger IPO. Instacart filed for a confidential initial public offering in May, although it had to lower its market valuation.
Dara Khosrowshahi, CEO of Uber, said he has noticed a change in consumer spending from retail to services. It may even have helped inflation. Khosrowshahi said Uber has seen an increase in the number of drivers on the platform as consumers look for other ways to increase their income.
Meanwhile, Airbnb has the highest level of bookings ever. DoorDash said it had a record number of orders. Lyft, which continues to suffer a net loss, posted the highest earnings ever adjusted.
These are some of the headlines:
- Uber reported revenue of $8.07 billion, well above analysts’ estimates of $7.39 billion. Khosrowshahi said driver participation reached its highest post-pandemic levels during the quarter.
- Lyft reported a 16% increase in active passengers, to 19.9 million, the highest since the pandemic began.
- DoorDash posted better-than-expected revenue. Although it posted a larger loss per share than expected, the company posted a 23% growth in the total number of orders delivered.
- Airbnb shares rose for the third week in a row. The company on Tuesday reported higher-than-expected earnings and revenue in line with expectations for the second quarter. Airbnb said the total number of nights booked for cross-border travel exceeded pre-pandemic levels and doubled compared to the same period last year.