Ride-sharing companies Uber Technologies, Inc. (UBER) and Lyft, Inc. (LYFT) are scheduled to report earnings this week, following what has been a dismal first quarter due to the coronavirus pandemic. Both are burning through cash at a rapid pace, with neither posting a profit since becoming public companies.
Uber is scheduled to report on Wednesday, with Lyft following a day later.
Financial pressures are starting to take their toll, with Uber furloughing 20% of its workforce while Lyft is shedding 17%. Surprisingly, analysts have maintained high ratings for both companies as they expect business to return in coming quarters.
Since going public last May, Uber has maintained a trading range between $36 and $45. A June breakout posted an all-time high at $47.08 before turning tail in a failure swing that broke range support in August. The subsequent downtrend continued into November, when the stock posted a tradable low at $27.55 before gathering strength into February 2020.
Uber shares slid more than 3% on Monday to close at $27.42, while the S&P 500 was largely unchanged.