This year has been the year of tech initial public offerings and two of the biggest ones so far this year have belonged to ride-hailing companies, Uber (UBER) and Lyft (LYFT). The IPOs were highly anticipated but both companies had been disappointed in the reception they got from the market. In fact, both went below their listing prices, but eventually, both stocks have proven to be gainers.
In this regard, it would be interesting to see how the two stocks match up and which of Uber or Lyft could be a better investment in the ride-hailing space.
Uber Technologies (UBER)
First and foremost, Uber (UBER) is a far bigger company when compared to Lyft and has a massive presence in some of the most lucrative markets in the world. Uber’s revenues grew by 14% in the first quarter this year and touched $3.1 billion.
Meanwhile, gross bookings during the quarter saw as much as $14.6 billion. The gross bookings rose by 34%. On top of that, analysts estimate that Uber users are going to spend a jaw-dropping $60 billion this year.
Lyft Inc. (LYFT)
On the other hand, Lyft (LYFT) presents an interesting dilemma for investors. While it is a far smaller operation, with smaller revenues, the company is growing at a fast rate than Uber. In the first quarter of 2019, the company’s revenues grew by as much as 95%.
However, the company projects the revenue growth for the whole year to be in the 52% to 53% range. Additionally, it does not have the added distraction of Uber Eats to contend with. As a conclusion, it needs to be pointed out that while Uber will continue to grow into a behemoth, Lyft can only hope to make smaller dents into its market share. Therefore, Uber may be a stronger company at this point.
Moreover, if Uber can manage to turn Uber Eats into a profitable food delivery business then the company could grow even further.
Tesla Stock Price Makes Smart Recovery; Production, Sales Jump
Tesla stock price has made a recovery, no matter how brief it may be. New light on the company’s production could be a key factor in recent moves for TSLA stock
Tesla Inc (NASDAQ:TSLA) may have had a highly disappointing start to 2019 when it reported shrinking deliveries. Naturally, Tesla stock price dove as well. However, in its latest quarter, the electric car manufacturing generated record-breaking delivery figures. All of a sudden it became a far more attractive proposition for investors.
Key Drivers For Tesla Stock Price
In addition to better delivery data, there are many other factors generating interest on Tesla stock price. It has emerged that Tesla plans to consolidate its position as the leader of the electric car manufacturing industry. The company is ramping up hiring. It is trying to take its production capabilities to higher levels in the coming quarters.
It is important to note that optimism around TSLA stock has been bullish since June. Thus far it has rallied by as much as 35% during the period. The news about the hiring spree from Tesla came after a leaked e-mail. The e-mail mentioned Tesla will hire more workers to ramp up production at its Freemont, California plant.
The push towards higher production started from the record-breaking performance from Tesla in its latest quarter. In addition to that, the presence of the factory in Shanghai will also allow the company to raise production capabilities. It could also help Tesla reach its annual target of 400,00 deliveries.
Earnings Forecast For Tesla
Analysts estimate that the loss per share for 2019 will be $1.68, which is lower than the previous estimate of $1.79. On top of that, analysts have also estimated that Tesla is going to have $5.05 worth of profits per share next year. That is definitely a significant argument in favor of Tesla stock. That being said, other factors like subsidies and geopolitical factors could impact the stock. Investors should be careful about those risks as well.
How Can Tesla (TSLA) Model 3 Deliveries Impact The Stock This Week?
At the beginning of the year, electric car manufacturer Tesla (TSLA Stock Price) seemed to be in turmoil after its sales plunged substantially. Although there have been reports over the past month or so about deliveries picking up significantly, investors will be eagerly awaiting the company’s announcement about the delivery data this week.
Tesla (TSLA Stock Price) is known to release delivery data three days after the end of a quarter. Therefore, the report should be delivered by Wednesday at the latest.
Important Upcoming Model 3 Data
Tesla’s most important model is the Model 3. It’s almost certain that most investors are going to be eager about the delivery numbers. The Model 3 deliveries made up as much as 70% of the total deliveries made over the trailing 1 year period. Analysts believe that the Model 3’s importance within the Tesla stable is going to rise was 51,000. This reflected a staggering 522% year on year rise.
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However, on a quarter to quarter basis, it reflected a 20% decline. It had earlier emerged that the company’s CEO had told the employees that the Model 3 was going to have record deliveries in the quarter and hence, investors are waiting for the data with bated breath.
However, if Tesla (TSLA) wants a new record in Model 3 deliveries, it needs to deliver 63,359 or more units. If they are successful in doing so, then it is going to be a stupendous achievement. The quarter to quarter delivery growth in the model would hit 24%, while the year on year delivery growth will stand at a highly impressive 243%. In addition to the delivery data, the investors will also be eager to know about the company’s projections for deliveries in the next quarter.
Why Ford Motor (F) Stock is Outperforming The broader Auto Sector?
In 2019, most investors, who specialize in the automobile sector, have been almost completely occupied with the fate of electric car manufacturer Tesla (TSLA-Stock Info). The sliding sales and deepening losses had worried investors and sent the stock crashing at the beginning of the year.
It goes without saying that the attention Tesla got was disproportionate. This brings us to the point of Ford, one of the established giants of the global automobile industry. Amidst all the chaos, the Ford Motor Company (F-Stock Info)’s stock has proven to be an unlikely winner. In fact, it has managed to gain as much as 27% this year so far.
Sales And Profits Continue To Grow
Over the past decade, Ford had dropped from its highs following the financial crisis. In this regard, it needs to be noted that while its sales and profits continue to grow, Ford failed to rein in its expenses. In turn, it affected the company’s ability to fully take advantage of segments in which they were strong. Truck and SUV sales are two particularly glaring examples in this regard.
Investors were fully aware of these problems. Eventually, the stock slumped, despite the fact that Ford had recorded record profits back in 2015. However, the company has recently overhauled its strategy completely. New CEO Jim Hackett’s leadership seems to have taken Ford into a new trajectory altogether.
Hackett has been extremely proactive with his plans on ‘redesigning’ the business of Ford. He has come up with a specific plan to turn the company around completely. More importantly, it seems that his efforts are taking an effect and it has been reflected in the company’s previous two earnings reports.
The new CEO has steered the company towards focusing more on SUVs and trucks since those vehicles generate higher margins and sales. On the other hand, investments on hatchbacks and sedans have been reduced significantly. This move has helped the company in helping the bottom-line without losing out much with regards to market share.
In addition to that, Ford has moved aggressively towards a global restructuring of its business as well. Significant restructuring is underway in the company’s businesses in South America and Europe.
Over the years, Ford had spent a lot of money on operations that did not bring a lot of money. In one of the world’s biggest automobile markets in China, the company’s operations have been abysmal but that is changing as well.
Ford has now installed a highly experienced management team in charge of its China business and the losses from the country have already been reduced somewhat. There is some way to go before the company to have completed its turnaround but the signs are good and the market has recognized that as well.
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