Home NewsStock Market News Inflation reversed, helping gig economy stocks Lyft, Uber record biggest weekly gains in history |

Inflation reversed, helping gig economy stocks Lyft, Uber record biggest weekly gains in history |

by WOOWinvest
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Inflation reversed, helping gig economy stocks Lyft, Uber record biggest weekly gains in history |

Shares of gig economy companies Uber, Lyft, DoorDash and Airbnb rallied after quarterly earnings reports this week showed strong demand.

Ride-sharing company Lyft (LYFT-US) surged 46% this week, while peer Uber (UBER-US) surged 37%, both posting their highest weekly gains on record. Food delivery service DoorDash (DASH-US) surged 15% this week; Airbnb (ABNB-US) rose for the third straight week, up 5.5% for the week.

Investors were encouraged by gig brokerages’ ability to resist inflationary pressures in the consumer market at a time when other industries, including retail, were battered by inflation.

This will also help the US fresh grocery delivery platform Instacart to launch an initial public offering (IPO). Instacart filed confidentially for an IPO in May, even though the company had to lower its private market valuation.

Uber Chief Executive Dara Khosrowshahi said he has noticed a shift in consumer spending from retail to services, and that inflation may even help, as consumers have seen an increase in Uber drivers as consumers look for ways to increase their income.

At the same time, Airbnb set a record for the most nights booked in a single season; DoorDash’s total number of bookings also surged to an all-time high; Lyft, although still in net loss, posted its highest ever adjusted profit.

The gig economy company’s highlight this week Uber reported quarterly revenue of $8.07 billion, well above analysts’ expectations of $7.39 billion. Uber driver engagement reached another post-pandemic high this season, Khosrowshahi said. Lyft’s number of active drivers jumped 16% to 19.9 million, the highest number since the start of the COVID-19 pandemic. DoorDash reported a wider-than-expected loss per share, but revenue beat expectations and total orders rose 23% year-over-year to 426 million, a record high. Airbnb rose for a third straight week after the company on Tuesday reported second-quarter profit that topped forecasts and revenue that was in line with forecasts. The number of nights booked for cross-border travel surpassed pre-pandemic levels and doubled from the same period last year.

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