By Dave Sebastian
Ride-hailing firms Uber, Lyft and Grab have recovered some of their lost market value over the past month, but a selloff this week has undermined the rally.
The shares of Uber Technologies Inc. /zigman2/quotes/211348248/composite UBER +0.30% and Lyft Inc. /zigman2/quotes/208999293/composite LYFT -2.30% have risen more than 35% since mid July, aided by their stronger-than-expected results earlier this month. Singapore-based Grab Holdings Ltd. /zigman2/quotes/222950675/composite GRAB +2.73% , which is set to report its second-quarter performance on Aug. 25, has jumped 41%.
But the three companies’ shares have all fallen heavily this week. By Thursday’s U.S. market close, Lyft and Grab were down around 9% this week, and Uber had fallen about 7%.
“We are likely in a bear-market rally,” said Eli Lee, head of investment strategy at Bank of Singapore. He added that the recent strength in ride-hailing stocks could wane over the near term, as macroeconomic conditions remain highly challenging.
The three companies’ shares are still well down this year, losing more than $43 billion in market value. Japanese conglomerate SoftBank Group Corp., whose Vision Fund made big bets on Uber, Grab and Chinese ride-hailing firm Didi Global Inc., has seen the value of those investments plummet, although it recently made a $1.5 billion profit from selling its Uber stake.
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