Bulletin
Investor Alert

The Wall Street Journal Archives | Email alerts

Aug. 19, 2022, 12:42 p.m. EDT

Ride-hailing stocks reverse after recent rally

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Uber Technologies Inc. (UBER)
  • X
    Lyft Inc. Cl A (LYFT)
  • X
    Grab Holdings Ltd. (GRAB)

or Cancel Already have a watchlist? Log In

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 +0.83% and Lyft Inc. /zigman2/quotes/208999293/composite LYFT -1.67% 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 +2.66% , 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.

An expanded version of this stock appears on WSJ.com.

Popular stories from WSJ.com:

/zigman2/quotes/211348248/composite
US : U.S.: NYSE
$ 26.72
+0.22 +0.83%
Volume: 19.93M
Oct. 3, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$52.47 billion
Rev. per Employee
$872,014
loading...
/zigman2/quotes/208999293/composite
US : U.S.: Nasdaq
$ 12.95
-0.22 -1.67%
Volume: 14.53M
Oct. 3, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$4.65 billion
Rev. per Employee
$831,049
loading...
/zigman2/quotes/222950675/composite
US : U.S.: Nasdaq
$ 2.70
+0.07 +2.66%
Volume: 15.10M
Oct. 3, 2022 4:00p
P/E Ratio
10.56
Dividend Yield
N/A
Market Cap
$10.13 billion
Rev. per Employee
$75,957
loading...

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.