Uber, DoorDash, and Lyft collectively lose $9 billion in market cap due to sell-off

The country’s top three app-based gig companies extended their losing streak, losing a combined $9.12 billion in market cap on Monday following a broad market sell-off.

DoorDash Inc. DASH,
The stock closed at an all-time low after falling 11% to $64.18, its biggest percentage drop since March 14, when it fell 12.54%. It was also the worst three-day stretch for shares since the three days ended March 7, when they fell 22.93%. The company lost $2.76 billion in market cap on Monday.

Shares in ride-hailing giant Uber Technologies Inc. UBER,
and Lyft Inc. LYFT,
both closed at lows not seen since their worst performance at the start of the coronavirus pandemic two years ago. Uber stock closed at $23.05, down 11.6%, its lowest close since April 3, 2020, when it closed at $22.82. Lyft stock closed 9.3% lower at $18.61, its lowest close since March 18, 2020, when it closed at $16.05. Uber lost $5.7 billion in market cap and Lyft lost $660 million on Monday.

For Uber, the big downfall came on the same day as a news report that Chief Executive Dara Khosrowshahi emailed employees Sunday night announcing cost cuts, treating hiring “as a privilege” and having to “do more with less.” In the email, the CEO cited “a seismic shift” in market and investor expectations. Because of that, the company will make its own shift: instead of measuring profitability progress using adjusted Ebitda, it will use free cash flow.

Analyst Tom White of DA Davidson said Monday he was pleased that Khosrowshahi was responding “firmly in response to the changing stock market environment and the issues important to investors.”

On the other hand, Lyft executives told analysts during last week’s conference call that they intend to spend more on driver incentives and marketing, sending the company’s shares plummeting. White attributed the contrast in tactics to Lyft’s “lack of a multi-product platform during the pandemic,” which negatively impacted its rider offering. Meanwhile, Uber has said its delivery business has allowed it to retain riders on its platform who may have been marginalized by the pandemic.

Uber, Lyft and DoorDash all reported first-quarter results last week, beating revenue expectations but still posting net losses. Uber’s stock is down 45% year-to-date, while Lyft and DoorDash are down more than 56% and 57%, respectively, year-to-date.

https://www.marketwatch.com/story/uber-doordash-lyft-lose-combined-9-billion-in-market-cap-amid-selloff-11652137187?rss=1&siteid=rss Uber, DoorDash, and Lyft collectively lose $9 billion in market cap due to sell-off

Brian Lowry

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