On Thursday, BTIG reaffirmed its Buy rating on Uber Technologies Inc . (NYSE:UBER) with a steadfast price target of $90.00. While the rideshare sector shows strong momentum, with competitor Lyft (NASDAQ:LYFT) seeing impressive revenue growth of 25.4% in the last twelve months and maintaining a "GOOD" overall financial health score according to InvestingPro, the firm's analyst highlighted the competitive dynamics between Uber and Waymo, the autonomous vehicle (AV) rideshare company. Waymo is currently recognized as the leader in the AV rideshare space, yet its relationship with Uber remains complex.
Furthermore, Waymo has announced its intention to launch services in Miami, where its AVs will be available solely on the Waymo One platform, and the fleet will be managed by Moove, another private entity. Currently, Waymo's operations or expansion plans span six markets, with Uber being a part of three.
The BTIG analyst emphasized that the autonomous vehicle sector is still in its infancy and believes that these developments do not have an immediate impact on Uber's near-term financial estimates. The analyst's comments reflect a watchful eye on the evolving landscape of AV rideshare services and their potential interactions with established players like Uber.
In other recent news, Waymo, Google (NASDAQ:GOOGL)'s autonomous driving technology company, has announced plans to expand its autonomous ride-hailing service, Waymo One, to Miami in partnership with global mobility solutions provider, Moove.
This development is expected to add competitive pressure on ride-hailing companies, Uber and Lyft. Meanwhile, Lyft has seen positive adjustments in its stock outlook with Loop Capital revising its price target for Lyft shares to $23.00 while maintaining a Buy rating. BofA Securities also raised its price target for Lyft to $21, retaining a Buy rating on the shares.
On the financial front, Lyft reported a 32% year-over-year revenue increase in Q3 2024, reaching a record $1.52 billion. Gross bookings were up 16% to $4.1 billion and Active Riders increased by 9% to a record 24.4 million. However, the company reported a GAAP net loss of $12.4 million, which included restructuring charges.
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