They celebrated the company’s more steadfast profitability and the potential for an investor-payout plan, growth in ride demand and improvements in the segment that enables other businesses to promote in the app. And they pointed out its potential to expand its role in local economies by transporting more individuals, takeout, groceries, and other commodities from one place to another. One person stated that Uber
UBER,
had “recently begun to demonstrate its platform capability.”
In the upcoming week, we will observe whether the commendation extends to some of Uber’s smaller freelance-economy competitors.
Uber’s primary ride-hailing competitor, Lyft Inc., will present its results on Tuesday, as will the online grocery-delivery service Maplebear Inc., better known as Instacart. Food-delivery app DoorDash Inc. will report on Thursday. Collectively, these results will provide a comprehensive overview of freelance work and delivery demand.
Ride-sharing has rebounded since the pandemic, and analysts have generally indicated that a return to more “normal” trends benefits Uber. However, spending on online grocery delivery decelerated last year, according to Oppenheimer analysts, following a surge in demand during the pandemic.
Meanwhile, customers persist in expressing dissatisfaction with escalating food-delivery expenses, and drivers, mostly confined to less generous contractor positions, are still advocating for improved compensation and perks. Moreover, online advertising — wherein external businesses remunerate a company like Uber or DoorDash
DASH,
for advertising space in their apps — might emerge as a more significant revenue driver for those platforms as they navigate fluctuations in consumer demand elsewhere.
Lyft
LYFT,
will disclose its results as it endeavors to differentiate itself from Uber, concentrating on services such as providing transportation to and from work for employees, and services for women and non-binary drivers and riders. In an effort to attract drivers, the company announced last week that it would remunerate its drivers with at least 70% of the fare paid by riders — after external fees. Lyft also mentioned that it would furnish drivers with more comprehensive breakdowns of riders’ fare.
Meanwhile, Instacart’s shares
CART,
have declined from their IPO price, and its customers are still experiencing the repercussions of a surge in grocery prices over the past few years. However, Wedbush analysts approved of the company’s recent decision to offer Google Shopping advertisements to its advertising partners, stating that these ads — which redirect shoppers from Google to Instacart upon clicking — would assist Instacart in capturing a larger portion of advertisers’ expenditure.
Jefferies analysts, on the other hand, raised their rating on DoorDash
DASH,
last month, indicating that its intensified focus on advertising and delivery from grocery and convenience stores would enhance profits over the next two years.
This week in earnings
More than two-thirds of the companies in the S&P 500 index have disclosed their results for the most recent quarter, according to a report by FactSet released on Friday. In the upcoming week, said report mentioned that 62 S&P 500 companies will reveal their results, including two from the Dow.
In the aftermath of challenges at McDonald’s Corp.
MCD,
which attributed weakened business performance to the Middle East conflict and reduced spending from lower-income customers, we will hear from chains like Shake Shack Inc.
SHAK,
Wendy’s Co.
WEN,
and Krispy Kreme Inc.
DNUT,
Furthermore, Crypto exchange Coinbase Global Inc.
COIN,
will also report, amid uncertainties about the impact of new Bitcoin exchange-traded funds and regulatory scrutiny.
Sports-betting platform DraftKings Inc.DKNG,
is scheduled to release its earnings after the Super Bowl, while the footwear manufacturer Crocs Inc.
CROX,
will report following a more optimistic outlook given last month
wake of a more upbeat outlook last month. Major beverage producers Molson Coors
TAP,
and Coca-Cola Co.
KO,
are also set to announce their earnings, along with the lodging platform Airbnb Inc.
ABNB,
Noteworthy Event
Last week, Mattel Inc.
MAT,
revealed its intention to reduce expenses, following the success of the “Barbie” movie, but anticipates a subdued demand for toys in the upcoming year due to a thinner film pipeline. Hasbro Inc., its archrival, will provide insights into its performance for the crucial holiday quarter on Tuesday.
Games such as “Dungeons & Dragons,” “Magic: The Gathering,” and the video game “Baldur’s Gate III” have been standout successes for the company. Amid efforts by both Mattel and Hasbro to adapt more of their toys and games into films and TV shows, Hasbro
HAS,
has over 30 entertainment-related projects in development, including “Transformers One” and an animated “Magic” series on Netflix. Despite this, the company is restructuring, having divested its Entertainment One film and TV business to Lionsgate for $375 million and announcing additional layoffs. On the flip side, it has declared a dividend.
Significant Metric
Performance of Cisco’s orders and sales: The networking and cloud-services leader, Cisco Systems Inc.
CSCO,
is set to announce its quarterly results on Wednesday. The release coincides with uncertainties regarding potential strategic missteps, post-pandemic demand, competition, and the extent of sales saturation among existing customers.
In November, the company revised its full-year sales outlook. CEO Chuck Robbins mentioned that new orders had slowed down, emphasizing that “our customers are now focused on installing and implementing these unprecedented levels of products.” Needham analyst Alex Henderson remarked that the forecasts “seal our opinion that Cisco is losing market share in its core business.”
The financial community is eager for clearer insights into Cisco’s future trajectory amid restrained expectations. A potential indicator emerged last Friday: Reuters reported that the company is contemplating “thousands” of layoffs as it concentrates on segments with more promising growth prospects.