Tuesday's Market Minute: Ride-Share Earnings Scare?

Lyft, Inc. (NASDAQ:LYFT) and Uber Technologies, Inc. (NYSE:UBER), two stocks with rocky histories, report earnings Wednesday and Thursday, respectively. Their last reports before Covid-19 seemed to encourage investors that the companies, especially Uber, were finding their way to profitability and that there was demand and room for expansion, whether into other global markets or side businesses like delivery. This was especially important because Uber and Lyft were still losing money with every ride a passenger took as they battled for control of the U.S. market despite many consumers having both apps on their phone, and drivers working for both companies. With many large cities locked down as well, drivers are unlikely to be working and passenger need should be low. However, since the companies were losing money per fare instead of profiting, how might that affect their financial health? Uber may be more active than Lyft during Covid-19 as well, since it owns Uber Eats, and Lyft has no comparable service. This quarter's earnings will help investors compare their health and evaluate the road ahead.