Wall Street will track earnings from gig economy companies in the coming weeks to see if and how they have been impacted by the recovery trend of the pandemic. But analysts aren’t exactly unanimous on how the sector will play out. The 2022 plunge highlights the challenges gig economy stocks have faced in recent years as novelty and venture capital funding cool, analysts told clients. Some of the major players in this space are showing early signs that they may make a comeback in 2023. Respectively. SVB MoffettNathanson analyst Michael Morton said: he said in a note to customers Monday. “While we soberly assess our difficult past, we are encouraged by improvements in a capable market, consumer confidence and the underlying unit economics of our core U.S. restaurant delivery and ridesharing businesses. I will,” he added. Analysts are now weighing how he’ll position ahead of major gig company earnings reports starting Feb. 8 with Uber. Let’s take a look at where each company stands. SVB MoffettNathanson, Jefferies and Bernstein all agree they are bullish on Uber. While Bernstein expects an inline quarter from Uber, he notes he could be EBITDA positive after an adjustment within his next two quarters. Despite bookings falling short of Wall Street estimates, SVB’s Morton expects profitability to improve. But he sees Uber as a potential winner in post-pandemic events and a return to travel. “There is scope to implement a global return to pre-pandemic human mobility,” Morton said. “Uber is a way to invest in trends,” says Jefferies analyst John Colantuoni. and help increase market share. The company’s focus on expanding its market through new locations and services, such as freight and food delivery, will also help increase its overall addressable market and cross-selling opportunities, while also helping reduce risk, he said. said. But his Lyft analysts at the three companies are skeptical about his competitor Lyft. Bernstein analyst Nikhil Devnani called the company “confusing” and assessed its profitable market performance. Q4 estimates appear conservative given the company’s service fee hikes and tailwinds from the economic recovery, but recent outperformance and an uncertain broader economic outlook make forecasting difficult. said he. He is the only analyst out of the three who expects stocks to pick up next year. Devnani expects fourth-quarter earnings to be near the upper end of expectations. And he said active riders and earnings guidance and commentary could be more important than his EBITDA. Morton also assesses that Lyft is “lacking” when it comes to finding ways to scale the business and get out of the driver shortage. , citing hard data that riders prefer Uber two-thirds of the time. DoorDash analysts split on DoorDash. Morton said he was the most optimistic about DoorDash out of the three, citing a larger overall target market, more financial transparency, and improved employee dynamics, so delivery over rideshare said he prefers DoorDash has a “best-in-class” management team and is a market share leader in its core business “at an inflection point in profitability,” he said. He rated the stock outperformed, along with mixed expectations for the earnings report. Bernstein also rated the stock as outperforming, with Devnani noting that food delivery is slowing but reaching reasonable growth rates. It said it could exceed EBITDA guidance. “He raised his adjusted EBITDA forecast to $600 million (+$50 million), and he said that number could move up if non-core segment margins improve this year. I’m thinking,’ he said. “Assuming we are heading in the right direction, the debate among investors is whether the combination is ‘good enough’. Given the focus on operating leverage, I think it will. Of course, the magnitude of the beat/miss in each division matters.” Colantuoni isn’t so optimistic, and Jefferies rates the stock as underperforming. DoorDash ranks among current users of its restaurant delivery app. The most popular delivery platform, dominating potential users’ mindshare, he said, but restaurant delivery platform to maintain growth after gaining so much base during pandemic Concerned about capacity — CNBC’s Michael Bloom contributed to this report.
