Technology

Uber Misses Out on Reopening Trade as Investors Crave Profitability

Consumers have rediscovered the desire to travel following the pandemic, but the reopening trade isn’t filtering through to ride-hailing companies, which are poised to report quarterly results in an unfriendly environment for the stocks.

Shares of both Uber Technologies Inc. and Lyft Inc. have struggled throughout 2022, extending long-standing slumps as they fail to live up to the hopes of optimistic Wall Street analysts. The pair are confronting high inflation and a potential economic downturn that could damp demand. At the same time, aggressive interest rate increases by the Federal Reserve have made unprofitable growth stocks like these very much out of favor.