What to anticipate amid tech misery indicators

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Lyft (LYFT) is ready to report its third-quarter outcomes on the finish of a tough earnings season for tech.

Huge names like Amazon (AMZN), Meta (META), and Microsoft (MSFT) have been hammered by the buyer slowdown, a hawkish Fed, and inflation.

For Lyft, shares are off greater than 69% year-to-date, as of late Monday morning, whereas the tech-heavy Nasdaq has declined greater than 8.5% throughout the identical interval.

Listed below are Wall Avenue’s estimates compiled by Bloomberg:

Income: $1.06 billion anticipated versus $864.4 million in Q3 2021

Adj. Earnings Per Share (EPS): -$0.09 anticipated versus -$0.21 in Q3 2021

Adj. Internet Revenue: $28.06 million anticipated versus -$17.8 million in Q3 2021

Energetic Riders: 21.1 million anticipated versus 18.9 million in Q3 2021

Raymond James analyst Aaron Kessler wrote on Oct. 31 that he “want to see stronger progress and aggressive positioning” out of Lyft, which Wall Avenue has typically seen as Uber’s child sibling.

Uber (UBER) missed on expectations for gross bookings and reported larger losses per share than anticipated, however the firm’s income rose 72% year-over-year.

“Lyft continues to be the little brother of Uber,” Wedbush Senior Fairness Analysis Analyst Dan Ives mentioned last week on Yahoo Finance Dwell. “I believe that’s been a problem for them … Bear in mind, Uber has the worldwide platform and Lyft continues to be home. In principle, this bodes properly for Lyft, however that’s one the place the can proceed to journey over their shoelaces.”

A car with a Lyft logo in its window drives down a street as the company prepares for its upcoming IPO in New York, U.S., March 19, 2019. REUTERS/Lucas Jackson

A automotive with a Lyft brand in its window drives down a avenue as the corporate prepares for its upcoming IPO in New York, U.S., March 19, 2019. REUTERS/Lucas Jackson

So, Ives, added, this Q3 earnings cycle is “an vital earnings for [Lyft]… after what’s been a uneven street.”

Nonetheless, there’s hope that tech’s challenges have lastly peaked.

“I personally consider the underside’s within the rearview mirror for tech,” Ives mentioned. “I believe numbers have been cleared, decks have been cleared.”

Allie Garfinkle is a Senior Tech Reporter at Yahoo Finance. Observe her on Twitter at @agarfinks.

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