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Motley Fool Hidden Gems Investing

Starbucks Heats Up, Lyft Stalls

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 4 May 2022

⏱️ 29 minutes

🧾️ Download transcript

Summary

Ride-sharing stocks took a hit today, but don't assume they're the same. (0:20) Maria Gallagher discusses: - Uber's scale outweighing Lyft's - Prospects for Uber reaching profitability by the end of 2023 - Challenges in China contributing to Starbucks suspending guidance for the rest of the fiscal year - Starbucks 12% same-store sales growth in the U.S. - Match Group getting a new CEO (15:03) Emily Flippen and Asit Sharma discuss the business of pets ownership and the prospects for small-cap Rover Group. Stocks discussed: UBER, LYFT, SBUX, MTCH, BMBL, ROVR, CHWY, FRPT Our Investing Starter Kit includes 15 stocks and 5 ETFs. Get a free copy here - http://fool.com/starterkit Host: Chris Hill Guests: Maria Gallagher, Emily Flippen, Asit Sharma Producer: Ricky Mulvey Engineers: Dan Boyd, Rick Engdahl Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Today on Motley Fool Money, ride sharing, the business of pets and coffee.

0:10.3

Wonderful, wonderful coffee.

0:15.0

I'm Chris Hill, joining me today from the financial capital of the United States of America.

0:25.7

It's Motley Fool Senior Analyst, Maria Gallagher.

0:28.1

Who do you see?

0:30.1

We've got the latest on Starbucks and Match Group.

0:34.1

We're going to start with the ride sharing businesses.

0:36.1

Uber and Lyft both out with first quarter reports.

0:40.1

There is a tendency to lump these two together, not just because they're in the same line of work

0:46.1

and because they typically report earnings at about the same time.

0:50.1

But also because for a long time, their business is sort of tracked one another.

0:54.1

I feel like what we're seeing today is representative of some sort of divergence between the two businesses.

1:02.1

And not just because shares of Lyft are down dramatically more than shares of Uber.

1:08.1

But it seems like they're in different places in terms of where they are investing.

1:16.1

Part of why shares of Lyft are down is they're talking about how, hey, look, we're going to be spending more money.

1:20.1

We need to spend more on driver incentives.

1:24.1

It's not that Uber is suddenly magically a profitable business.

1:28.1

But it seems like they're, I don't know, are they more mature as a business?

1:34.1

What do you see when you look at these two?

1:36.1

Yeah, I think it is really important to understand that they are really used interchangeably colloquially.

1:42.1

In terms of what rider are you getting, it's either going to be Lyft or Uber probably.

1:46.1

And so understanding the difference in scale is really important.

...

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