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Motley Fool Hidden Gems Investing

Uber's Slowdown and Disney's Net Fix

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.33.1K Ratings

🗓️ 9 August 2019

⏱️ 40 minutes

🧾️ Download transcript

Summary

Uber stock tumbles after reporting a $5.2 billion loss. Disney announces a Netflix-priced streaming bundle. Kraft Heinz hits a new low. Roku connects. And Chipotle serves up new queso. Analysts Aaron Bush, Ron Gross, and Jim Mueller discuss these stories and weigh in on the latest earnings from Activision Blizzard, Lyft, and Zillow. Plus, Motley Fool Director of Small Cap Investing Bill Mann talks international investing, salmon farming, ethics cheers, and top gloves. Thanks Netsuite. Get the FREE guide, “7 Key Strategies to Grow your Profits” at www.NetSuite.com/Fool.   Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

We got a lot more earnings this week and this episode supported by NetSuite.

0:05.9

The business management software that handles every aspect of your business

0:09.2

and an easy-to-use cloud platform, download their free guides,

0:12.7

seven key strategies to grow your profits today at NetSuite.com slash full.

0:22.1

Everybody needs money. That's why they call it money.

0:30.4

You can give them to the present, be the future.

0:33.4

From full global headquarters, this is Motley Full Money.

0:36.8

It's the Motley Full Money Radio Show. I'm Chris L. Joining me in studio this week.

0:40.1

Senior analyst Jim Mueller, Aaron Bush, and Ron Gross. Good to see you as always,

0:44.0

gentlemen. Hello. We've got the latest earnings from Wall Street. We will dip into the full

0:47.8

mailbag and as always we're giving inside look at the stocks on our radar. But we begin with the

0:52.4

week in ride sharing. Uber and Lyft both issuing second quarter reports. Uber lost more than

0:58.9

$5 billion in the quarter. Lyft didn't lose nearly that much. We'll get to Lyft in a second,

1:04.9

Aaron. Let's start with Uber. You looked at the quarter. What stood out to you?

1:08.0

Right. So first of all, that $5 billion loss is overstating it a bit because a lot of that had to do

1:13.2

with share-based compensation from the IPO. But even if you strip that out, they lost over a billion

1:18.6

dollars. So the way I see it, Uber has a bit of a problem. Its revenue growth is slowing while

1:24.5

its losses are growing. Uber does a pretty atrocious job of breaking out the business. We can't get a

1:30.5

super great view of what's going on. But a few takeaways. Trips this quarter grew 35% over the

1:36.5

past year, which isn't bad. Bookings was about the same. But if you take out the driver appreciation

1:41.6

awards, Bookings Growth was not so high. So we can get a sense that not only does Uber lack pricing

1:48.1

power when it comes to the riders, but it also lacks some pricing power in terms of its take rate

...

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