Uber’s (UBER.N) shares fell 6% on Tuesday after the ride-hailing company warned Lyft was competing effectively on prices and set an earnings forecast that analysts said may have disappointed investors who have driven up the stock two-fold this year.
The comments and an easing pace of revenue growth overshadowed the 14-year-old Uber’s first-ever quarterly operating profit.
That also pushed down shares of Lyft (LYFT.O) nearly 5% on worries that the smaller rival could lose money by cutting prices on its rides.
“They’ve (Lyft) taken some tough actions, and they are competitive in pricing now,” said Uber CEO Dara Khosrowshahi, calling Lyft a “tough competitor”.
Uber forecast third-quarter adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) — a profitability metric keenly watched by investors — between $975 million and $1.025 billion. Analysts were expecting $925.9 million, according to Refinitiv data.