The escalating trade war between Washington and Beijing dominated discussions at the G-7 gathering in France.Politicsread more
The latest round of tariff announcements in the last few days means that by the end of the year, essentially all Chinese goods exported to the U.S. will be subject to duties.China Economyread more
Futures fell after Trump said the U.S. will raise tariffs on more than $500 billion worth of Chinese imports, increasing trade tensions.Marketsread more
Tensions stemming from the U.S.-China trade war escalated sharply over the last few days, with much happening as Asian markets were shut down for the weekend.China Economyread more
Clouding the G-7 gathering, which represents the world's major industrial economies, are the tit-for-tat tariffs between Washington and Beijing.Politicsread more
Neither the U.S. nor China wants to be seen as the party that derailed trade talks, says William Reinsch of Center for Strategic and International Studies.World Economyread more
China said Friday it will be resuming 25% duties on U.S. autos, and a further 5% on auto parts and components.Asia Marketsread more
World leaders, environmental groups and celebrities have publicly decried the vast swaths of forest being destroyed by the fires.World Newsread more
Education Minister Ong Ye Kung says the Singapore government has been preparing for the challenge of an aging workforce "for the past 20 years."Employmentread more
Megvii is known for its facial recognition technology and while revenue grew over 350% in 2018, its losses have widened.Technologyread more
Stocks in Asia fell Monday afternoon following an escalation in the U.S.-China trade war late last week.Asia Marketsread more
SAN FRANCISCO, May 8 (Reuters) - Lyft Inc's stock slumped more than 9% on Wednesday to a record low after the ride-hailing company posted a deep quarterly loss, putting pressure on Uber Technologies Inc as it prepares to price its initial public offering.
Lyft lost $1.1 billion for the March quarter, the company said on Tuesday, though analysts applauded its revenue growth. With the latest drop, Lyft shares are now down 26% from their March 28 IPO price, giving the company a market capitalization of about $15 billion.
Lyft's sharp decline since its Wall Street debut will weigh on investors considering whether to buy shares of larger rival Uber, which is slated to price its own IPO on Thursday.
Uber, which like Lyft is unprofitable, is willing to price conservatively within its stated range of $44 to $50 per share to avoid repeating Lyft's poor performance since its IPO, which was aggressively priced at the top of its range, a person familiar with the matter told Reuters on Tuesday.
Uber, the world's largest ride-hailing company, is aiming for a valuation of $80.5 billion to $91.5 billion. That is as much as a third below what the startup's insiders had hoped for last year.
Uber will need to convince potential investors that it is different from the Lyft, and that could include highlighting its international operations and Uber Eats food delivery service.
Lyft's loss of $48.53 per share in the first quarter was largely due to stock-based compensation and payroll tax. It forecast that losses would peak this year, but did not say when it would make a profit.
Lyft's revenue rose 95% to $776 million, more than analysts on average expected, according to Refinitiv data.
Investors have struggled to figure out how much Uber and Lyft are worth, given both companies have not estimated a timeline for turning a profit. Some investors believe the eventual adoption of autonomous cars will help make the companies profitable.
Lyft did not disclose its quarterly bookings, riling some investors. Those figures include the portion of each ride's fare that goes to the driver as well as the part that goes to Lyft, a metric the company had called a key indicator in its IPO prospectus.
Twenty-three analysts cover Lyft, mostly with positive ratings, according to Refinitiv. Their median price target is $77, 44% above Lyft's current price of $53.61.
Lyft expects revenue growth to slow to 52% or 53% for 2019 after doubling last year. That would value Lyft's stock at 4.75 times its 2019 sales. Applying that multiple to Uber, based on revenue estimates of three analysts who have already initiated coverage, would value it at around $68 billion.
Uber was most recently was valued at $76 billion in the private fund-raising market.
Analysts from brokerages including Canaccord, Stifel, Wedbush, JPMorgan and Credit Suisse published upbeat notes reacting to Lyft's report.
"We believe Lyft will be both a catalyst and beneficiary of the growth of ridesharing and autonomous tech over the next 10+ years," Piper Jaffray analyst Michael Olson wrote in a client note, maintaining his "overweight" rating and $78 price target. (Reporting by Noel Randewich, additional reporting by Joshua Franklin in New York; Editing by Meredith Mazzilli)