looking out, we see a long runway ahead for both uber and lyft. david: if i'm buying some of this uber stock today, what am i going to be looking at from the company? what signals down the road will be looking for? what benchmarks one be looking at to say that was a good investment on my part? asad: that is a great question. i think it will be key over the next few quarters that these management teams execute well and maintain the robust revenue growth both of these companies have been seeing while also being able to narrow their losses through operational improvements. i think that will be key to demonstrating to investors on the fence that both of these companies have a real path forward. vonnie: what is the message that needs to be got out today? willhatter around uber have turned slightly negative since we actually got the opening trade and the continuation of the trading day. doesderek our xiaomi -- the ceo need to get something out there? asad: i think dara is focused on the long-term and that is how he and the management teams should be thi

it's not drivers it's the network which they share with a lot of people overlapping with lyft. so i don't -- i really don't get it we've seen a lot of companies that don't make money to start at $83 billion, a lot of things have to go really, really right around the world, you know and maybe uber eats is the be all end all and i am so skeptical of it so you have 1.3 or 4 billion and they're insiders and the executives of the company and another 600, 700 million, and i think of softbank selling which they're selling a little of. >> oh, my god, i don't want to own it not at this price and good for them for getting it done, but i feel very comfortable staying away if they end up finding magic beans to make money, great good for them. >> i feel like there are a lot of bears when it comes to this particular issue and to play devil's advehicle at, some people compare this to an amazon where amazon didn't own necessarily, at that point when they went public it was the magic of the connection of the platform that connected buyers and sellers and they didn't actually carry and they conn

what is the future for lyft? think transportation as a service has always been lyft's goal, and managing the data associated with door to door transport, whether that's bikes, scooters, electric cars, autonomous vehicles. that is what the market is and what lyft is executing towards. caroline: before we go to uber and the new ipo this week, what i am interested in, in the recent release they haven't articulated what the market share is for lyft. in the s1 they said it was 39%, but many looked at uber's filing and said that seems a little exaggerated. why not be more transparent about the market share they believe they have in this latest report? tim: that is a great question. i cannot answer that. i was looking forward to seeing that number. obviously it is not in it, but it will potentially be in the mdna, which i haven't seen yet. joe: the view is that basically it is all about top line, all about rider growth. to this point analyzing companies, is that the only thing we should be looking at? if you look at som

, lyft is already stretched. i believe as thin as it gets with the amount of money they have to put up as it is right now, to retain their drivers. so they can't afford really a cent more. in reality they need to figure out ways to decrease the cash burden on behalf of the drivers or else they will literally go out of business. connell: uber has the same issue, right? >> uber has the same issue. connell: they are a lot bigger, but -- >> uber has the same issue. the own reason investors back uber they hope they will get enough investment money where lyft will spin out and run out of that time to keep sort of in my opinion this bubble inflated. i really don't think lyft is a sustainable business at all in the short term and long term. especially in the long term as we get into more concerning issues where lyft is monumentally behind in the autonomous vehicle space and fast forward five years, think they will look like the next blockbuster. connell: really? you never want to be compared in 2019 everybody say, somebo

what's uber more likely to trade like, lyft or beyond meat?r is lyft and it's interesting, when it came to market, it's narrowing its losses while having the double growth, like we saw zoom do so, clearly investors are concerned with this path to profitability. they don't want to just bet on something far off in the future, but they're willing to accept losses as long as they're getting better. >> this is crazy i don't know if we have the photo, but robert frank was out in a manhattan diner over the weekend where they charge $7.5 for a regular burger you'll know -- this will -- >> i live in the same neighborhood as robert frank. >> uh huh. here we go, $7.50 for a beef burger, $11.75 for an impossible burger, and those were sold out. >> wow >> yeah. >> so, that's what's impressive here another thing they said in the note today, that bernstein said in this note, which is really causing some of the price momentum to the up side today, is that beyond meat, one of their biggest moats and benefits here is that they really, from their r&d standpoint,

look, uber would have bought lyft and said this or kind of privately, they would have bought lyft years ago. it was completely the regulatory reason they didn't think they could get it through i don't see now that they're both public. these are disappointing listings but still large companies, from market cap perspective, compared to most vc-backed tech startups, i can't imagine regulators allowing a merger between the two. maybe a couple years with autonomous fleets from gm and toyota competing but not now >> on that point, the two might not merge but general motors still is a large holder of lyft, so some weakness in lyft and any auto who wants to catch up in the game, we see tesla testing the cars that wants to catch up quick. >> they can absorb and go into that >> you, john, look at this almost their competitors or the market as effectively now bringing in all of the major u.s. or international car brands who do business. >> yes, kelly and forcing their hand to get involved in this technology, transportation as a service, a new segment, building out that portfolio, china, you mentio

we found that a majority of drivers drive for both uber and lyft.ost all uber drivers are driving more than 41 hours of week, and most lyft drivers are driving more than 41 hours per week. in addition, they said their schedule is more flexible since they've begun driving but simultaneously answered that they have less time for hobbies and families. one driver described driving as a trap. the driver began working for their uber -- began driving for uber-lyft after they were injured, and they couldn't perform their former job. two thirds of drivers indicated that driving was not their long-term goal. not surprising, two thirds of drivers were either working another job or looking for another job. this could mean that drivers are using transportation network companies as supplemental income. many families need to 41.5 to four minimum wage jobs in order to afford a one-bedroom apartment. this provides insight as to why people turn to gig work. of those who answered favorably, the respondents did not rely on the income. the income/expenses subcategory wa

emily: as did lyft. mark: as did lyft last year. but they lost a lot of money in the quarter. gap accounting, all sorts of ipo equity costs. so we expect to see those in uber's next quarter, so expect giant losses in the next quarter due to that, those charges. but on the call, they didn't offer a forecast, didn't explain why. but they gave vague guidance on the call, which is still ongoing, to expect incentives paid out to customers to go down in the future as the percentage of revenue from marketing will come down in q2, which investors like. that drove the stock backup in aftermarket trading. emily: looking at some of the details coming out from the call, they are talking about international, targeting countries with a regulatory opening. germany, argentina, south korea, spain, italy. that on top of what the ceo mentioned about uber being a bigger platform. so any company that competes, uber will be a bigger platform. mark: those were countries that were closed to pre-much any of uber or international competitors for a long time and only recently opened up. japan and german

we'll have more on ththe uber ad lyft strike later in the broadcast. and those are some of the headlines. this is democracy now!, democracynow.org, the war and peace report. i'm amy goodman. nermeen: and i'm nermeen shaikh. welcome to all of our listeners and viewers from around the country and around the world. we begin today's show on capitol hill where the house judiciary committee has voted to hold attorney general william barr in contempt of congress, over his refusal to turn over the unredacted mueller report and the underlying evidence to lawmakers. meanwhile, house intelligence committee chairman adam m schiff has issued a sububpoena to t justice department for the unredacted report. this all came after the white house and vote executive privilege to prevent the full report's release to congress and to bar former white house counsel from providing documents to congress related to the mueller probe. the house judiciary committee chair jerrold nadler spoke after the vote. very great and momomentous step that we were forced to take today to move a

lyft drivers will be participating as well.ng in seven major cities on the west coast including l.a. and san diego as well as, of course, san francisco. this is all coming ahead of uber's initial multibillion dollar public offering that is set for friday. reports claim frustration began to grow following lyft's ipo in march. uber and lyft drivers have a series of demands including increased job security, livable incomes, and a cap on the company's commission. drivers want to guarantee 80% to 85% of proceeds from the car go to the driver. we're learning that san francisco drivers are planning to turn off their apps for 12 hours starting at noon today. reporting live from sfo, jobina fortson, abc 7 news. >> jobina, thank you. >>> it is now 4:30. if you're just waking up to us, good morning. a quick update now on your weather and traffic. >>> we'll start with live doppler 7. you can see the gray, that's the cloud cover, the winds showing a pretty stout sea breeze but the marine layer is drying and so even faster sunshine than yest

lyft was another one. lyft is down 1.2%. bankers have been -- taylor: here's an interesting thing with avatar -- avantor. they increased the number of shares that they wanted to sell but increased the price per share. i was a different story we saw with companies like lyft. lyft was considered a positive because it rose on the first day. uber, we hadhit -- roadshow,week of the uber was oversubscribed. definitely taking a conservative approach this time around has helped the market in the secondary market of what we see with some of these ipos. selling more shares, but lowering the price per share, making sure there is enough demand, that could be part of the reason. guy: one of the other things is that these are companies that will be taking the proceeds and reinventing them back into the business. there have been lots of stories and arousal social media people checking out of the yuba ipo. that's not the case here. taylor: that's a good point. if we look at convertible preferred stock, companies like uber were funding conti

lyft is losing a huge amount of money. beyond me, it is a tightly controlled flow. >> although down on the week. >> i will tell you that i had a nestle's interview that was so chilling beyond me they gave me burgers that right now 1500 mcdonald's in germany are using, and it is incredibly popular, and they're going to bring them here this summer. you sit here and say, are you kidding me is beyond me going up against nestle's they can give the stuff away i did have one of the burgers? >> how was it? >> let's say it wasn't a big mac. it wasn't a wendy's. actually, my wife said, just like the domino's ad where domino's at one point did not compare favorably to shirt cardboard, she said it had the edge on shirt cardboard. >> that's good i guess the performance beyond me, the uber ipo signals something about the economic cycle that we're in, late cycle, what do you say? >> think it signals something about when you have massive loss-making companies doing an ipo it is hard to value them. >> yes, so true. >> even the lyft ipo whi

emily: what is your view on lyft versus uber.ete: i don't have any investment but my partner made an early investment. i think, when you look at the kind of fundamentals, uber, as a larger business, is the more interesting strategic position. selection in terms of options for its drivers as well as consumers, and its global reach. emily: uber doesn't have as much founder control and part of some of the issues it had with its actual founder. the ceo doesn't have that kind of control, the current ceo. lyft does. is that intriguing from an investor perspective? pete: some investors view founder control as a net -- found control as a net negative. this is a long-term journey. the future will not be driven by market share. it is going to be driven by autonomous. that requires big, big bets. i think the fear is that they recognize that that is a long term position for the company. we actually didn't have founder control of the company whereas i saw when i joined zillow's board, they did have founder control and that long-term thinking,

details. >> hi, melissa the analyst q and a just kicked off and it was on lyft's addressable marketed to learn about ride sharing versus the choice of owning a car and john zimmer, one of the co-founders answered by calling lyft much more than a ride sharing company and the consumer transportation market worth 1.2 trillion calling it a once in a generation opportunity. he also highlighted the areas that he sees as driving growth have a listen. >> i want to highlight three areas of execution that are helping us grow fast at skill. one, we are singularly focused on transportation. two, we are investing in our driver community and three, we are successfully executing on our enterprise strategy we call lyft business. it is our singular focus on consumer transportation that has allowed us to go deep and build competitive advantages along the full stack of offerings. >> now, this is their execution and their addressable market, but there are quarterly numbers that tell us that lyft is paying more for that innovation and execution while growth is slowing in q1 total costs and expenses and

weren't they making room for uber wasn't lyft down day three >> lyft was down day one from its high >> so i think, first of all, i am concerned and yes, softbank, you know, ipo fund and ipoing is the second derivative, oh, my goodness, but i do think i have a dynamic if amazon is rallying and you're seeing mega tech rallying and there are people investing in innovation and growth and there's much of the market that aren't rallying and people are willing to pay for those companies and leaving aside beyond meat, almost meat >> beyond meat beyond meat is the case where people are looking at disruption in meat. i don't want to bring this up and they're looking at companies where you actually have a dynamic that i think is still one of innovation, and i think people are paying for that. >> i mean, it's idiosyncratic growth that they're looking for these particular companies and that's not where we are in the market >> think when ipos do well, that's not a lynchpin for this market in my opinion the lynchpin in the market has to do with really easy, financial conditions causing the groind hi

the pricing of lyft was at the premium. the fact that the stock has sold off put pressure on the pricing of uber. the weakness in the market did not create the best time for them to go public, unfortunately. flipped belowas its latest private valuation of $15.1 billion. what does that say about the general valuation of the companies that are not making a thatt, there is hope for in the future, but the price of these massive valuations? >> it is the fact that uber goes public. you have a category of at least two companies that is creating the investment category of transportation as a service. which is in its infancy and will take a long time to play out. there is some opportunity for long-term investors to buy these participation in this trend of transportation of the service as both these companies expand the platform to include different types of services. for example, lyft is focusing on health care transportation, providing rides for people to go to doctors and health care providers who cannot get there on their own and

that eliminates the need for uber and lyft. it would just make those companies go away if it's spread all over the planet. there are already private companies that are working on creating cryptocurrencies like this. but if it was a city-issued cryptocurrency, all the current rules that you put in the currency that are mandated in the exchange would be mandated by the city. by the way, this currency does not have to have the high energy use of bitcoin. this is a different type of currency. so the city could issue this, and i would actually urge some urgency on this because as i said, private companies are working on these type of cryptocurrencies to disrupt uber and lyft and airbnb, and if a private company does it first, then we have to deal with them skimming money off the top of the process. so i would urge you folks that are -- >> chair fewer: thank you, mr. brooks. seeing no further comment, public comment is now closed. [gavel]. >> chair fewer: so madam clerk, can you please call item seven. >> clerk: yes, and for the reco

lyft didn't disclose gross bookings and moving away from total rides.didn't disclose those numbers why? >> that's a very good question and an important part of this narrative. you make a good point, investors are learning about not just these two companies but the whole industry before lyft we never had a ride sharing company, the public market investors could trade the fact that they take out gross bookings is a point that a lot of analysts have picked up on and this is really important metric to talk about their total addressable market, which john and logan, the two co-founders, spent a lot of time talking about last night on the call why they took it out still uncertain. what they told investors as they move into scooters and e-bikes and other mobility options, it could be a little confusing. you could argue that investors need that information and they can make up their own minds. it's a good point. >> yeah. deirdre, thanks. we're all looking forward to seeing what uber does. >>> the dow coming off its worst day in five months, but rebounding sharp

they also have uber drivers and lyft drivers actually have threatened to shut down the app. what we're noticing in various cities is we haven't seen reports of that app shut down. an uber spokesperson said it only seemed like a decline in new york city of 500 drivers you can see a very vigorous protest here in front of uber headquarters in san francisco. the largest protest we've seen so far, about 300 workers. and uber, for its part, has given us a statement saying that drivers are at the heart of our service and that we can't succeed without them we'll continue to work to improve drivers' experience for and with them every day. as you know, part of the company's ipo, uber is offering incentives for certain drivers basically, about a quarter or 1.1 million of global uber drivers will be eligible for a one-time driver appreciation award from $100 to $40,000 depending on how many trips they've completed. in talking to people out there, they say it's still not enough they say it's been a struggle driving for the company. they don't feel appreciated. and in a lot of other citie

lyft only has one part.inesses and is the leader in every business it is in. lisa: the parts are not adding up to profit. it is burning through cash at some of the fastest pace ever seen in an ipo. from an investment standpoint, is this a good by? kathleen: our study of the ipo at the we have looked most money-losing ipos that have ever been done in history. that is you have lost the most money prior to the ipo in that year. at the top of that list is uber. the second company is lyft. snap is on that list. groupon is on that list. we studied how the stocks performed to date from the ipo price and it is not a pretty picture. a lot of losses are hard for investors to absorb in their thinking on valuation. i do agree that lyft is just a very important little brother to uber's biggestnk disappointment is lyft, when they announced earnings, took another 10% drop because investors were concerned about their continuing losses and their significant. one billion for 2019. ipo.will be a hard just looking at overall ip

. ♪ fell athares of lyft the start of a crucial week.rivers are threatening and massive strike in the next few days. the company reports quarterly results on tuesday. the mostr is no doubt anticipated tech ipo to happen in years. while goldman sachs mixed out -- missed out on leading the company to the public market, only year after uber has started offering rides, goldman's bankers made a wager using the firm's own money that could have a potential $6 billion windfall. a top of the range of stock price for uber. if that happens, goldman stands to reap a staggering 12,000% return. the ridesharing company is expected to price on thursday afternoon and start trading on friday. the cofounder of the venture rivall firm in uber's lyft. what is it like being on the others, analyzing other companies rather than running and worrying about your own? >> it is a different job but it is fun. is veryt in -- different scale from the kind of public company but it is such a for tile ecosystem right now. ipo's,ar, so many whether it is uber, airbnb, lyft

lyft had 4.7 million rides. despite new york city's efforts in the past 12 months to curb down on the congestion and traffic caused by these apps. earlier in august, new york city is limiting license to new drivers of the ride-hailing app. earlier this year, minimum wages were set for drivers of uber and lyft. we have had some congestion surcharges on passengers. prices are going to be raised, yet we have not seen in the data yet that rides are slowing down. people are still taking a record number of trips. emily: could it be that they could be impacted down the line as some of these measures pile up and go into effect? shelly: it is possible to see down the line uber and lyft could be impacted, but it is too early in the data to see anything because it has been less than 12 months that new york city has kind of clamped down on the ride-hailing apps. we only have data from the taxi and limousine commission from march. it will take a few more months to see whether or not the rides keep increasing at uber and lyft

he's driven for lyft. he's driven for uber. he's accused of war crimes. been shuttling passengers for more than 18 months in suburban virginia. uber and lyft performed background checks but the military commander hasn't been committed of a crime. a google search shows he committed atrocities while a military commander in the 1980s. >> his ride share work unveils how uber and lyft do background checks. >> do you feel you deserve to live here, sir? do you feel you deserve to live here, sir? >> cnn reported uber and lyft approved thousands of people whose criminal records should have disqualified them. uber suspended ali. lyft says they have banned ali from their platform. >>> a college student facing second degree murder charges after beating his mother to death with a baseball bat in the middle of the night. the 20-year-old mistook his mother for an intruder while he was home on spring break. prosecutors filed criminal charges. his belief was not reasonable, since he had been drinking. he has the full support of family members who call the incident a horri

uber and lyft employees say their services are worth much more than they get paid. news 4's shomari stone joins us now from alexandria to explain how workers are trying to drive the point home. shomari? >> reporter: well, jim, there were ghon straigdemonstrations the nation, including d.c. and alexandria. the lyft and uber drivers tell us they like driving for the companies, but they want to be able to make a living wa>>. feel upset. >> reporter: gerald has been a lyft driver for more than a year. >> i do my best to try to give people rides where they need to go, help them out. >> reporter: but he feels lyft isn't helps him out. he, along with 30 uber and lyft drive slowly at reagan national airport to protest, at a time when bo companies areraking in billions of dollars from investors. gerald says he only makes around $800 to $1,000 a week driving 70 to 80 hours. >> i could work at mcdonald's and make about the same amount without all the risk. >> reporter: he wants to make at least $2,000 a week. uber and lyft drivers say they've been fighting for years for the ri

>>coming up if you plan on catching an uber or lyft from sfo. there's a big change you need to know about we'll show you the new pickup spot. also a medical breakthrough to tell you about how children can be screened for autism at a younger age and that means they can get. >>treatment sooner. >>study suggests that children can be reliably diagnosed with autism sooner than what is now recommended autism is a spectrum disorder that can affect social skills behavior and communication abilities. a current guidelines state that kids can start being screened during regular doctor visits between 1824 months old, but in a new study just published autism detection and diagnosis can start with high accuracy at just 14 months old. researchers say that could lead to children with autism having the opportunity to start therapies earlier and doctors say earlier intervention may increase their skills by the time. school comes around. >>and you might recognize this man seen on a the covers of hundreds of romance novels, the bay area man posed to make dreams com

if you think of uber vis-a-vis lyft, you'd rather be the bigger fish in a war like that. i think uber's in great shape, they'll be fine, they'll get through this and when they come out of other side of the pricing competition, as the professor said earlier when he was on, as long as the price of the fare to j.f.k. doesn't go up to $93 from $43. >> a challenge that we don't always think about sitting here on wall street is employee morale in a situation like this. if people hoped the price would be higher and they viewed this as a validation of their calculation about being there, it can be a challenge internally even more than externally. >> you couldn't be more right. i think people overlook that these employees are now living in a world where the stock for the first time not only goes up but its will goes down when you haven't been through that and you've been working at the company for four or five years and everything is to the right, it can be a -- there are a lot of people who love boast travis and dara. two different styles of leadership dara, great person to be ta

so lyft drivers are in on it, too. live from san francisco, jack economy ward. >>> a live look at capitol hill where the house judiciary committee is moving forward with a hearing to hold attorney general william barr in contempt of congress. last month barr released a redacted version of mueller's report but did not establish a criminal conspiracy between russia and the trump presidential campaign but there was no conclusion on whether president trump obstructed justice. mueller did not charge trump but did not exonerate him either. >>> president trump is introduction a new element to the multibillion dollar disaster aid bill funding for his border wall. the trump administration is trying to add border wall funding and spending to the measure. that's complicating disaster aid talks. the money is expected to go to victims like those in paradise last year but still no i'd for puerto ricos a it recovers from hurricane maria. >>> the board of forestry and fire protection will have an upclose look ated fire. they will exam

uber is coming next week this is a very important week for this stock for uber and for lyft and lyftit. >> up next, your tweets and the final call i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪ ♪♪ ♪♪ ♪♪ >>> time to take your tweets ryan asks, when would be the best time to use a butterfly strategy >> this is something you want to do going into a catalyst when options premiums are elevated. you want it to run to that short strike so you want to keep those things short dated and you're looking for situations where options would be a little rich >> time now for the call >> uso playing long. >> i think you

we want to know is lyft spend winning them any share i'm told lyft will be issuing second quarter and full-year guidance analysts expert company to narrow losses next quarter while still growing revenues these numbers are going to be important as well. and keep in mind we do have preliminary numbers for uber's first quarter when it updated its prospectus its losses are growing while its revenue growth slowing a disappointing report from lyft could reflect badly, or the flip side, a good report could reflect well on these ride-sharing companies ointds just as they're becoming available to public market investors. gu gu guys >> we have full team coverage of the earnings after the bell. in addition to deirdre and lyft we're going to hear from ea, trip advisor and sprint. we'll break the numbers coming up joe, i'll start with you after hours earnings at this point from not the biggest companies in the world, could they change sentiment? >> is apple or amazon going to recourt again? i don't think that's going to be the el ix ir >> and you're encouraged by what you've seen so far in earning

what does the future look like for lyft and uber.h what happened with lyft and these earnings. not only did they come out with more than $1 billion in losses, the net loss, but they said a lot of this was related to the ipo and the process of going public. talk about lyft's earnings from last night. >> yes. so thanks for having me on. one of the things we do for our clients is we help them to context walualize the listing market. it's important to put this into the context of the listing market. last year, we saw $210 billion in global ipo volume. that was up 6%. a lot of that was driven by technology, accounting for over 19% which was a six-year high. we're seeing interesting themes and what we can see is a very healthy ipo market. cheryl: just real quick about lyft, it doesn't bother you about the earnings report last night? you think this ipo was a success? >> i think it's important to contextualize the ipo. investors would prefer transparency, more information from lyft. if you look at the broader context and the way deals have b

paul: david, what could lyft potentially do to turn a profit?charge more but that will not be very popular. david: that is what they will almost certainly have to do at one point. we will see uber and lyft both raising the prices in the not so distant future. very similar companies. uber is just the four times larger version of lyft in many ways in terms of its economics. they are huge money-losing enterprises. they could raise prices. i think many people have come to depend on their services. a certain percentage of them would pay more. they have been gambling on this long-term possibility that self driving cars will come in and that is there salvation -- their salvation. an analyst quoted in a bloomberg article today was saying once that happens, they will have to clean the cars, repair the cars, store the cars, and it becomes more like an airline business. they would have to take those costs on that are currently done by the driver. it is not a pretty picture long-term financially for these companies. paul: self driving cars, even if you beli

by the same token everybody saw what happened with lyft.idn't hurt that lyft reported earnings this week and the stock went down further. this is remarkable and global story and they have a whole lot of moving parts with it, including uber eats and uber transports. it is a different story than lyft, they have a different footprint but the same unique problem. that is why the stock is moving sideways. i want to bring in kathleen smith. we fixed her problem. thanks for joining us. >> thank you. >> unusual thoughts on the uber ipo? >> i would call it the uber belly-flop. this is not a kiss of death in time the company will prove itself in public markets. i think investors should hold back until the stock has traded for a while. as you know it's a technical black eye to break the ipo price. it traded lower already. chances are it will retrace what already happened. there will be some good times to enter into the uber trade. you know it, would be nice to wait and hear uber's first earnings report or results. they're not earnings. when they, they

for lyft, private market investors said lyft is worth $15 billion. much higher price and is still trying to find that level of support. definitely better than $87 a share. morgan stanley got a lot of credit for freeing the value range of the work -- of uber much closer to its valuation. from looking at all of the numbers, you cannot get to a discounted cash flow valuation unless you look for proxies. hasd: neither lyft or uber made any money or has any prospect of making money. what you look at to say that is when they will make money in terms of value? rett: what we did at our place, looking at uber, is looking quarterly to see how they ever make money and what were the settings that allow them to do that. it turns out the economics are reasonably favorable for uber. when the competitors are blowing headlines, the model works. when everyone is discounted to attract new drivers and get new customers, you have to invest to do that. that gets you to the amazon analogy. to befavorable for uber used as the amazon of its category. a totally dominant playe

. >> all right, coming up, lyft shares cruising higher today but still down 1% since its ipo.into earnings and a question for the traders of course, you do. give us a tweet. options actions you may be lucky enough to get it answered. more "options action" right after this (indistinguishable mut >> announcer: "options action" is sponsored by think or swim by td ameritrade. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade. what do you look for i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work

lyft is now down about 13% since the ipo and the company set to report earnings next week.reason we set this trade up is this was a better way to take a long position in the stock because the options market was implying it would go lower and there was interest in it if you were short that put you ended up buying the stock and closed at 62.5 and now it's implying a big move into earnings and if you're expecting it to gap higher and not really, one the things you want to do to continue to have those low and four bucks and maybe more and you own it at 60 and now the effective price would be down and the idea here is to keep lowering your cost basis in these shares if you can. >> very interesting, though, and the stock closed at 62.5 and the implied move between now and next friday and it's about $7 in either direction that seems pretty rich and high short interest is still there and uber is coming next week and for uber and for lyft and what's abkely to be good news that lyft probly rallies out of it >> up next, your tweets and the final call i don't know what's going on. i've

>>g up, some uber and lyft drivers send a message to the companies ahead of uber's wall street debut.cgoogle's sendar pathay called it one of the most important topics of our times. having access to people's data makes google's service run better and that all users should expect their privacy to be protected and he said privacy protection cannot be a luxury goodoffered only those who can afford to buy premium products and services. tech companies more broadly have come under fire for lawmakers about how they handle their customers' information. >> general motors said to admit todayhat it is in discussions with electric drugmaker worse force to sell its idle plant in lordstown, ohio. the deal has not yet been finalized and gm sent a statement that president trump first revled it was in the works. it announced the creation of $450 new manufacturing jobs at its facilities in toledo. theylanned to cut costs in order to free up cash in electric cars and ride sharing services. honda will cut the numbers of models toward research and development. toyota expects its cost reducked efforts to l

our streets are packed with Über and lyft.t popular when i say it, but i see this as a huge issue of having our traffic congested. i wonder why we can't control the number of cars coming into the city. >> so if you're not popular, i'm not either, because i'm saying the same thing. you're preaching to the choir. so the state regulates Über and lyft. that's because they're considered livery. i am not the expert on why the state is, but as a city and county, we cannot do anything about the number of providers -- the number of drivers, the number of cars, but our transformative policy agenda absolutely does. we ask for two things 100% related to the issues that you just raised. number one would be local regulation of tnc, which may come out in the form of capping the number of vehicles on the road which is what new york city just did. they have a cap. but we cannot do that unless we change state law. the other would be, it's called congestion pricing and new york also just passed it. it comes in really lots of forms, but the goal

lyft did well its first day and also tanked. lyft said it wasn't profitable and could have been. looking at lyft's trajectory, the smaller guinea pig and see uber may fall into the same trappings. the companies have marketed themselves as different companies. the amazon of transportation. so, you know, things can change. >> all right. how much is driver unrest a problem for both of these companies? i mean, we're here today to mostly talk about uber. the same situation applies for th ug right. these companies' business is based on drivers. so, if the drivers aren't happy and the drivers leave, they won't have a business, right? until we have self-driving cars. >> isn't that what the whole thing is based on in the long run. approval on driverless vehicles becomes a thing across the country. but wouldn't it be uber's goal down the road to have no drivers and have the cars drive themselves. no cost for drivers. >> they take that ingredient out of the equation and it will be cheaper for uber. i mean, they'll have to pay for all the technology to build the cars. >> sure, sure. so, what

emily: lyft also ended the day down more than 7%, so they felt in tandem.lling you? do they think it is the next amazon of transportation or is it the ebay? >> i have said it all along, we are going to freak out today, but there are investors that remain in the story and understood that they did not get everything about amazon when it came along and now jeff looks like a genius. there is no way you can model how this company makes a profit. you are depending on total transformation in the transportation industry. so when you have these really dueling approaches to looking at the stock, we had lyft beat analyst expectations and the stock still went down. there is a disconnect between the market that wants to think about this in terms of revenue and then a lot of skepticism outside of the. emily: you put out a note last night before the company went out of the gate, dan. -- >> this is not an ideal stock coming out. especially given the microscope uber is under. in our opinion, in terms of what we see in the next 24 months, this does not move the needle, but i

i think because lyft went first. performance of lyft in terms of stock there, weighed down on uber.ut uber has a bigger name and market. it is also losing bigger than lyft at the moment. stuart: let's summarize it like this. ray wong wants in, but he will wait two or three months before things settle down before he buys it, am i right. >> that's it. look at the performance next quarter or two i -- you i nadarkhani whether it make it or not. stuart: thank you, ray wong. there is another story, china trade negotiations which indeed are happening right now in washington, d.c. time to bring in curtis ellis, one of our trade guys. curtis, welcome to the show. seems to plea we have have a standoff. i think it the ball is in china's court. it is up to make the move, right. >> absolutely. president trump is not backing down. he is defending the american people against cyber hacking, intellectual property theft, state-owned enterprises undermining free enterprise capitalism around the globe. they're dumping products below market cost, destroying american companies, destroying american jobs,

. >> we begin with uber and lyft drivers making a stand for better pay. uber is about to raise millions of dollars by going public this thursday while lyft has already cashed in with wall street investors and now rideshare drivers say they want a piece of the action. wilson walker on what could be a key moment for uber and lyft drivers. >> because this is the birthplace, the hub we want drivers to show up. eric baker will go on strike tomorrow asking other drivers to do the same in a collective protest scheduled ahead of uber's ipo. >> they stand raise billions and we are sitting here like wow you are constantly cutting our pay. >> reporter: drivers are hoping for vast participation we found plenty of uncertainty behind those wills today. >> i hear it not exactly sure what drivers are going to do. another set of opinions on city streets. >> sympathetic but not too sympathetic driver suffering in an industry crippled by ride sharing. >> they will be billion years in drivers her will be struggling. >> i think this is a watershed moment not just for uber but

connell: uber don't become lyft.e chinese delegation. we'll look at u.s. trade rep's delegation. here they come right on time. set to meet with robert lighthizer and steve mnuchin inside the building. looks like they're waiting for them. there they are. melissa: that is crazy. supposed to be at 5:00. here at 4:58. 59, one minute early as they come on in. as you mentioned, these are new tariffs that are supposed to go into effect. there is games manship for a second. connell: do we have protesters or somebody there? seems like a little yelling in the background. i may be making too much of it. lighthizer and mnuchin are there at the door waiting for liu he to come up. i guess they will have dinner. you wonder if there is enough time to get anything done. tariffs go into effect midnight and get something done tomorrow. melissa: it is possible. they had to take a stand. they retraded on difficult elements. took out different things that already been agreed on in trade circles you can't do that. cone cone no retrading. m

lyft also issued guidance above expectations for the current quarter. which has been struggling since its i'm was vol volatile in the after-hours session to 59.34. with the uber ipo expected in just a few days how do the ride share business models compare deidrebosa with the details. >> lyft and uberatreing each other for riders,rs dri and market share. >> it's very much a iand grab hethe united states where lyft operates right now. we think that only 2% of all passenger miles are currently being travelled on these sheer transportation networks like lyft and we think that will go a lot higher. >> b when it comes to the longer tomorrow they look like very different companies and lyft operates in north america while uber's footprint is from north america, to latin ur america, ee, australia and the middle east and ber's portfolio spans ride sharing, food delivery and trucking and fine cars. >> both haveew a f important things in common. one of them, huge losses. >> they don't even have fidelity around the idea of profits and they're, you know, i don't want