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Believe it or not, Uber and Lyft’s Are on a Wild Ride Despite COVID-19!

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Uber Stock Market Today

Ride hailing services Uber and Lyft entered 2020 gunning for profits, but the spread of coronavirus in the U.S. is feared to threaten those plans as companies throughout the globe are facing unforeseen challenges. Due to governments imposing self-quarantine to Americans and Europeans  in an effort to contain the spread, the demand for ride hailing is also expected to plunge. But the outbreak is also believed to highlight important distinctions between the two fierce competitors, moreover the business model differences between Uber (NYSE:UBER) and Lyft (NYSE:LYFT) and reveal which one is more resilient. Yet, despite the initial drop and quite a dramatic one as Uber shares fell about 50% this year and Lyft 65%, the end of last week ended up being a wild ride as Uber’s shares rose 38 percent last week and Lyft followed with 29 percent.  And it’s all because of Uber’s analyst call where the CEO confidently stated that the company has enough cash to get through pretty much anything that 2020 might bring. Confident indeed as the pandemic will also amplify their weak spots- and we already know some of them.

Markets crashing

As the outbreak wreaks havoc on financial markets, and threatens to upend the economy, even the Dow Jones Industrial Average plummeted in its worst single-day crash since 1987. Neither of the two ride hailing companies issued a revision of their financials when all this started. When the pandemic was ‘only’ beginning to be in the air, it seemed like people were shifting to Lyft or Uber from other modes. But things went downhill pretty fast and that quickly stopped being the case, especially since a significant chunk of their business belongs to airport rides with flights being cancelled and airports in Europe closed. As for Uber, an estimated 15% of trips are attributed to airport rides. If plummeting demand for flights serves as a rough indicator, airport trips should see a corresponding dramatic drop in demand. And that is immense as United Airlines Holdings Inc (NASDAQ:UAL), JetBlue Airways Corporation (NASDAQ:JBLU) and Southwest Airlines Co (NYSE:LUV) referred to the impact of coronavirus as even worse than 9/11, and this impact will last for months to come. Only last week, Uber has already seen ride volume drop 70 percent  in cities most affected by the outbreak and the pandemic is yet to reach its peak.

So, all this confidence does seem a bit surprising especially considering Uber’s CEO Dara Khosrowshahi evaluated the coronavirus at the beginning of March as “not material” because geographies affected at the time contributed only partially to  its main business. That was the case before the World Health Organization (WHO) declared coronavirus a global pandemic.

And it used to be so good…

On March 4, Lyft CFO Brian Roberts joyfully revealed that last week was the single biggest week in Lyft’s history, both when it comes to revenue and rides. Lyft was already doing great since early February, when Uber moved its profitability target to the end of 2020 and the increased investor confidence brought Lyft along. Lyft has targeted the end of 2021 to reach the same goal. Both competitors were focused at growing top-line results and fortifying their bottom line to reach profitability in the near future.

Uber at least has Uber Eats to its rescue

It’s a supply problem as well as a demand problem, Even food delivery is better for drivers or at least perceived as better since he impression is it’s less risky –you’re grabbing a bag of food, you can wear gloves if you want, or there’s  a no-contact feature where you can drop deliveries off at the door.” And COVID-19 will only further emphasize the different business models as it tests their resilience

While Lyft sells personal mobility services and that includes offering car, scooter and bike trips in the U.S. only. On the other hand, Uber has a food delivery business and a freight logistics division, Uber Eats and Uber Freight respectively. And it is this segment that could only amortize its coronavirus-related EBIDTA losses.

Lyft’s new meal delivery option

Lyft announced it will be offering delivery of critical medical supplies and meals in this critical time. Target groups include the elderly, those living with chronic diseases and students who usually get subsidized lunches through school.

The underlying problem is far greater

An immense material hit is certain. But any hit to both Uber and Lyft’s whole fiscal year (2020) results is likely to push profitability timelines. Both companies acknowledged in their annual reports that a “pandemic or an outbreak of disease or similar public health concern, such as the recent coronavirus outbreak” could materially affect their results. The coronavirus had also led to production delays with bikes, scooters and automobiles that are crucial to their business. And unfortunately, we already know with certainty there is no company who will be unharmed as the global economy will be hit far more than initially anticipated. Perhaps the most dangerous thing is that they were invented to support a lifestyle that won’t be possible for quite some time as the world is forced to adopt a much slower pace. and Considering human psychology, who knows how consumer behaviour will change after spending weeks and maybe even months in isolation. For the better or worse, we’re all in this together. The two companies also need to find ways to protect their employees as Uber already urged the Congress to include its drivers in the financial assistance program. But when it comes to the short-term, liquidity is key in any crisis and Uber’s $10 billion in unrestricted cash as of the end of February is beyond comforting for the time being. But nothing will ever be the same once all this is over- nor it should be as we’ll hopefully learn a lot from this and use it as an opportunity to improve current practices.

This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . Ivana Popovic does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com Questions about this release can be send to ivana@iamnewswire.com

BenzingaEditorial

Closing a Light Earnings Week

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Stock Market Tumble

Recent earnings reports imply that the positive momentum that made its appearance early July is still in the air. Last week, Adobe (NASDAQ: ADBE) and FedEx (NYSE: FDX) treated us with blockbuster results that confirmed the favorable trends, contributing to overall recovery of the U.S. economy.

This week, it was up to Nike’s (NYSE: NKE) deliver a blockbuster earnings report. Its shares surged and lifted the Dow Jones industrial average as the sports retailer smashed both revenue and profit expectations.

US stocks rose on Wednesday on strong earnings and progress on the upcoming COVID-19 vaccine as Johnson & Johnson (NYSE: JNJ) announced it is starting the third phase of its candidate in a largest study to date that will enroll up to 60,000 participants.

On the other hand, this week was not so kind to Tesla (NASDAQ: TSLA) whose shares dropped after its Battery Day event on Tuesday failed to delight investors. Musk laid out a plan to get to a $25,000 EV it expects to begin selling in three years but without showing any tangible progress.

Gold fell but oil prices climbed. Oil’s international benchmark jumped 1%, to $42.15 per barrel as BP (NYSE: BP), Royal Dutch Shell (NYSE: RDS-A)(NYSE: RDS-B) and other European energy companies are restructuring their core business to dramatically reduce emissions while investing heavily in renewable energy. Meanwhile, the American oil giants Chevron (NYSE: CVX) and Exxon Mobil Corporation (NYSE: XOM) are going in a far different direction.

Although it’s premature, the early reports suggest there is hope for Q3 and improved outlook in a variety of sectors. As for the third quarter of 2020, total S&P 500 earnings are expected to decline 23.1% on 2.9% drop in revenues, which is an improvement from Q2 expectations and figures.

Next week, Thor Industries Inc (NYSE: THO), Conagra (NYSE: CAG), Constellation Brands (NYSE: STZ) Bed Bath and Beyond (NASDAQ: BBBY) will give their own contribution to solving the outlook puzzle.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Vaccine Updates

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Corona Virus and the Stock Market

Besides saving lives and the global economy, we are expecting three things from the upcoming COVID-19 vaccine: safety, immunogenicity and efficacy. But we never had a 100 per cent efficacy when it comes to respiratory viruses, so anything between 50 and 100% will be the best we’ve got as the WHO believes everything above 50 per cent efficacy is acceptable. So, how far away are we from this goal?

Buoyed by positive results in its earlier studies, Johnson & Johnson (NYSE: JNJ) has now entered the final stage of clinical trials for its COVID-19 candidate. Although they started a couple of months behind others in the US, its trials will by far be largest with 60,000 enrolled participants.

The advantage of J&J candidate – one dose and no sub-zero storage temperatures

J&J’s vaccine is made with slightly different technology than others as it is modeled on its prior Ebola vaccine. It could result in considerable advantages over some of its competitors in terms of dosage and storage. But it’s up to Phase 3 trials that compare the effects of a vaccine with those of a placebo to determine if a single dose is indeed effective.

Disadvantages of Moderna and Pfizer candidates – significant logistics hurdle

Adenovirus vaccines must be kept refrigerated but not frozen, unlike the two front-runner vaccines, by Moderna (NASDAQ: MRNA) and Pfizer (NYSE: PFE). These depend on bits of genetic material known as mRNA. Besides the freezing requirement that makes distribution problematic, there vaccines also need to be taken in two doses, a few weeks apart.

Side-effects

When participants received a dose more than double the strength of the current shot of Moderna vaccine, 20 per cent experienced significant adverse effects such as fever and severe headaches. AstraZeneca was forced to pause its study for the same reason. Although the trial resumed in the UK and elsewhere, the research remains on hold in the US.

Candidates – US

Johnson & Johnson is now the fourth company to begin large-scale clinical trials for a COVID-19 vaccine in the United States, behind Moderna, Pfizer/BioNTech (NASDAQ: BNTX) and AstraZeneca (NYSE: AZN). According to Anthony S. Fauci M.D., this is an unprecedented speed made possible by decades of progress in vaccine technology and a coordinated approach that expanded beyond the scientific community, supported by governments and industries.

Candidates- Global

Financial Times has reported that there is a total of more than 300 vaccine candidates, according to the World Health Organization. Less than half are being tested on humans. Only nine of those have reached phase 3 trails which is the final stage before possible implementation. One of the nine vaccines is UK’s Astrazaneca. Two of the most advanced US candidates come from pharmaceutical company Pfizer, in partnership with Germany’s BioNTech, and Moderna. Four vaccines are being produced in China by Sinovac Biotech and one in Russia by the Gamaleya Research Institute which just boarded the phase 3 train this month. Then, there are CanSino Biologics (OTC: CASBF) and Sinopharm (OTC: SHTDY), which has two different shots in development and one is being led by Johnson & Johnson. All nine have already signed purchase agreements with governments around the world.

Countries

According to data from Deutsche Bank, the UK has built the largest and most diversified vaccine portfolio, on a per-capita basis, having pre-ordered more than five doses per citizen spread across six leading vaccine candidates. It is closely followed by US, Canada and Japan.

When it comes to the overall spender, the US government’s Biomedical Advanced Research and Development Authority has distributed more than $10 billion in funding for vaccine candidates, either via direct financing or through vaccine procurement agreements.

Canada has allocated $1 billion to secure at least 154 million doses of a future vaccine, signing deals with Pfizer, Moderna Inc, Johnson & Johnson, and Novavax (NASDAQ: NVAX) and most recently, Sanofi (NASDAQ: SNY).

The goal

The stated objective of the AstraZeneca, Moderna, Pfizer/BioNTech and J&J vaccines is to prevent the life-endangering symptoms of Covid-19. Their goal is to prevent people being admitted to hospital, going to intensive care and dying, as summarized by Andrew Pollard, who is leading the AstraZeneca trials at Oxford university. But preventing an asymptomatic infection entirely is likely to be a much bigger hurdle. Given the growing chorus of experts warning that vaccines will only offer a temporary immunity, making subsequent shots just as important. Only Johnson and Johnson and CanSino Biologics Inc are aiming for single dose shots.

If successful, Johnson & Johnson expects the first doses to be up for emergency use authorization from the US FDA at the beginning of  next year, while on track to make a billion doses a year. If this is the case, it would greatly help efforts to curb the pandemic.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Four Evolving Lighting Companies

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Solar Stocks and Corona Virus

To run their operations, companies need lighting – among other things. Moreover, this lighting has to be energy-efficient to give the world a shot at taking control over climate change. LED lighting market has been intensively growing over the last decade. Its strength is a direct consequence from energy efficiency regulations and reduced technology costs. An average building uses about 15% of its energy for lighting therefore the savings potential of LED lighting across the globe is immense. But, lighting has expanded beyond its traditional purpose of illumination to add additional value such as sustainability. Consequently, it has also become a highly competitive market. Below are four companies that are well-positioned to benefit from this growing trend.

Acuity Brands

Unfortunately, Acuity Brands Inc (NYSE:AYI), the parent company of Acuity Brands Lighting was among the S&P 500’s biggest fallers on Wednesday September 23. The stock experienced a 2.56% decline to $98.07. But this is not the bigger picture as widespread adoption of Far-UVC lighting could create a large retrofit revenue opportunity for this industrial technology company. It is better to wait for October 8th for the company to announce its fourth quarter results to get a better idea of this prominent company.

Acuity Brands provides lighting products for the whole range of applications: from commercial to residential. Their customers are electrical distributors, electric utilities, retail home improvement centers, and lighting showrooms. Their offerings include luminaires, lighting controls, lighting components, and integrated lighting systems that use a combination of light sources. The majority of the firms’ revenue is generated in the United States, but it has operations across Europe and Asia as well, counting 12,000 associates.

Orion Energy Systems Inc

Orion Energy Systems Inc (NASDAQ:OESX) is the provider of LED lighting systems while implementing IoT systems and providing ongoing maintenance service. When the company reported its FY2021 first quarter results, it revealed it secured a contract with a large speciality retailer. The company just announced that its CFO William T. “Bill” Hull, plans to retire in November following its second quarter results, so it is in for a new chapter this year.

Cree Inc

The stock of Cree Inc (NASDAQ:CREE) is soaring and is possibly approaching a major achievement in its business. It provides lighting-class LED for power and radio-frequency applications with an international presence spanning across the United States, China and Europe.  On June 28th 2020, the US$6.6 billion market-cap company posted a loss of US$191.7 million for its most recent financial year. Although its shareholders might be concerned after seeing the share price drop 13% in the last month, they have received really good returns over the last five years. In fact, the share price was 154% higher on September 23rd. To some, the recent pullback isn’t surprising after such a fast rise. But this does not change the fact that Cree has rewarded its shareholders with a total shareholder return of 22% during the last twelve months.

Energy Focus

Energy Focus Inc (NASDAQ:EFOI) recently won a $4.8 million indefinite-quantity contract to provide LED lighting to U.S. Navy for its demanding exterior shipboard use. LED lights use up to 80% less energy than traditional lighting, while meeting the required illumination levels for combat, and general operations.

Additionally, Energy Focus also reported that it has gained the right to serve all government agencies in the U.S. Its patent- pending EnFocus™ lighting control platform embodies the true spirit of “Triple Bottom Line” benefits:  financial, environmental, and health, while being affordable and accessible. In other words, EnFocus™ can enhance occupant well-being and maximize energy savings while being affordable and without increasing security risk. The beauty of its model is that it can span across industries.

Outlook

The global LED lighting market was estimated to be $67,714.7 million in 2019. This is an increase of 3.2% from 2018. Over the last two years, we have observed major players either selling a part of their business or being acquired by another company. Smart LEDs are wanted for the controllability they offer. Companies are going a step forward with circadian lighting that supports well-being. Leading lighting players are also working with healthcare facilities to accelerate the use of UVC LEDs to eliminate the threat of infection arising from contact. Horticultural lighting also did great in terms of demand during the past few years. To cut the story short, there will be many new chapters ahead when it comes to lighting.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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