Uber shares tumble as 2nd-quarter forecast disappoints

Uber forecast second-quarter gross bookings below expectations after missing the target for the first three months on Wednesday, sending it shares down nearly 7 per cent before the bell, reports Reuters.
The weakness in a key metric that indicates the total value of revenue earned on the Uber platform signals demand weakness for the company's ride-share and food delivery services.
In contrast, smaller rival Lyft posted better-than-expected result and forecast strong second quarter on Tuesday, saying it saw an industry-wide pickup in ride-share demand.
Lyft and Uber have been racing to increase their reach in the ride-share market of the United States and Canada, especially since Lyft hired David Risher as CEO in last April.
Besides aggressively cutting cost, Risher has managed to add users to Lyft with shorter wait times and competitive costs.
Uber said it expects second-quarter adjusted core profit, a key profitability measure, between $1.45 billion and $1.53 billion, with its mid-point of $1.49 billion coming above market expectations of $1.47 billion, according to LSEG data.
It expects gross bookings, or the total dollar value earned from its services, in the range of $38.75 billion to $40.25 billion, below estimates of $40.04 billion.