SDI Productions/E+ via Getty Images Uber Technologies (NYSE:UBER) and DoorDash (NYSE:DASH) shares rose on Friday even as investment firm JMP Secu
SDI Productions/E+ via Getty Images
Uber Technologies (NYSE:UBER) and DoorDash (NYSE:DASH) shares rose on Friday even as investment firm JMP Securities cut estimates on both companies, citing foreign exchange headwinds and the possibility for slowing demand.
In a note to clients, analyst Andrew Boone wrote that although there is a “shift” from consumers buying goods to experiences that is likely to benefit Uber’s (UBER) mobility business in the near term and the pandemic has altered food delivery trends, third-party data showed a slowing in June.
Boone noted that DoorDash (DASH) saw daily active user growth slow to 9% year-over-year in June, compared to 15% growth in April and May. Comparatively, Uber Eats (UBER) daily active users fell 7% year-over-year in June, compared to 2% growth in April and May. The analyst also noted that desktop traffic also slowed, as overall food delivery demand likely slowed in the month.
As such, the firm is “proactively lowering numbers given our expectations that management teams will take an increasingly conservative approach to guidance,” Boone wrote.
Uber (UBER) gained nearly 3% to $21.25 in early trading, while DoorDash (DASH) tacked on slightly more than 2.5% to $71.16.
The slowdown in data occurred before Amazon (AMZN) announced a deal with Just Eat Takeaway.com (OTCPK:JTKWY) to add a free Grubhub+ membership for U.S. Prime members.
Boone has a market outperform rating on both Uber (UBER) and DoorDash (DASH) and price targets of $69 and $150, respectively.
Late last month, Uber (UBER) announced it was bringing back its shared rides feature in several cities across the U.S.
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