Uber, Lyft Options Investors Buckle Up for a Wild Ride

Uber, Lyft Options Investors Buckle Up for a Wild Ride

Assessment

Interactive Video

Business

University

Hard

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The video discusses the financial challenges faced by Lyft and Uber, focusing on their burn rates and the impact of raising prices. It highlights the significant financial losses both companies are experiencing, with Lyft's operating profit loss at $377 million and Uber's at nearly $5 billion, including IPO costs. The video also covers the volatility in options pricing, with a notable 11% swing expected after earnings reports. Investor sentiment is analyzed through Uber's put-call ratio, indicating increased hedging activity as the companies approach their earnings reports.

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5 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

How did Lyft's burn rate change over the last year according to the text?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the expected operating profit losses for Lyft and Uber in the third quarter?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the fundamental questions regarding the business model of Lyft and Uber?

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

What does the pricing in options suggest about investor sentiment for Lyft and Uber?

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

What is the significance of the put call ratio mentioned in relation to Uber?

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