Why Getaround Shares Are Jumping Today
Portfolio Pulse from Nabaparna Bhattacharya
Getaround, Inc. (NYSE:GETR) shares surged in premarket trading after announcing a workforce and operations restructuring plan aimed at cost reduction and aligning with the globalization of the carsharing business. The plan includes a 30% workforce reduction in North America, expected to save $7 million annually. Despite restructuring costs of up to $1 million, Getaround is expanding into gig carsharing for drivers of Uber Technologies, Inc. (NYSE:UBER) and DoorDash, Inc. (NASDAQ:DASH). The company reported a 42% year-over-year revenue increase to $23.8 million for Q3 2023 and secured a $20 million debt facility from Mudrick Capital Management. Getaround forecasts a gross booking value of $200 million to $205 million and an adjusted EBITDA loss of $(68) million to $(70) million for FY 2023. GETR shares rose 6.40% to $0.2811 in premarket trading.
February 08, 2024 | 12:41 pm
News sentiment analysis
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POSITIVE IMPACT
DoorDash could indirectly benefit from Getaround's expansion into gig carsharing, potentially increasing the availability of vehicles for DoorDash drivers.
Similar to Uber, DoorDash could indirectly benefit from Getaround's expansion into gig carsharing by increasing the availability of vehicles for DoorDash drivers, which could improve driver availability and service efficiency.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Getaround's stock price is rising following the announcement of a significant restructuring plan, including workforce reduction and expansion into gig carsharing, alongside a positive revenue report for Q3 2023.
The positive market reaction is likely due to the anticipated cost savings from the workforce reduction and the potential for revenue growth from the expansion into gig carsharing. The recent revenue growth and secured funding further support investor optimism.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Uber may see indirect benefits from Getaround's expansion into gig carsharing, potentially increasing the availability of vehicles for Uber drivers.
Getaround's expansion into gig carsharing could indirectly benefit Uber by increasing the pool of vehicles available to Uber drivers, potentially enhancing driver recruitment and retention.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50