Jim Cramer takes on Uber, Lyft, DoorDash and Instacart

by CNBC Jim Cramer on Monday on the condition that he would buy four major stocks in the gig economy sector: Uber, Lyft, DoorDash and parent company Instacart Maplebear.

“After hearing from all of these companies, what I see is a confusing situation: Uber, DoorDash and Instacart are all lower after earnings, while Lyft has gained a bit of ground,” he said. position”. “But the reality is much more complicated than that.”

• Uber: Cramer said recently of Uber a quarter delivered solid results, but the ride-sharing company reported some weakness in bookings. For Cramer, that’s what caused stocks to fall sharply after last week’s earnings report, raising concerns on Wall Street about cash-strapped consumers. The stock has yet to recover, but he said he remains optimistic about Uber and feels good about the company’s growing profits and cash flow. But Cramer added that investors should monitor the company to see if it has solvency problems.

• Lyft: Lyft reports good a quarterand Cramer noted that, unlike archrival Uber, it actually saw higher-than-expected bookings. He said it appears Lyft “finally has a more competitive platform” no longer consistently losing market share to Uber, and the stock jumped in extended post-earnings trading. Cramer said he is pleased with how CEO David Risher is managing the company’s turnaround and is optimistic the stock can continue to perform well.

• DoorDash: Cramer said DoorDash’s quarter was good, but weak guidance sent its stock plunging. He pointed out that food delivery services “deserve the benefit of the doubt” because they spend money to grow their business. While Cramer said he has confidence in the stock, he cautioned that its performance may be unpredictable until DoorDash demonstrates earnings improvement, saying that the Investors shouldn’t expect a warm reception from Wall Street anytime soon.

• Maplebear: Although he was impressed with Maplebear’s recent quarterly report, Cramer said he was hesitant to recommend parent company Instacart because he wasn’t sure what the grocery delivery landscape would look like long term. Amazon He continues to strive for dominance in the sector, he said, adding that competing with the tech giants is not necessarily a good idea.

Uber, Lyft, DoorDash and Maplebear did not immediately respond to requests for comment.

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Disclaimer The CNBC Investment Club charitable foundation holds shares of Amazon.