Lyft stock has a pattern of falling after its earnings report despite posting strong numbers. That may be because the company is still unprofitable and trades at a high valuation, meaning lofty expectations are baked in.
Full Answer
Why did Lyft stock drop today?
Lyft Inc. shares fell sharply Wednesday, a day after the ride-hailing company reported results that included a 125% increase in revenue amid a continued recovery from the COVID-19 pandemic, but softer than expected guidance.Aug 4, 2021
Is Lyft a good stock to buy now?
Bottom line: Lyft stock is not a buy right now.Mar 14, 2022
Is Uber buying Lyft?
In 2014, Uber tried to acquire the app with no success. Then, in 2019, Uber was prepared to buy Lyft for $7 Billion, but the ship had sailed, and Lyft rejected the idea, and instead stayed a separate entity.Mar 3, 2022
Is Uber a good stock to buy today?
Uber Technologies' stock is a better bet than shares of other ride-hailing companies—a secular winner that is clearly worth buying at its current low valuation, according to Deutsche Bank analyst Benjamin Black.Mar 11, 2022
Is Lyft overvalued?
Price to Book Ratio PB vs Industry: LYFT is overvalued based on its PB Ratio (8.9x) compared to the US Transportation industry average (1.8x).
Is Lyft or Uber better?
Research firm Statista notes that Uber has significantly higher market share, which means you might have more driving opportunities than with Lyft. Both companies provide discounts on auto-related expenses and offer perks for drivers. Uber and Lyft also have similar payment policies.Jan 21, 2022
What company owns Lyft?
John Zimmer is the co-founder and president of Lyft, an on-demand transportation company, which he founded with Logan Green in 2012. Lyft facilitates over one million rides a day, and is available to 95% of the population of the United States as well as in Toronto....John ZimmerWebsitewww.lyft.com6 more rows
What company is bigger Lyft or Uber?
The breakdown of February 2022 sales between Uber and Lyft reveals that market share has remained stable, relative to prior months. Uber still dominates, taking in 70 percent of U.S. rideshare spending.Mar 15, 2022
Is Lyft or Uber bigger?
Uber dominates ride-sharing, taking in roughly 70 percent of US riders spending and leaving Lyft with the rest. But this week's earnings reports revealed a much sharper divergence between the two companies than we've seen in the past, namely around side hustles.Feb 11, 2022
What stock owns Uber?
Top 10 Owners of Uber Technologies IncStockholderStakeShares bought / soldThe Vanguard Group, Inc.4.35%+6,091,548Fidelity Management & Research Co...3.70%-17,956,465Morgan Stanley Investment Managem...3.38%-294,786Jennison Associates LLC2.54%+9,449,7436 more rows
Is Tesla a good buy?
Tesla has a top Growth Score of A and belongs to a bottom-ranked Zacks industry (in the bottom 21%). The Zacks Consensus Estimate for the average target price is $961.86, with nearly 42% of the analysts giving a Strong Buy or a Buy rating ahead of the company's earnings.2 days ago
Is Disney stock a buy hold or sell?
Walt Disney has received a consensus rating of Buy. The company's average rating score is 2.74, and is based on 17 buy ratings, 6 hold ratings, and no sell ratings.
When will UBER reach 50% electric?
UBER's partnership with TotalEnergies to aid the transition of its drivers to electric mobility is a step toward the former's commitment to reach 50% electric vehicles by 2025 in France.
Where is Didi Global trading?
Shares of Chinese ride-hailing giant Didi Global began trading on the New York Stock Exchange, kicking off what is set to be a busy summer of initial public offerings on the U.S. exchanges.
When will Tesla have 1 million robotaxis?
Tesla CEO Elon Musk had hoped to have 1 million robotaxis on the road by the end of 2020, but good luck trying to flag down a driverless Tesla for a lift any time soon. Analysis-Tesla's plans for batteries, China scrutinized as Musk drops features. Reuters. Elon Musk says he is done with regular earnings calls.
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What happened
Shares of Uber Technologies ( UBER -2.88% ) , Lyft ( LYFT -3.82% ) and DoorDash ( DASH -8.40% ) were all selling off today after Labor Secretary Marty Walsh told Reuters that as he saw it, most gig workers should be employees.
So what
In an interview with Reuters, Walsh said, "We are looking at it, but in a lot of cases gig workers should be classified as employees ... in some cases they are treated respectfully, and in some cases they are not, and I think it has to be consistent across the board."
NYSE: UBER
Walsh said his department plans to have discussions with companies that employ a large number of gig workers, such as Lyft, Uber, and DoorDash, which seems to indicate that an immediate policy change is unlikely.
Now what
Uber and Lyft will both report earnings next week, and DoorDash's first-quarter update is due out the following week. Expect the companies to address the renewed concerns about driver classification, as the Reuters interview reminds investors that this issue won't go away, especially with a Democratic administration now in the White House.
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How much did Lyft revenue increase in the fourth quarter?
Lyft's fourth-quarter numbers were strong: Revenue rose 52% to $1.02 billion, driven by 23% growth in active riders and 23% growth in revenue per active rider. That result was well ahead of analyst estimates at $984 million.
Is Lyft going to grow in 2020?
Looking ahead, the company expects revenue growth to decelerate significantly in 2020, calling for 36%-37% growth in the first quarter and 27%-29% for the full year. Lyft's guidance has historically been conservative, but if it's accurate, investors are looking at a stock that's losing money with rapidly slowing growth and a much larger rival in Uber. Today, that seems like a hard sell for investors.
