Roast Me: bought $150k worth of Lyft 3 days ago – this is 75% of my money, no more savings
Bought it on the hypothesis:
- Public relies on Lyft and Uber for so many use cases (healthcare, work, public transport, leisure, etc)
- They are the only two successful rideshare companies in US, nobody close
- Lyft was near all-time lows, yet they reported on good numbers, moving towards profitability
- yes regulations make it difficult for Lyft to turn a profit, but when they threaten to pull out of city, politicians balk because rideshare is part of the fabric of the economy (Google Minnesota and Uber)
- it’s an obvious acquisition target if it stays this low for one of the autonomous companies wanting to purely focus on manufacturing and not demand generation
- new CEO is from AMZN, look at their stock
Im up >$20k so far and don’t plan to sell until it reaches $100/share
Thoughts? Counter-arguments? Let’s hear em.
https://i.redd.it/e97wxpla38jd1.jpeg
Posted by notme1234510
14 Comments
Can’t edit post, realize I’m up $17k but not >$20k. But honestly, doesn’t matter to me as diamond hands baby! Who’s with me?
Wait til Tesla FSD makes drivers and Uber/Lyft redundant
I would be careful they have an issue of illegal drivers and app manipulation. (Also quality of vehicle/driver ) This may improve their numbers while it lasts but when regulators step in it could be their downturn.
Uber is more thorough but in big metroplexes local third party providers starting their own app due to price gouging they’ve come to realize when they partnered with Uber / Lyft is a detriment for the passengers and the city flipping the bill..
I remember my 12 interview stretch Lyft. It had all sorts of modeling exams and concluded with a director who spent half an hour talking about how stupid I would have to be to be bearish on the stock. I think that was around $42.
Their [fucking up the margin growth in their 4Q23 press release](https://www.cnbc.com/2024/02/13/lyft-shares-soar-on-earnings-beat-guidance.html) and spiking, then crashing their stock after-hours because apparently someone did not understand how to translate basis points into % was one of the best corporate bloopers of the year so far. Surely that CFO, who is still there, will grow your life savings.
i’m in with you, i’ll get some leaps on monday’s open. best of luck
At least you are not holding melting ice cubes a.k.a options.
Looks good imo
I actually put this on my radar when it hit $10 – seemed entirely too cheap. Good call.
Sell calls for some extra cash
Sir *akschually* that’s 72.36 of your portfolio.
Uber does >10x the income and is actually profitable, lyft is on a spiralling downtrend imo. Also, the vibes reported at each company on blind by their respective employees are far different, where uber is seen far more positively. I’m not confident in the lyft teams talent internally. Best of luck though op.
On second thoughts, the acquisition play is a valid one, but what’s the timeframe on this happening? What’s to stop the stock dropping more before an aquisition?
For what it’s worth, my sense is that hyper-local solutions will continue to pop up and get in the way of the company being able to continually charge fairs that are profitable. When the prices rise, locals are aware of alternatives and use those, which can include returning to mass transit options. Uber and Lyft will always have a place for tourists / people travelling etc.. but retaining local business in cities is the key to a solid foundation, and I’m not convinced they will ever fully get there.
https://www.msn.com/en-us/money/companies/uber-and-lyft-drivers-in-massachusetts-to-earn-32-per-hour-under-new-law/ar-BB1pdVaF