#7 - Lyft (NASDAQ:LYFT)
Lyft (NASDAQ: LYFT) - Lyft is a small ($20 billion), but growing player in the ride-sharing space. Lyft operates exclusively in the United States and Canada where they currently have about 32% market share. The optimism for the stock centers on the long-term outlook for LYFT which is proving to be a formidable competitor for Uber in their shared markets. Over the long term, analysts are projecting Lyft to become an $80 billion giant in the category. Based on its current valuation, that $80 billion number represents quite a nice ROI. However, it has to get there first. And that is proving to be a challenge. After their initial IPO led to what investors felt was an unsustainable valuation (currently they have a price to sales ratio of around 10). Not surprisingly, the stock has plummeted. It is currently down over 20% since its IPO at the end of March. Plus, space is expected to become more crowded in the years to come. One of the axioms of investing is not to try and catch a falling knife, but that is what investors will need to be attempting if they are looking to invest in Lyft.
About Lyft
Lyft, Inc operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. It operates multimodal transportation networks that offer access to various transportation options through the Lyft platform and mobile-based applications. The company's platform provides a ridesharing marketplace, which connects drivers with riders; Express Drive, a car rental program for drivers; and a network of shared bikes and scooters in various cities to address the needs of riders for short trips.
Read More - Current Price
- $17.89
- Consensus Rating
- Hold
- Ratings Breakdown
- 10 Buy Ratings, 28 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $17.55 (1.9% Downside)
The bottom line for investors is simple. Investing comes with risk, particularly if you’re investing in equities. And while it can be tempting during volatile times to pull out of the market, many investors know that you can’t win if you don’t play. And for some of these investors, their biggest risks have turned into their biggest rewards.
One of the keys to successful investing is the willingness to change course. That is particularly true with your riskier investments. If you do decide to invest in any of the stocks above, or other high-risk stocks are sure to do your due diligence and make sure that you have a means of staying on top of news surrounding your stock selections. A great way to do that is through our MarketBeat Daily Premium service. With this service, you have all the information you need to make informed trading decisions, including all the breaking news and analysts’ coverage of your current portfolio and watch list in one location.
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