$Lyft, Inc.(LYFT)$ bearish Lyft
Lyft is the no. 2 player in the U.S. ridesharing market. It generated $1 billion of revenue in the first quarter of 2023 from about 19.5 million active riders. On that revenue, it posted a net loss of $187.6 million.
The company managed to grow revenue by 14% year over year in the first quarter, but that growth came at a cost. Gross margin was 45%, down from nearly 50% in the prior-year period. Lyft attempted to keep operating costs in check, but total costs still rose nearly as fast as revenue. Scale is not helping.
Lyft's net loss is almost entirely due to stock-based compensation expense. The result of this excessive use of stock-based compensation is that Lyft's share count is expanding rapidly. The company's outstanding share count jumped 8% over the past year, diluting shareholders in the process.
Comments
I'm buying Lyft only because I know how terrible Uber is - over 12,000 Uber rides I've given - Lyft should call me into the home quarters and I can tell him how to make their company much better than Uber
For those who have not seen it, look into OARK. It is an ETF that plays options on ARKK holdings. Hilarious concept! I have a position in it just for the entertainment value. Monthly dividend is paid.
Luckily I got in at $36. In Cathie we trust!
This was a bad stock from start 80 to 0 going down the same as for kast two years no hope for it looks like
Lyft is a cow and management is the milking machine. They get paid no mater what that needs to change
Next stop $15. Last chance for shorts to cover!