To The Moon

$Lyft, Inc.(LYFT)$ has reported first-quarter revenue and profit above expectations, and they have also projected higher-than-expected gross bookings and core profit for the current quarter on Tuesday (07 May 2024). The projection forecast is driven by robust demand for its services and benefits from new user and driver features.

Lyft has been luring consumers with shortened wait times for some pre-scheduled rides and drivers with minimum wage guarantees while trimming costs to boost profitability. We also need to understand that Lyft has performed a cost cutting by reducing hundreds of jobs, losses reduced and managed to keep their fare increases in check.

This is reflected in the costs slashed by 13% and narrowed its net loss by 78% in 2023. In 2023, Lyft stock price actually rose 36%. They are actually benefiting rom the industry-wide trend of a pickup in ride-hailing demand and its strong execution of new functionalities, Risher told Reuters in an interview.

Its closest competitor $Uber(UBER)$ will be reporting its earnings today (08 May) at pre-market, so I would think it is time to take a look at how these stocks stacked up, and why I think Lyft has potential.

Lyft KDJ Need Demand To Show Bullish Reversal Potential

If we looked at how Lyft have been trading, the demand have disappeared just before its earnings, though MACD strength is still there after converge to a crossover.

But Lyft need to show more demand (buying) in order to secure a bullish upside, last night after hours volume (8.13 million) is an indication that this might be possible today.

I will be looking to enter a trade at 17.70 to 17.80.

Uber Would Be Able To Benefit From Lyft Rise

Uber has been gathering quite a good demand (buying) as seen from KDJ, and its MACD is also building strength, I would expect a good earnings from Uber.

This should help to push Uber stock price higher into the $73.

Lyft Trading Just Below 50-day MA period

Lyft has just gone below the 50-day period before its earnings, but with the after-hours Gap up, we should be seeing Lyft coming back above the 50-day period.

There should be some interesting price action for this stock.

Summary

Ride-hailing companies should be in focus as they have been doing some exercise for cost cutting and also to increase their revenues, this earnings season should be time for their report card.

Lyft has shown a good earnings and their current quarter is also expected to be in the good positive side. Uber on the other hand, would also benefit from its cost cutting.

Appreciate if you could share your thoughts in the comment section whether you think Lyft would continue to show strong performance after its earnings.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.