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Lyft's Earnings Beat Gives Uber Stock a Boost
By: Schaeffer's Investment Research | November 3, 2021
• Lyft shared a top- and bottom-line beat for its third quarter
• Uber is set to report earnings after the close tomorrow
The shares of Lyft Inc (NASDAQ:LYFT) are up 9.1% at $49.46 this afternoon, following the ride share name's third-quarter earnings and revenue beat, which was attributed to a return of drivers and customers, as well as drastic cost cutting. The upbeat quarter is also giving Uber Technologies Inc (NYSE:UBER) a boost, just ahead of its own third-quarter earnings report, which is due out after the close tomorrow, Nov. 4. UBER was last seen up 6.6% at $45.70.
Options traders are ramping up activity on both stocks. Starting with LYFT, 90,000 calls and 50,000 puts have been exchanged so far, which is six times the intraday average. The most most popular is the 11/5 50-strike call, followed by the 53-strike call in the same weekly series, with positions being opened at both.
A look at UBER shows 250,000 calls exchanged so far, which is double the intraday average, and over four times the number of puts exchanged. The December 50 call is being picked up at the quickest clip, while the November 50 call follows closely behind.
Analyst sentiment has fallen on both sides of the aisle following LYFT's quarterly report. No fewer than five firms slashed their price targets, with the lowest coming from Stifel to $58 from $63. Two analysts, however, lifted their price objectives, including Citigroup all the way up to $95. Coming into today, 17 of the 22 analysts in coverage called the stock a "buy" or better. Plus, the 12-month consensus price target of $68.59 is a healthy 38.8% premium to current levels.
Analysts are optimistic towards Uber stock as well, despite its 10.4% year-to-date deficit. Of the 23 in coverage, 20 say "buy" or better, and the 12-month consensus price target of $67.15 is a 47.8% premium to the stock's current perch.
A closer look at Uber stock's last eight earnings reports shows mixed next-day returns. The security settled higher the following day only four times, averaging a 6.7% return, regardless of direction. This time around, the options pits are pricing in a much larger 10.9% post-earnings swing.
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Lyft Stock Leaps Forward, Carrying Uber, as Ride-Sharing Makes Comeback
By: TheStreet | November 3, 2021
• Lyft stock leaps after reporting third-quarter earnings that handily beat analysts’ forecasts, raising expectations that rival Uber also will report strong results.
Lyft (LYFT) stock leapt forward on Wednesday, gaining more than 15% in premarket trading, after the ride-sharing company reported third-quarter earnings that handily beat analysts’ forecasts and said it is seeing a post-pandemic return of passengers and drivers to the roads.
Shares of rival Uber (UBER) also gained as investors recalibrated their expectations for its third-quarter earnings, due out on Thursday.
Lyft stock was up 15.95% at $52.55 in premarket trading after the company reported third-quarter revenue of $864 million, slightly ahead of estimates. It posted per-share earnings of 5 cents vs. analyst estimates of a 3-cent-a-share loss.
"We had a great quarter,” Lyft CEO Logan Green said in a statement accompanying the earnings announcement. “Driver supply materially improved in Q3, up nearly 45% versus last year, reflecting strong new driver trends."
The company said it anticipates improved service and pricing in the fourth quarter. "Given our success onboarding new drivers and expected supply tailwinds, we anticipate our service levels will naturally improve in Q4 and lead to lower prices," CFO Brian Roberts said in the statement.
Ride-sharing rival Uber also saw its shares rise following the earnings release and into premarket trading on Wednesday. At last check, Uber shares were up 6.09% at $45.50 in premarket trading.
Uber is expected to post its latest financial results on Thursday. Analysts surveyed by FactSet expect the company to report a loss of 33 cents a share on sales of $4.42 billion.
Ride-sharing companies suffered badly during the peak of the COVID-19 shutdowns, as travel fell sharply, and drivers chose to stay home to avoid exposure. Uber saw some benefit from its food delivery operations that cushioned part of the blow.
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Lyft says drivers are coming back, but disappoints on active riders
By: CNBC | November 2, 2021
Lyft reported third-quarter earnings on Tuesday after the bell. Shares rose around 4% after it beat on revenue and said drivers are coming back, though it missed active riders estimates.
Here are the key numbers:
• Earnings per share: 5 cents adjusted vs loss of 3 cents per share expected in a Refinitiv survey of analysts
• Revenue: $864.4 million vs $862.7 million expected by Refinitiv
• Active riders: 18.9 million vs 19.7 million expected, per StreetAccount
• Revenue per active rider: $45.63 vs $43.89 expected, according to StreetAccount
Lyft reported a net loss for the quarter of $71.5 million versus a net loss of $459.5 million in the same period of 2020. The company said its net loss includes $203.3 million of stock-based compensation and related payroll tax expenses.
Lyft again posted an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) profit of $67.3 million. It’s a large jump compared to the prior quarter when Lyft posted its first quarterly adjusted EBITDA profit of $23.8 million. The company said in August it expected to maintain that milestone, which it met a quarter earlier than expected and before competitor Uber.
Lyft’s revenue grew 13% quarter-over-quarter to $864.4 million. That’s up 73% year-over-year thanks to easy comparables due to the Covid-19 pandemic. It also recorded record revenue per active rider at $45.63, which is up 14% year-over-year.
The company missed Wall Street expectations on active riders. Lyft reported 18.94 million active riders this quarter, compared to the expected 19.69 million, per StreetAccount.
The company has struggled with driver supply and demand imbalances throughout the pandemic, leading to higher costs or long wait times. Investors have been attuned to the imbalance, especially as the company has invested millions in incentives to bring drivers back to the platform.
Lyft CEO Logan Green said driver supply materially improved in the third quarter, up nearly 45% year-over-year.
“Given our success onboarding new drivers and expected supply tailwinds, we anticipate our service levels will naturally improve in Q4 and lead to lower prices,” CFO Brian Roberts said in a release.
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Q3 2021 EPS Estimates for Lyft, Inc. Lowered by Piper Sandler (NASDAQ:LYFT)
By: MarketBeat | October 20, 2021
Lyft, Inc. (NASDAQ:LYFT) - Piper Sandler dropped their Q3 2021 earnings per share estimates for Lyft in a research report issued to clients and investors on Sunday, October 17th. Piper Sandler analyst A. Potter now anticipates that the ride-sharing company will post earnings of ($0.71) per share for the quarter, down from their previous estimate of ($0.42). Piper Sandler has a "Overweight" rating and a $84.00 price objective on the stock. Piper Sandler also issued estimates for Lyft's Q4 2021 earnings at ($0.35) EPS, FY2021 earnings at ($2.27) EPS, Q1 2022 earnings at ($0.26) EPS, Q2 2022 earnings at ($0.13) EPS, Q4 2022 earnings at ($0.02) EPS, FY2022 earnings at ($0.48) EPS and FY2023 earnings at $0.36 EPS. Lyft (NASDAQ:LYFT) last issued its quarterly earnings results on Tuesday, August 3rd. The ride-sharing company reported ($0.68) earnings per share (EPS) for the quarter, topping the Zacks' consensus estimate of ($0.70) by $0.02. Lyft had a negative return on equity of 79.27% and a negative net margin of 65.35%. The firm had revenue of $765.03 million during the quarter, compared to analyst estimates of $701.24 million...
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Lyft built a brand on being the nice gig work app clad in pink
By: Washington Post | September 21, 2021
• SAN FRANCISCO - Ray Givaudan has driven for Lyft, Uber and even briefly Instacart to supplement his retirement over the last few years.
At first, the 55-year-old was loyal to Lyft. But then Uber introduced a long pickup fee to pay more if he goes out of his way to pick up a passenger. In addition, he could see what a customer paid for a trip, helping him understand if he was getting a fair share. Instacart provided more opportunities for work during the pandemic.
"The first couple of years with Lyft, you seemed to be a decent company and transparent," the Roanoke-based driver recently wrote in a letter to Lyft co-founders Logan Green and John Zimmer. "The last couple of years, not so much." He cited the disappearance of surge-priced pay, lagging driver rewards and the removal of helpful features such as a live phone help line for drivers.
Lyft has spent years trying to win over drivers and passengers with fun branding, an emphasis on social justice and charitable causes, and in-app tipping. The perks gave it a reputational edge in a marketplace where rival Uber was criticized for its treatment of drivers and corporate scandals, and where food and grocery delivery was a budding and uncertain sector of the gig economy, often with lower pay.
But the pandemic and related labor shortage has dramatically shifted that landscape over the past couple years. At Lyft, which remained focused on ride hailing, ridership was down by as much as 75 percent last year.
Drivers aren't bound to one company, and can easily switch between apps. In the interim, many drivers chose to work for rival food delivery services, which experienced a boom in deliveries and offered additional transparency into earnings, along with advantages like negating the risk of interacting with passengers. Companies like DoorDash and Shipt added driver incentives, such as cash bonuses last winter in an effort to meet surging demand.
And while Uber experienced similar ridership declines to Lyft at the height of the pandemic, it doubled down with its Eats food delivery business.
Now demand for rides is returning, fueling a driver shortage. And as other companies have offered steadier work and more transparency, some drivers say they are frustrated with Lyft.
Lyft has fallen behind the gig work market in several areas, more than a half-dozen drivers, analysts and researchers say. Lyft's take-home pay also tends to be lower than its biggest rival, Uber, owing to a combination of stiff competition and algorithms less sensitive to surges in demand.
"I think Lyft is floundering," Givaudan said.
Lyft spokeswoman Julie Wood said the company places a priority on the driver experience. She said quoted wait times for riders on Lyft were lower than on Uber in 24 of the 30 largest markets over a recent period, according to company data points and visualizations that were shared with The Washington Post. That meant there was little indication drivers were choosing Uber over Lyft. And drivers in some cities were earning more than $35 an hour, well beyond what they would typically collect, the company said recently.
"We continue to invest in making the Lyft experience a great one for drivers," Wood said in a statement. "We know we're making progress because of the increased number of drivers on the platform, and the fact that they're earning more than ever before."
But the lack of transparency can lead some drivers to feel they're not receiving a fair share. One driver shared screenshots with The Post showing a passenger paid more than $43 for a trip from Northwest Washington to Reagan National Airport, but he took home just over $16. The driver, a music instructor who spoke on the condition of anonymity because he did not want his students to know he was driving for Lyft, had to ask the passenger to see how much they paid for the ride.
Wood said many of the features mentioned in this story are available on the Lyft app, either through pilot programs or unlockable driver rewards. Lyft has a long pickup bonus in six markets, for example. And drivers can earn the ability to see passenger destinations through their driver rewards, she said. Lyft is also experimenting with upfront pay in two markets, allowing drivers to see the earnings and trip details on the screen before accepting a ride.
Uber spokesman Matthew Wing acknowledged the company has had to make improvements in the face of outside pressure and calls for change.
"Being the market leader comes with more scrutiny, as it should," Wing said. "Drivers have a lot of choices and actions, not branding, are what you need to earn their trust."
Instacart spokeswoman Natalia Montalvo said the firm met a March 2020 goal to add 300,000 shoppers, and there are stable numbers of shoppers across North America.
DoorDash declined to comment. Amazon and Shipt did not immediately return requests for comment. (Amazon founder Jeff Bezos owns The Washington Post.)
Drivers say they've watched a shift at Lyft from its beginnings, when it was the first ride-hailing app to implement a default tipping feature and has allowed customers to tip since its debut nearly a decade ago. Lyft also was first to let drivers pocket their earnings right away through a feature called "Express Pay," with instant deposits for a transfer fee, it said.
In California, estimated to be the largest U.S. market for gig work with more than 1 million workers, a 2019 law that mandated companies treat gig workers as employees helped drive some changes in driver treatment. Some companies - particularly Uber - added a number of perks for drivers, including more control over fares and transparency into earnings even before a driver took on a ride. The initiatives tried to prove drivers were independent.
Lyft didn't adopt new features, as it pursued a different legal strategy. Analysts said that company likely benefited from the fact that Uber drivers were turning down trips, and the changes Uber made to its app were costly from a research, development and operational standpoint.
A judge last month ruled that a ballot proposition called Prop 22 that usurped that law's requirement for gig workers was unconstitutional. Although it faces a promised appeal, the ruling has once again put drivers' issues in the spotlight - particularly as gig work companies try to replicate Prop 22 with new legislation across the country.
Still, some of Uber's changes were short lived. It uncoupled driver earnings from passenger fares earlier this year as it no longer needed to prove drivers were independent operators in a supply-and-demand-based marketplace, sparking outrage among some drivers.
That led to cases where passengers found themselves paying astronomical fares while drivers collected meager bonuses. Meanwhile, some riders trying to take a Lyft were shown reasonable prices, but there weren't drivers to accept the fares.
Ride-hailing apps are highly dependent on their matching algorithms to pair customers with nearby drivers for a reasonable fare, at a rate that ensures gig workers are willing to make the trip.
Lyft's algorithm is less sensitive, analysts said, meaning prices don't spike as easily and driver bonuses can be lower and less frequent. Wood pointed to the wait time data as evidence that there is an ample supply of drivers, however.
But the differing algorithms can lead to headaches. For example, when customers pouring from an event are all demanding rides at once, they might find the price of an Uber has spiked while Lyft is comparably cheaper. In that case, Uber's algorithm has detected a surge in demand and raises the price accordingly so customers can secure a ride with the limited supply of drivers.
Changing an algorithm in an app can cost tens or millions of dollars, said Brad Erickson, an equity analyst with RBC Capital Markets. "That is not a trivial change, product-wise," he added.
While gig companies are known for luring drivers with high earnings potential and slowly whittling it away, there has been something of a mini perk war among those duking it out for drivers.
DoorDash provides all drivers a guaranteed rate of pay upfront, and visibility into how far drivers' trips will take them, critical insights for drivers determining whether deliveries are worth their while. Instacart, meanwhile, began letting drivers connect with a company agent by phone in under two minutes, chat directly within the app or schedule a call with an agent.
Delivery service Shipt offered surprise "recognition" bonuses for shoppers following the busy holiday season, awarding between $50 and $500 to workers who took on a range of order amounts.
At the ride-hailing companies, bonuses constitute a large chunk of driver earnings, as Uber drivers pursue "Quest" goals that pay out hundreds of dollars for hitting certain milestones, such as 60 or 70 trips over a weekend. Lyft drivers operate under a similar system, though experienced drivers who spoke with The Post said the bonuses are fewer and farther between for all but the newest contractors.
"Lyft historically is known to have less drastic surge pricing and price fluctuation," said Ippei Takahashi, founder of RideGuru, a website that provides fare comparisons for the ride-hailing apps. "Many historical [studies] have stated that Lyft takes a larger portion of each ride - at least in aggregate," he added.
It's a phenomenon gig driver Timothy Bullock experienced directly during an East Coast snowstorm in February. Bullock shared screenshots of the surge map - a map of all bonuses available to drivers - for both apps taken one minute apart.
"Uber was offering surge rewards to drivers in excess of $40 a ride, yet Lyft was offering nothing," Bullock said. "The result was that there were no available drivers, even though a standard Lyft ride was significantly cheaper."
Lower customer fares and longer wait times are possible amid the driver shortage, but they follow a pattern that typically benefits drivers, said Lyft spokeswoman Wood.
"When rider prices are lower, that generally helps to stimulate rider demand. More rider demand means more rides for drivers," she said. "Drivers understand that the busier they are, the more they make."
Lyft continues to promote its brand of social appeal, extending it to drivers. Just this month, Lyft announced it would cover drivers' legal costs under Texas's restrictive abortion law, which bans abortions as early as six weeks and lets anyone file a lawsuit against another person who has helped someone obtain an abortion.
Ben Valdez, a Los Angeles-based volunteer organizer with the group Rideshare Drivers United who drives for both companies, said a friend recently called him to ask for a ride because he had been waiting more than an hour on the ride-hailing apps. He'd been promised a $60 Lyft, after finding the comparable Uber ride would have cost $100.
"Uber was surging during bar rush; they wanted $100 for a 15-mile ride," Valdez said. The friend instead embarked on an extended wait for a Lyft.
With Lyft, Valdez said, "It's literally, 'You get what you pay for.' "
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Uber Drivers Are Employees, Not Contractors, Dutch Court Says
By: TheStreet | September 13, 2021
• Uber's 4,000 drivers in Amsterdam deserve the benefits that coincide with taxi sector employees, a Dutch court said Monday.
Shares of Uber Technologies (UBER) were rising Monday morning after a Dutch court ruled that the company's drivers are employees and not contractors.
The ruling means that Uber drivers are entitled to greater workers' rights under local labor laws, which could be a setback for the U.S. company's operations in Europe.
An Amsterdam district court ruled in favor of the Federation of Dutch Trade Unions, which argued that Uber's nearly 4,000 drivers in the Dutch capital should be granted benefits in line with taxi sector employees, Reuters reported.
Uber said it will appeal the decision and that it "has no plans to employ drivers in the Netherlands."
"We are disappointed with this decision because we know that the overwhelming majority of drivers wish to remain independent," said Maurits Schönfeld, Uber's general manager for northern Europe, said in a statement. "Drivers don’t want to give up their freedom to choose if, when and where to work."
The business model for Uber, and other ride hailing services like Lyft, has been challenged in court's across the world.
Last month, a California court invalidated a gig worker ballot initiative that had been championed by Uber and Lyft.
Alameda County Superior Court Judge Frank Roesch said late Friday that the 2020 decision known as Proposition 22-- which received 58% voter support -- was unconstitutional as it "limits the power of a future legislature to define app-based drivers as workers subject to workers' compensation law."
Uber shares Monday rose 2.6% to $40.95 at last check.
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Lyft and Uber will cover legal fees of drivers sued under Texas abortion law
By: Engadget | September 3, 2021
• Lyft is also donating $1 million to Planned Parenthood.
Lyft will cover the legal fees of drivers sued under the state of Texas’ recently enacted SB8 abortion law, the company announced on Friday. The law prohibits women from terminating a pregnancy after six weeks. That’s a time frame before most even know they’re pregnant. Critically, SB8 also allows private citizens to sue anyone who assists a pregnant woman trying to skirt the ban, including rideshare drivers who face the prospect of $10,000 fines.
“This law is incompatible with people’s basic rights to privacy, our community guidelines, the spirit of rideshare and our values as a company,” Lyft said in a blog post. In response to SB8, the company is establishing a legal defense fund it says will cover 100 percent of the legal fees incurred by its drivers. It’s also donating $1 million to Planned Parenthood.
“This is an attack on women’s access to healthcare and on their right to choose,” Lyft CEO and co-founder Logan Green said on Twitter in which he also called other companies to offer the same support. Uber CEO Dara Khosrowshahi responded some 30 minutes later, announcing Uber would follow suit. “Team Uber is in too and will cover legal fees in the same way,” Khosrowshahi said. “Thanks for the push.” The move comes after the US Supreme Court formally denied a request earlier in the week from abortion clinics in the state to freeze the law.
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Companies-backed Massachusetts gig worker ballot measure clears key hurdle
By: Reuters | September 1, 2021
BOSTON (Reuters) - Massachusetts' attorney general on Wednesday gave backers of a proposed ballot measure that would define drivers for app-based companies like Uber Technologies (NYSE:UBER) Inc and Lyft Inc (NASDAQ:LYFT) as independent contractors rather than employees the green light to collect the signatures needed to put it before voters.
Massachusetts Attorney General Maura Healey certified the measure met constitutional requirements, clearing the way for a coalition of app-based service providers backing the initiative to begin collecting the 80,239 signatures needed to get the proposal onto the November 2022 ballot.
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Lyft Stock: No Lift Back to Past Prices
By: Tip Ranks | August 29, 2021
Investors may be shrugging off recent regulatory headwinds when it comes to Lyft (NASDAQ:LYFT) stock. Shares in the rideshare app operator initially dipped on news of an August 20 California state court decision that could mean an end to gig workers being classified as independent contractors in that U.S. state.
Yet, as more investors and analysts became bullish that the company, and its rivals such as Uber (NYSE:UBER) seemed poised to win on appeal, shares began bounce back. The stock went from under $45 per share, to briefly back above $50 per share, before closing out the week ending August 27 at around $48.39 per share.
This market reaction makes sense, as the rideshare industry has so far been successful combating the backlash over its labor practices. Investors might be correct at believing regulatory risks are overblown. On the other hand, various factors at play could result in Lyft making more moves lower in the months ahead.
Between the U.S. labor crunch, its profitability challenges, and a rich valuation, there’s still more in play to send it lower than to send it higher from here. This author is bearish on the stock. (See Lyft Stock Analysis on TipRanks)
LYFT Stock and The Overturning of Proposition 22
The U.S. federal government has yet to put in place changes to how gig workers are classified. Instead, in recent years, the battle’s been playing out on the state level. U.S. states like California have attempted to change labor practices believed by critics to be unfair.
Back in 2019, California passed a bill known as AB5. This bill would have made it so that gig worker platforms would be required to classify workers as employees rather than as independent contractors.
A change in classification means higher labor costs. As employees rather than an contractors, gig platforms would have to adhere to employment law, and pay unemployment insurance taxes. Yet, well-connected and well-financed, the gig platform industry fought back and won. Its financial backing of Proposition 22 helped the proposition to be passed by voters in November 2020.
Prop 22 exempted app-based transportation and delivery companies, such as DoorDash (DASH), from the provisions of AB5. Yet last week's court decision, mentioned above, overturned this exemption. Chances are, though, that nothing much is set to change, in practice. Why? The gig platform industry still has options to fight back.
Three Other Issues Still Weighing Down on Shares
Likely to appeal the decision, major gig platform operators may not be immediately under threat by this recent court decision. Yet that doesn’t guarantee LYFT stock will continue to trend higher. Three factors that have pushed it down from its 52-week high, of $68.28 per share, to today’s prices, could remain in effect.
First, the U.S. labor shortage. The COVID-19 “reopening” has helped to bring back demand for its platform. However, said reopening has also reduced the supply of drivers. Many former and would-be drivers have found better gigs/jobs elsewhere. As a result, the company had to pay up in the form of driver incentives. Wedbush analyst Daniel Ives has recently said that this will affect the company's near-term results.
Second, Lyft's continued issues with becoming profitable. Analysts project the company will finally get out of the red in 2022. Yet if challenges like the labor shortage remain an issue going into next year, it may be unable to hit these projections.
Third, valuation. “Taper talk” notwithstanding, the Federal Reserve’s aggressive monetary policy remains in place. This has helped to sustain the rich valuations of fast-growing tech names like this one. All the same, if we see these policies change from dovish to hawkish sooner than anticipated, LYFT stock could see further multiple compression.
What Analysts are Saying About LYFT Stock
According to TipRanks, LYFT stock has a consensus rating of Moderate Buy. Out of 22 analyst ratings, 14 rate it a Buy, 8 analysts rate it a Hold, and 0 analysts rate it a Sell.
As for price targets, the average Lyft price target is $74.74 per share, implying around 54.45% in upside from today’s prices. Analyst price targets range from a low of $59 per share, to a high of $88 per share.
Don’t Expect Lyft to Get a Lift Back to Prior Highs
The recent California court decision may not be the end of the world for Lyft. The gig app industry appears well-positioned to fight off the push to have its workers reclassified.
That alone likely won’t translate into LYFT stock getting a lift back to its 52-week high. Instead, the three other factors mentioned above will likely apply more downward pressure.
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3 Reasons to Ride Lyft Stock
By: MarketBeat | August 27, 2021
• After two and a half years as a public company, Lyft (NASDAQ: LYFT) has still yet to deliver any profits for early shareholders. Its stock is trading more than 40% below its IPO level—and this is good news for long-term growth investors.
With economic activity starting to pick up, the San Francisco-based ridesharing company may be finally hitting its stride. And while Lyft is still not profitable, improvements in its cost structure and the launch of complimentary services point to a strong 2022 and beyond.
When Will Lyft Be Profitable?
In 2020, the Covid-19 pandemic wreaked havoc on the ride-hailing industry as it did to many others. With restaurants, bars, and entertainment venues closed, demand was minimal. Although Lyft performed better than analysts feared, it still lost a whopping $2.66 per share.
Lyft’s bottom-line performance in the first quarter of this year was actually worse than in 2020 amid increased spending but still tepid demand. Things looked significantly better in the second quarter. The company posted a narrower than expected loss of $0.05 as it was able to rein in costs and benefit from higher rider volumes.
Last quarter’s result was significant because it marked the first time Lyft reached EBITDA profitability—and because it did so six months ahead of schedule. The first period of positive EPS could come as early as the current quarter. We’ll learn in early November if Lyft is able to beat the consensus forecast of a $0.03 per share loss and turn its first real profit.
The first full year of profitability is expected to be 2022. Analysts are forecasting Lyft will swing to a profit of $0.69 per share. Of course, much will depend on how things develop on the pandemic front. But as things are shaping up, Lyft should finally be profitable in its 15th year in business.
People are getting more comfortable with contactless everything these days. That goes for Lyft’s cash-free ride-hailing service which is now available in more than 600 U.S. cities and in Canada. There’s no doubt the Lyft app is resonating with customers and especially Millennials. It just needs a healthy economic environment and the riders that come with it. As restrictions on dining and leisure activities continue to be lifted, the company’s core business is positioned to thrive.
Beyond car ridesharing, Lyft also operates a fleet of bikes and scooters designed for short-distance travel in urban settings. It is this expansion into other transportation modes that will also be a key growth contributor over the next three to five years.
It is likely that both Uber and Lyft can find success in the post-pandemic world as people embrace the perceived safety and cleanliness of ride-hailing services over taxis. A key difference between the two though, is that Uber has entered the food delivery business whereas Lyft has not.
Lyft does, however, have a partnership with Grubhub whereby Lyft Pink members get access to the Grubhub+ service go along with the program’s other perks such as 15% off rides. Still, less than a year old, Lyft’s Grubhub+ connection versus Uber Eats will be a key battleground to watch.
Another disruptive force in consumer transportation is self-driving vehicles. Lyft sold its Level 5 autonomous driving division earlier this year but is staying in the game. Instead of developing the technology on its own, it plans to form partnerships with self-driving technology groups to have exposure to this potentially huge long-run growth driver.
Lyft is getting ready for the future of transportation by further investing in the transportation-as-a-service, or TaaS model. Management is making a big bet that over time consumers will shift from the hassle and expense of vehicle ownership to more service-based transportation modes. If it’s right, it could gain access to a larger chunk of the industry as people rely further on ride sharing.
Is Lyft Stock a Buy?
In terms of the technical indicators, Lyft looks to be on the upswing. After dipping below the lower Bollinger band earlier this month, the stock has broken back into the band’s mid-section in decent volume. If it can maintain support at the $49 level, a near-term run to $56 to $57 looks plausible.
Looking beyond the near-term, there’s reason to believe Lyft can return to its days as an $80-plus stock. There is not an analyst on the Street that currently calls Lyft a ‘sell’ which suggests the downside is limited. Since the company reported second-quarter results, twelve sell-side firms have issued ‘buy’ ratings with price targets ranging from $65 to $88. Even the most cautious post-earnings stance (Nomura’s ‘hold’ rating and $59 target) still represents 21% upside from present levels.
As far as valuation, Lyft isn’t cheap at more than 70x fiscal 2022 earnings. Nor are shares of Uber which is not expected to be profitable for some time. But buying Lyft here still makes sense if you are a long-term growth investor because the industry is still in the early stages of a multiyear growth trajectory.
More than just a ride-hailing business, Lyft will have multiple growth levers at its disposal as transportation becomes more tech-forward. Look for more investors to hop on board as the company rings up profits in the quarters ahead.
SHOULD YOU INVEST $1,000 IN LYFT RIGHT NOW?
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Did Lyft and Uber Stocks Just Bottom on Bad News?
By: TheStreet | August 23, 2021
• Uber and Lyft are both rallying on bad news. That has investors wondering whether these two stocks have bottomed.
Lyft (LYFT) and Uber (UBER) were in the headlines over the weekend, which set the stocks up for an early selloff on Monday.
At the lows, Lyft and Uber were down about 4% and 3%, respectively. In premarket trading, the losses were a bit larger.
The dip came after a “judge in California invalidated a 2020 ballot initiative that allowed the ride-sharing groups to classify workers as independent contractors.”
However, both stocks were in positive territory by midday Monday.
Both companies reported earnings in early August and the stocks tried to shake off the selling pressure. However, that endeavor has been unsuccessful thus far.
With Monday's rally off the lows, it’s got investors wondering if the bottom is in.
Trading Lyft Stock
Daily chart of Lyft stock.
Chart courtesy of TrendSpider.com
Lyft has been trending lower since topping out in March.
After reporting earnings earlier this month, shares broke below the 200-day moving average. While this mark was quickly reclaimed, the stock wasn’t able to hold up over it.
Last week, the stock broke its post-earnings low, while Monday’s early action had it dangerously close to the 21-month moving average and the 2021 low at $42.94.
On a rebound, bulls need to see Lyft reclaim the 10-day moving average and $50. Above the latter will put the stock back above the post-earnings low and last week’s resistance.
Below Monday’s low leaves the 2021 low in play. Below $40 and bears may look to flush this one lower.
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Lyft (LYFT) PT Raised to $88.00 at Citigroup
By: MarketBeat | August 4, 2021
Lyft (NASDAQ:LYFT) had its target price lifted by investment analysts at Citigroup from $80.00 to $88.00 in a research report issued to clients and investors on Thursday, The Fly reports. The brokerage presently has a "buy" rating on the ride-sharing company's stock. Citigroup's target price suggests a potential upside of 77.67% from the company's previous close...
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$LYFT Driver shortages.. costs going up.. under key 60 area and now fighting to hold the 200D...
By: Options Mike | August 8, 2021
• $LYFT Driver shortages.. costs going up.. under key 60 area and now fighting to hold the 200D...
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Lyft posts adjusted profit three months ahead of target as rides rebound
By: Tina Bellon and Akanksha Rana | August 3, 2021
(Reuters) -Lyft Inc on Tuesday posted an adjusted quarterly profit three months ahead of target, as it kept costs down while rides rebounded.
The company made an adjusted profit before interest, taxes, depreciation and amortization for the first time in its nine-year history. For the three months ending in June it posted adjusted earnings of $23.8 million. The adjustments exclude one-time costs, primarily stock-based compensation, which drove a $252 million net loss.
Shares rose 4% in after-hours trading following the announcement. Shares of Uber Technologies (NYSE:UBER) Inc rose more 1%, as the Lyft (NASDAQ:LYFT) results raised expectations for its larger rival, which releases its own quarterly report on Wednesday.
"Our business model has never been more healthy," Lyft President John Zimmer said in an interview with Reuters, citing greater profitability from technology and efficiency improvements the company has made over the last couple of years.
Zimmer said the company would be able to keep costs down even when ridership returns to pre-pandemic levels.
"We expect to remain profitable on an adjusted basis going forward and are hopeful that the country will continue to come back," Zimmer added.
Lyft on Tuesday said its platform had continued to grow in July despite increasing concerns over the more contagious Delta variant of the coronavirus spreading throughout the United States.
Analysts had expected an adjusted EBITDA loss of nearly $50 million, according to Refinitiv data. Lyft originally had said it would achieve the profitability goal by the end of this year, then moved the target ahead to the third quarter.
The earlier-than-expected profitability announcement came as ridership grew by more than 3.6 million from the first three months of the year to more than 17 million riders during the second quarter - a time when U.S. cities lifted pandemic-related restrictions and more Americans returned to the road.
Second-quarter revenue came in at $765 million, above analyst estimates for $697 million.
Lyft was able to take advantage of its leaner cost structure thanks to drastic cost cuts over the last year. The company slashed around $2.5 billion from its expenses in 2020, including through widespread layoffs.
On a yearly basis, Lyft has nearly halved total cost as a share of revenue in the second quarter. Costs as a percentage of revenue were also down significantly compared with the second quarter in 2019.
Lyft and Uber have struggled to ramp up driver supply as consumers return to their platforms, providing large incentives and payment guarantees in an effort to attract drivers.
Zimmer said the company had welcomed 50% more new drivers in the second quarter compared with the first and said driver earnings remain at elevated levels across the country.
Lyft previously said it expects more drivers to return in the third quarter, when enhanced U.S. unemployment pay is phased out in all states.
But driver earnings could remain higher long-term compared with pre-pandemic times, Zimmer said, with more efficient routing software reducing the overall number of drivers and the miles drivers spend cruising around without a passenger in the backseat.
"The idea is that we can be more efficient, we can do more with less, we can help drivers earn more," Zimmer said.
Lyft in July also resumed its shared rides offer, suspended at the start of the pandemic. It allows multiple passengers to split a car traveling in the same direction, but Lyft currently limits shared rides to two passengers, with the middle and front seats remaining empty.
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Earnings Previews: Lyft,...
By: 24/7 Wall St. | August 2, 2021
Lyft
Ride-hailing provider Lyft Inc. (NASDAQ: LYFT) has posted a share price gain of about 96% over the past 12 months. So far in 2021, the stock is up nearly 17%. The company, and main rival Uber, are seeing rising demand from riders, but are having difficulty filling the demand for drivers.
Surging coronavirus infections may have sliced into second-quarter results, but it will be what the company sees going forward that could determine how well quarterly results are received. Lyft has said that it will be profitable by the third quarter. Guidance must endorse that promise. And lack of guidance will be interpreted as backing away from that promised profitability.
Sentiment on the company tends to be bullish, with 23 of 38 analysts putting Buy or Strong Buy ratings on the stock. Another 13 rate the shares at Hold. At a price of around $57.70, the stock’s implied upside based on a median price target of $72 is about 25%. At the high target of $86, upside potential on the stock is 49%.
Second-quarter revenue is expected to reach $699.3 million, which would be up nearly 15% sequentially and 106% year over year. Lyft is expected to post a per-share loss of $0.25 in the quarter, 10 cents better than the first-quarter loss and $0.61 better than the year-ago loss. For the full year, analysts are forecasting a per-share loss of $0.66 (including a fourth-quarter profit of four cents) and revenue of $3.14 billion, or a third higher year over year.
Lyft stock trades at 100.4 times estimated 2022 earnings and 34.2 times estimated 2023 earnings. The stock’s 52-week range is $21.34 to $68.28. The company does not pay a dividend...
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Lyft (LYFT) May Report Negative Earnings: Know the Trend Ahead of Next Week's Release
By: Zacks Equity Research | July 27, 2021
Wall Street expects a year-over-year increase in earnings on higher revenues when Lyft (LYFT) reports results for the quarter ended June 2021. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 3. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This ride-hailing company is expected to post quarterly loss of $0.23 per share in its upcoming report, which represents a year-over-year change of +73.3%.
Revenues are expected to be $701.24 million, up 106.6% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Lyft?
For Lyft, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Lyft will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Lyft would post a loss of $0.54 per share when it actually produced a loss of $0.36, delivering a surprise of +33.33%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Lyft doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
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$LYFT 60 remains a battle then this downtrend... tough action..
By: Options Mike | July 11, 2021
• $LYFT 60 remains a battle then this downtrend... tough action..
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Lyft, Inc. (NASDAQ:LYFT) Receives Consensus Rating of "Buy" from Analysts
By: MarketBeat | July 5, 2021
Shares of Lyft, Inc. (NASDAQ:LYFT) have been assigned a consensus recommendation of "Buy" from the thirty-five ratings firms that are covering the company, Marketbeat Ratings reports. Eight research analysts have rated the stock with a hold rating and twenty have issued a buy rating on the company. The average twelve-month price target among brokers that have updated their coverage on the stock in the last year is $69.68...
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$LYFT back over 60 is good, I'm worried about $LYFT and $UBER not sure their business model is sustainable..
By: Options Mike | June 26, 2021
• $MSFT ATH's and bit of a pull back now.. watch the 8D if strong it will hold and bounce there..
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Lyft says wait times decrease as U.S. drivers mark gradual return
By: Tina Bellon | June 16, 2021
(Reuters) - Lyft Inc (NASDAQ:LYFT) said on Wednesday the number of drivers on its U.S. ride-hail platform was gradually increasing, resulting in reduced wait times for customers and a modest decrease in surcharge pricing as travel rebounds from pandemic lows.
Lyft said active drivers on its platform had increased 10% since the beginning of May, adding that thousands of new drivers were activated over just the past two weeks.
In data provided to Reuters exclusively, the company said passenger wait times across the United States were down around 15% on average compared with one month ago. Wait times in some major markets, including Austin, Texas; Miami and Philadelphia, were 25% to 30% shorter and down as much as 35% in Las Vegas.
Serving the rebound in travel demand is crucial for Lyft, which has promised investors it will be profitable on an adjusted basis by the end of the third quarter in September. Longer wait times mean a loss of potential customers and lower revenue.
Lyft declined to provide absolute figures for driver numbers and wait times. The company also warned that wait times and prices may continue to fluctuate as the rebound from the pandemic continues.
Lyft and its larger rival Uber Technologies (NYSE:UBER) Inc have been scrambling in recent months to bring back drivers to their platforms to serve a sudden uptick in rider demand as more Americans are vaccinated against COVID-19 and resume pre-pandemic travel.
Uber and Lyft are trying to lure drivers back with additional incentives and the promise of temporarily higher earnings.
The undersupply of drivers has led to a sharp increase in prices and long wait times in many U.S. cities, causing many ride-hail customers to vent their frustrations online.
Lyft said on Wednesday that surcharge fares during peak demand - a measure the company calls Prime Time pricing - had declined 15% during the last week of May compared with the last week of March.
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Lyft launches EV rental pilot program for ride-hail drivers in Northern California
By: Tina Bellon | June 15, 2021
(Reuters) - Lyft Inc (NASDAQ:LYFT) said on Tuesday it will launch an electric vehicle rental pilot program for ride-hail drivers in a part of the San Francisco Bay Area in partnership with a local utility.
The EV rental program in San Mateo County south of San Francisco is scheduled to begin this fall. It initially aims to provide roughly 100 EVs for use on the Lyft platform, the ride-hail company and Peninsula Clean Energy said in a statement.
Peninsula Clean Energy, San Mateo County's official energy provider which aims to provide 100% renewable energy by 2025, will provide $500,000 in incentives to ride-hail drivers to ensure the cost of renting an EV is comparable to a gas-powered car.
Lyft said exact rental prices and models were still being determined.
The program is operated by Lyft's Flexdrive unit, which works with local car dealerships to rent out vehicles on a weekly or long-term basis.
Lyft already offers EV rentals in Seattle, Atlanta and Denver, where drivers are able to rent Kia Niro and Chevy Bolt EVs.
Peninsula Clean Energy CEO Jan Pepper in a statement said the San Mateo program might eventually lead to more drivers switching to EVs.
Utilities across the United States are embracing EV sales growth as both a promising new source of revenue and an opportunity to use excess wind and solar power generated when supply exceeds demand.
Lyft and its larger rival Uber Technologies (NYSE:UBER) Inc have promised to convert their U.S. fleets entirely to EVs by 2030. In 2018, less than 1% of all ride-hail miles in California were electric, according to company data provided to the California Air Resources Board.
California regulators last month adopted rules to mandate that nearly all trips on Uber and Lyft's ride-hailing platforms must be in electric vehicles within the next few years.
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Lyft, Inc. (LYFT) Given Consensus Recommendation of "Buy" by Brokerages
By: MarketBeat | June 10, 2021
• Lyft, Inc. (NASDAQ:LYFT) has been given an average recommendation of "Buy" by the thirty-five brokerages that are currently covering the company, MarketBeat reports. Eight analysts have rated the stock with a hold recommendation and twenty have issued a buy recommendation on the company. The average 1 year price objective among brokerages that have updated their coverage on the stock in the last year is $69.03...
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Insider Selling: Lyft, Inc. (LYFT) CEO Sells 36,000 Shares of Stock
By: MarketBeat | June 4, 2021
Lyft, Inc. (NASDAQ:LYFT) CEO Logan Green sold 36,000 shares of the company's stock in a transaction on Tuesday, June 1st. The shares were sold at an average price of $58.19, for a total transaction of $2,094,840.00. The transaction was disclosed in a document filed with the SEC, which is available at this link.
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Lyft's first in-house ebike reflects light like a street sign
By: Engadget | June 2, 2021
• Bay Area residents will get to ride it first.
Since 2018 when it bought CitiBike parent company Motivate, Lyft has operated bike-share networks throughout the US. And while its fleet has included both traditional bicycles and those with electric pedal-assist drivetrains, it's now introducing an ebike of its own design.
In development for the better part of three years, the EV features a single gear drivetrain and a more powerful 500-watt electric motor. That should make the bike easy to operate and maintain since there's no front or rear derailleur. Complementing those parts is a battery Lyft claims can go up to 60 miles on a single charge. Lyft built the power cell and the cables that connect all different components into the frame of the bike, which should help protect them from the elements and vandals.
And speaking of the frame, the company went with a new type of paint that is retroreflective. That will make the ebike reflect light at night like a street sign. The front of a bike also features a LED ring light that illuminates the path ahead in Lyft's signature pink tone, while the back wheel includes a hydraulic disc brake for more consistent stopping power. Sensors throughout the frame will make it easier for the company to ensure properly maintained models are out on the road.
And so that more people can try the bike, Lyft has redesigned the seat clamp to accommodate riders of all heights better. A built-in speaker system and LCD screen will guide you through unlocking and parking the bike, as well as other parts of its operation.
The introduction of this new model comes as more and more people in the US and other parts of the world look to different modes of transportation to get around while the pandemic is still a concern. According to Lyft, more than 1.8 million people tried out its bikes and scooters for the first time last year. Its data also shows that people like ebikes in particular, with those models getting two to three times more use than the company's classic pedal bikes.
If you live in the Bay Area, you'll have a chance to try out the new ebike starting next week when it's added to the Bay Wheels fleet. Later in the year, Lyft will begin integrating the bikes into its Divvy program in Chicago.
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Lyft, Inc. (LYFT) CAO Lisa Blackwood-Kapral Sells 4,514 Shares
By: MarketBeat | May 28, 2021
Lyft, Inc. (NASDAQ:LYFT) CAO Lisa Blackwood-Kapral sold 4,514 shares of the firm's stock in a transaction on Wednesday, May 26th. The stock was sold at an average price of $53.77, for a total transaction of $242,717.78. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.
NASDAQ LYFT traded up $1.60 during trading hours on Friday, reaching $57.09. 9,029,342 shares of the company were exchanged, compared to its average volume of 7,494,000. Lyft, Inc. has a 1 year low of $21.34 and a 1 year high of $68.28. The business's 50 day simple moving average is $56.35 and its 200-day simple moving average is $53.06. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 0.46. The stock has a market capitalization of $18.80 billion, a P/E ratio of -10.18 and a beta of 2.32.
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Lyft Covered Call: One Way To Generate Income Or Protect Recent Gains
By: Tezcan Gecgil/Investing.com | May 26, 2021
San Francisco-based Lyft (NASDAQ:LYFT) is the second largest ride-sharing service provider in the U.S. Founded in 2013, it had its initial public offering in March 2019.
LYFT shares are up by 9% since the beginning of this year and have gained 67% in the last 12 months. On Mar. 18, they hit a record high of $68.28. Now, the stock is hovering at $54.5. The market capitalization stands at $17.7 billion.
LYFT Weekly Chart.
Over the past several weeks, we've discussed how investors could consider writing covered calls on their stock holdings. Today, we look at Lyft and provide an example for a covered call.
Such an option strategy could help investors decrease the volatility of their portfolios and offer shareholders some protection against declines in the share price. Readers who are new to options might want to revisit the initial article in the series before reading this post.
Lyft
Intraday Price: $54.45
52-Week Range: $21.34 - $68.28
Year-to-date Price Change: Up about 9%
Lyft announced Q1 metrics in early May. Revenue came in at $609 million, a decline of 36% from $956 million reached a year ago. COVID-19 meant a substantial decrease in the number of active riders.
Adjusted net loss was $114.1 million, compared with Q1 2020 adjusted net loss of $97.4 million. The company reported $312 million in cash and equivalents at the end of the quarter.
The company expects to reach adjusted EBITDA profitability in the third quarter of 2021 assuming the post-pandemic economic recovery continues.
Given the significant increase in the Lyft share price in the last 12 months, a covered call might be an appropriate strategy for some investors.
Covered Calls On Lyft Stock
For every 100 shares held, the strategy requires the trader to sell one call option with an expiration date at some time in the future.
As we write on Tuesday afternoon, Lyft stock is trading at $54.45. Therefore, for this post, we'll use this price.
A stock option contract on Lyft (or any other stock) is the option to buy (or sell) 100 shares.
Investors who believe there could be some short-term profit-taking soon might use an at-the-money (ATM) or slightly out-of-the-money (OTM) call option. We will use a July 16 expiry 55-strike call option.
This option is OTM, because the strike price ($55) is higher than the current market price of $54.45.
So, the investor would buy (or already own) 100 shares of Lyft stock at $54.45 and, at the same time, sell a Lyft July 16, 2021, 55.0-strike call option. This option is currently offered at a price (or premium) of $3.68.
An option buyer would have to pay $3.68 X 100 (or $368) in premium to the option seller. This call option will stop trading on Friday, July 16, 2021.
This premium amount belongs to the option writer (seller) no matter what happens in the future, for example, on the day of expiry.
Assuming a trader would now enter this covered call trade at $54.45, at expiration, the maximum return would be $423, i.e., $368 + ($55.0 - $54.45) x 100, excluding trading commissions and costs.
Risk/Reward Profile For Unmonitored Covered Call
The intrinsic value of the OTM option at the time of buying is $0. Since the current market price is below the strike price, there is no rationale behind exercising the option. If the stock price moves above the strike price (in our case $55.0), the option then becomes in the money, and it is worth exercising.
Instead, this OTM option has extrinsic value, which is also known as time value. In the case of this covered call, the maximum profit that the trader can realize at expiry is (Strike Price - Stock Entry Price) x 100 + Option Premium Received.
In our example, it would be ($55.0 - 54.45) x 100 + 368 = $423
The trader realizes this gain of $423 as long as the price of Lyft stock at expiration remains above the call option's strike price (i.e.: $55.0).
On expiration day, if the stock closes below the strike price, the option would not get exercised, but would instead expire worthless. Then, the stock owner with the covered call position gets to keep the stock and the money (premium) s/he was paid for selling the option.
At expiration, this trade would break even at a Lyft stock price of $50.77, excluding trading commissions and costs.
Another way to think of this break-even price is to subtract the call option premium ($3.68) from the underlying Lyft stock price when we initiated the covered call (i.e.: $54.45).
On July 16, if Lyft stock closes below $50.77, the trade would start losing money within this covered call setup. Therefore, by selling the covered call, the investor has some protection against a potential loss in the case of a decline in the underlying shares. In theory, a stock's price could drop to $0.
What If Lyft Stock Reaches A New All-Time High?
As we have noted in earlier articles, such a covered call would limit the upside profit potential. For example, if Lyft stock were to reach a new high for 2021 and close at $70 on July 16, the trader's maximum return would still be $423.
In such a case, the option would be deep ITM and would likely be exercised. There might also be brokerage fees if the stock is called away.
As part of the exit strategy, the trader might also consider rolling this deep ITM call option. In that case, the trader would buy back the $55.0 call before expiry on July 16.
Depending on her/his views and objectives regarding the underlying Lyft stock, s/he could consider initiating another covered call position. In other words, the trader could possibly roll out to an Aug. 20 expiry call with an appropriate strike.
Selling Cash-Secured Puts On Lyft
On a final note, a potential investor who does not currently own Lyft stock could also consider selling a cash-secured put option on the stock. We have covered the topic in detail in earlier articles (for example, here).
Such a trade could appeal to investors who want to receive premiums (from put selling) or who want to potentially own Lyft stock for less than its current market price of $54.45 in our example).
So the trader would typically write an OTM Lyft put option and simultaneously set aside enough cash to buy 100 shares of Lyft stock (hence, it is cash-secured).
The Lyft July 16, 2021, 52.50-strike put option is currently offered at a price (or premium) of $2.93.
This premium amount belongs to the option writer (seller) no matter what happens in the future, i.e. until or on the day of expiry.
At expiration on July 16, the maximum return for the seller would be $293, excluding trading commissions and costs. The seller’s maximum gain is this premium amount if Lyft stock closes above the strike price of $52.50. In that case, the option expires worthless.
As our examples show, these options enable investors to put together trades that are not any riskier than owning stocks outright.
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Lyft (LYFT) Upgraded to Outperform at Daiwa Capital Markets
By: MarketBeat | May 17, 2021
Lyft (NASDAQ:LYFT) was upgraded by analysts at Daiwa Capital Markets from a "neutral" rating to an "outperform" rating in a research note issued on Monday, Benzinga reports. The brokerage currently has a $56.00 price objective on the ride-sharing company's stock, down from their previous price objective of $59.00. Daiwa Capital Markets' price objective points to a potential upside of 14.24% from the stock's current price...
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Lyft Given New $70.00 Price Target at Morgan Stanley
By: MarketBeat | May 11, 2021
Lyft (NASDAQ:LYFT) had its price objective hoisted by equities research analysts at Morgan Stanley from $65.00 to $70.00 in a research note issued on Tuesday, Benzinga reports. The brokerage currently has an "equal weight" rating on the ride-sharing company's stock. Morgan Stanley's price target indicates a potential upside of 42.39% from the stock's current price.
Several other equities research analysts have also commented on LYFT. Citigroup Inc. 3% Minimum Coupon Principal Protected Based Upon Russell increased their price objective on shares of Lyft from $76.00 to $80.00 in a research note on Thursday, May 6th. Truist Financial increased their price objective on shares of Lyft from $56.00 to $70.00 in a research note on Tuesday, April 27th. Citigroup increased their price objective on shares of Lyft from $76.00 to $80.00 in a research note on Thursday, May 6th. Susquehanna increased their price objective on shares of Lyft from $45.00 to $80.00 and gave the company a "positive" rating in a research note on Wednesday, February 10th. Finally, Truist increased their price objective on shares of Lyft from $44.00 to $66.00 and gave the company a "buy" rating in a research note on Wednesday, February 10th. Eight research analysts have rated the stock with a hold rating and twenty-three have given a buy rating to the stock. Lyft has a consensus rating of "Buy" and a consensus target price of $69.06.
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Lyft (LYFT) Shares Gain on Better-Than-Expected Results and Outlook
By: TheStreet | May 5, 2021
• Lyft trades higher after posting a narrower-than-expected first-quarter loss and saying it continues to see a rebound in ridership as the pandemic recovery unfolds.
Lyft (LYFT) shares traded higher Wednesday after the ride-hailing technology company and Uber (UBER) competitor reported a narrower-than-expected first-quarter loss and said it continues to see a rebound in ridership as the pandemic recovery unfolds.
Shares of Lyft were up 6% in premarket trading after the San Francisco-based company posted a per-share loss of 35 cents, 20 cents narrower than the 60-cent loss forecast by analysts polled by FactSet. Revenue came in at $609 million, less than the $677.7 million forecast.
Active riders were 13.49 million vs. 12.8 million expected in a FactSet survey, while revenue per active rider was $45.13 vs. $44.50 expected by FactSet.
Transportation companies in general are beginning to see an increase in activity as COVID vaccinations spur business reopenings following more than 14 months of restrictions and stay-at-home orders - and as people feel more comfortable returning to work and traveling.
Lyft said in mid-March that it expected to post positive weekly ride-hailing growth on a year-over-year basis and every subsequent week through the end of the year, so long as COVID infection rates continued to decline.
The company reaffirmed its expectation that it will reach profitability on an adjusted earnings before interest, taxes, depreciation and amortization basis by the third quarter. Lyft had originally set a goal of reaching that benchmark by the end of the year.
Meantime, Uber will report its own first-quarter results after the close of trading on Wednesday. Analysts polled by FactSet are expecting Uber to post a loss of 56 cents a share on revenue of $3.3 billion.
Shares of Uber were up 3.72% at $54.96 in premarket trading on Wednesday.
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Analysts Chime In on LYFT After Self-Driving Unit Sale
By: Schaeffer's Investment Research | April 27, 2021
• Lyft is selling its self-driving technology to Toyota for $550 million
• The company move up its profitability timeline by one quarter
Ridesharing platform Lyft Inc (NASDAQ:LYFT) is in the spotlight this morning, after news that the company is selling its self-driving technology unit to Toyota (TM). The $550 million deal, which will close later this year, enabled Lyft to move up its profitability timeline by one quarter. To follow, Needham initiated coverage of the security with a "hold" rating, while BTIG and Truist Securities upped their price targets to $80 and $70, respectively.
At last check, LYFT is up 1.6% to trade at $64.06 -- inching above recent pressure at the $65 level. Furthermore, with long-term support from the 60-day moving average swooping in to catch its recent pullback, today's pop has the stock climbing back up toward its March 18, annual high of $68.28. In the last six months, LYFT has added 182.3%.
On the analyst front, there is still some room for upgrades, though sentiment is mostly bullish. Coming into today, seven of 26 analysts in coverage carried a tepid "hold" rating, while 19 said "buy" or better. Plus, the stock's 12-month target price of $67.60 is a 4.1% premium to current levels.
Meanwhile, short interest represents 9.5% of Lyft stock's available float. In other words, it would take nearly four days to buy back these bearish bets, at the security's average pace of trading.
The options pits also lean firmly in the bullish camp. This is per LYFT's 10-day call/put volume ratio of 5.11 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 86th percentile of the past 12 months. In other words, long puts are being picked up at a quicker-than-usual clip.
Now looks like a good time to weigh in on the security's next move with options. The stock is seeing attractively priced premiums at the moment, per Lyft stock's Schaeffer's Volatility Index (SVI) of 57%, which sits in just 19th percentile of its annual range.
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Lyft (LYFT) Sells Level 5 Unit to Toyota Subsidiary for $550 Million
By: TheStreet | April 26, 2021
• Sale of self-driving unit seen speeding EBITDA profitability at rideshare company.
Lyft, Inc. (LYFT) said Monday after the bell it has agreed to sell its Level 5 self-driving vehicle division to a unit of Toyota Motor Corp. for $550 million.
The ridesharing company said the deal will accelerate its path to profitability, largely by reducing R&D spending.
Level 5 is being sold to Woven Planet Holdings, Inc., a subsidiary of Toyota. Lyft launched its Level 5 unit in 2017 to develop its own self-driving technology. The company said it will now focus on its open platform unit to integrate third-party self-driving technologies with its dispatching network.
"This partnership will help pull in our profitability timeline," Lyft Co-Founder and President John Zimmer said in a statement. "Assuming the transaction closes within the expected timeframe and the COVID recovery continues, we are confident that we can achieve Adjusted EBITDA profitability in the third quarter of this year."
The deal is expected to cut $100 million of Lyft’s non-GAAP operating expenses a year, “primarily from reduced R&D spend,” The statement said.
Lyft will receive $200 million up front, once the transaction closes in the third quarter, with payments of the remaining $350 million spread over five years, according to the statement.
Woven Planet and Lyft have signed commercial agreements for the utilization of Lyft system and fleet data to accelerate the safety and commercialization of the automated-driving vehicles that Woven Planet will develop, according to the statement.
Shares of Lyft rose $1.15, or 1.8%, to $64.21 in after-hours trading. In Toyota ADRs (TM) were little changed in after-hours action.
Lyft and rival Uber UBER have recently been seen as benefiting from economic reopenings as pandemic worries ease in the U.S.
In December, Uber sold its self-driving division to Aurora.
Uber weathered the coronavirus in part because of its Uber Eats food delivery unit, which saw sales surge during lockdowns.
Earlier this month TheStreet's Jim Cramer said he was bullish on Uber following its latest results.
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Lyft, Inc. (LYFT) Given Consensus Recommendation of "Buy" by Brokerages
By: MarketBeat | April 21, 2021
Shares of Lyft, Inc. (NASDAQ:LYFT) have received a consensus recommendation of "Buy" from the thirty-seven analysts that are covering the company, Marketbeat reports. Eight analysts have rated the stock with a hold recommendation and twenty-two have assigned a buy recommendation to the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $63.55.
Several brokerages have recently issued reports on LYFT. Morgan Stanley raised their target price on shares of Lyft from $60.00 to $65.00 and gave the company an "equal weight" rating in a research note on Wednesday, March 31st. Barclays lifted their price objective on shares of Lyft from $49.00 to $55.00 and gave the stock an "equal weight" rating in a research note on Wednesday, February 10th. Susquehanna lifted their price objective on shares of Lyft from $45.00 to $80.00 and gave the stock a "positive" rating in a research note on Wednesday, February 10th. Nomura assumed coverage on shares of Lyft in a research note on Tuesday. They set a "neutral" rating on the stock. Finally, Zacks Investment Research raised shares of Lyft from a "sell" rating to a "hold" rating and set a $51.00 price objective on the stock in a research note on Tuesday, January 12th.
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Lyft lets you request rides directly from your healthcare provider
By: Engadget | April 15, 2021
• The new pass aims to bypass the bureaucracy of booking medical trips.
Ride-hailing services took a beating during the pandemic as stay-in-place restrictions kept business muted. Yet, Lyft is taking some of the lessons learned from the past year to build on its ties with the healthcare sector. Starting today, the company is introducing a feature that lets patients access medical rides directly through the Lyft app. The "Lyft Pass for Healthcare" service is designed to streamline the process of arranging a trip to the doctors via a health plan or social services organization, such as Medicaid and Medicare.
Lyft says patients currently have to trawl through an arduous process to book transportation to their appointment, including phoning a call center up to 72 hours in advance to arrange a ride. By inserting its app into the journey, Lyft is hoping to be the go-to service for recurring trips to check-ups, vaccinations and even prescription pick-ups.
While healthcare providers have been able to offer Lyft journeys in the past, now eligible patients can request covered rides to and from their appointment via the app, which can be redeemed with a Pass (delivered through phone number, code or direct link). Meanwhile, the organization can set a total budget for the transportation program, including the maximum cost for each ride, and monitor usage and spend. Lyft expanded the Pass system to businesses last July as a way for companies to handle rides for workers during the pandemic.
Both Lyft and rival Uber are already offering free or discounted rides for vaccinations as part of their lobbying efforts with the Biden administration to secure jabs for their drivers. Lyft also previously partnered with medical software provider Epic to allow clinicians to schedule a ride for their patients from their health record.
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Uber, Lyft tout U.S. ride-hail driver pay, incentives amid demand uptick
By: Tina Bellon | April 7, 2021
(Reuters) - Uber Technologies (NYSE:UBER) Inc and Lyft Inc (NASDAQ:LYFT) said U.S. drivers on their ride-hail platforms were earning significantly more than before the pandemic as trip demand outstrips driver supply, prompting the companies to offer extra incentives.
Uber on Wednesday said it would invest an additional $250 million to further boost driver earnings and offer payment guarantees in an effort to incentivize new and existing drivers.
Uber's Vice President of U.S. & Canada Mobility, Dennis Cinelli, in a blog post told drivers to take advantage of higher earnings before pay returns to pre-COVID-19 levels as more drivers return to the platform. https://ubr.to/2Q6pSxN
Uber said drivers spending 20 hours online per week were seeing median hourly earnings of around $31 in Philadelphia and close to $29 in Chicago. Those earnings are after Uber's fee but before expenses, which drivers are responsible for as independent contractors.
Lyft on Tuesday said drivers in the company's top-25 markets were earning an average of $36 per hour compared to $20 per hour pre-pandemic. In Denver, drivers earn as much as $44 per hour on average, the company said. Lyft is also offering additional incentives and promotions in select markets.
The uptick in demand comes as more U.S. states lift lockdown restrictions implemented in response to the COVID-19 pandemic, vaccination rates increase and a growing number of Americans start moving again.
But ride-hail drivers, many of whom stopped driving during the height of the pandemic over safety concerns and amid sluggish demand, have been slow to return to the road.
Uber and Lyft executives have told investors driver supply was a concern going into the second half of the year, when demand is expected to ramp up further. Lyft said investments to boost driver supply will create first-quarter revenue headwind of $10 million to $20 million.
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Lyft, Inc. (LYFT) Given Consensus Recommendation of "Buy" by Brokerages
By: MarketBeat | March 27, 2021
Shares of Lyft, Inc. (NASDAQ:LYFT) have been given an average recommendation of "Buy" by the thirty-six brokerages that are covering the company, Marketbeat Ratings reports. Eight research analysts have rated the stock with a hold recommendation and twenty-two have given a buy recommendation to the company. The average 1 year target price among brokers that have issued ratings on the stock in the last year is $62.76.
A number of equities research analysts recently weighed in on LYFT shares. Truist lifted their price objective on shares of Lyft from $44.00 to $66.00 and gave the company a "buy" rating in a report on Wednesday, February 10th. DA Davidson lifted their price objective on shares of Lyft from $58.00 to $66.00 and gave the company a "buy" rating in a report on Wednesday, February 10th. Jefferies Financial Group lifted their price objective on shares of Lyft from $70.00 to $75.00 and gave the company a "buy" rating in a report on Wednesday, February 10th. Smith Barney Citigroup lifted their price objective on shares of Lyft from $49.00 to $60.00 in a report on Thursday, December 3rd. Finally, Zacks Investment Research upgraded shares of Lyft from a "sell" rating to a "hold" rating and set a $51.00 price target for the company in a report on Tuesday, January 12th.
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Lyft Sees a Smooth Ride for Passenger Volume in 2021
By: TheStreet | March 18, 2021
Shares of Lyft (LYFT) were rising Thursday after the ride hailing service said that last week's rider volume was its best in the 12 months since pandemic lockdowns began last March.
Last week was also the first time this year Lyft saw year-over-year growth in riders.
The San Francisco company now expects to post positive weekly ride-hailing growth on a year-over-year basis through year's end -- barring a significant reversal in COVID-19 trends.
Starting next week Lyft expects weekly ride volume to more than double year over year, according to Thursday's blog.
The company credits its positive outlook to the fact that more than 22% of the U.S. population has received at least the first dose of the COVID vaccine, with over 110 million doses administered.
On Wednesday, Lyft was added to Wedbush Securities' Best Ideas list.
Analyst Dan Ives raised his one-year price target on the ride-hailing company to $85 from $72 to reflect a stronger reopening trajectory into the second half of 2021 and 2022 as well as improved profitability, and long-term opportunities for stronger revenue per rider.
“We continue to believe the ride-sharing stalwarts Uber (UBER) - Get Report and Lyft are well-positioned to see a springboard of consumer demand bounce back as a vaccine gets deployed to the masses by this summer and more start to return to the office and traveling rebounds significantly,” Ives wrote in a research note.
Ives maintained his outperform rating and $85 price target on Lyft.
Both Uber and Lyft have been slammed by the COVID-19 pandemic, though analysts have been upbeat about Uber’s food-delivery business, which has grown during U.S. economic lockdowns.
Lyft shares at last check were up 2.2% to $67.38. Uber shares added 1.1% to $56.98.
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Uber, Lyft agree to share info on banned drivers in safety push
By: Tina Bellon | March 11, 2021
Uber Technologies (NYSE:UBER) Inc and Lyft Inc (NASDAQ:LYFT) on Thursday said they would share with each other information on drivers and delivery workers they had banned from their platforms for the most serious incidents in an effort to boost safety.
The companies said such incidents would be physical assault resulting in a fatality and the most serious forms of sexual assault, adding they hoped to eventually share such data across the wider transportation and delivery industry.
The move comes more than a year after Uber released its first safety report, detailing about 6,000 reports of sexual assault related to 2.3 billion trips in the United States in 2017 and 2018. https://
Lyft has vowed to produce a similar report, the publication of which has been delayed several times. Jennifer Brandenburger, Lyft's director of public policy for community safety, said the company was awaiting the resolution of a dispute with a California regulator that has demanded detailed information on sexual assault and harassment claims.
Uber and Lyft oppose the disclosures, arguing they would violate victims' rights to privacy.
While both companies conduct background checks through a third party before allowing drivers to work on their platforms, company executives said that the extreme underreporting of sexual assault means those issues frequently do not get detected.
"The reality is, as our safety report showed, these types of serious safety incidents are extremely rare, less than one tenth of 1% ... so we're talking about a very small number of drivers who will be affected by this" said Uber's Chief Legal Officer Tony West.
Brandenburger said the sharing program was designed to balance safety on the platforms with customer privacy and fairness. The companies will decide in the future whether to broaden the types of safety incidents they share data on, the executives said.
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LYFT Looks Like a Good Pick for Spring
By: Schaeffer's Investment Research | March 4, 2021
• The 20-day moving average could prop up the shares of Lyft stock
• There's still plenty of room for upgrades, too
The shares of rideshare name Lyft Inc (NASDAQ:LYFT) recently staged a breakout above the $54 level, an area that is now serving as support. Furthermore, the ascending 20-day moving average has caught up to this trendline, and could also prop up these shares. With this technical support in place, now looks like a good time to enter a new position on LYFT.
There is still some room for upgrades amongst the brokerage bunch, with seven of the 26 analysts in coverage carrying a tepid "hold" rating. Meanwhile, short interest makes up 9.9% of the stock's available float. In other words, it would take nearly four days to buy back these bearish bets at LYFT's average pace of trading.
Now looks like a good time to weigh in on the security's next move with options, too. The stock is seeing attractively priced premiums at the moment, per Lyft stock's Schaeffer's Volatility Index (SVI) of 60%, which sits in just the 8th percentile of its annual range. Furthermore, LYFT's Schaeffer's Volatility Scorecard (SVS) sits at a relatively high 85 out of 100, meaning the equity has tended to exceed options traders' volatility expectations during the past year. Lastly, our recommended call option has a leverage ratio of 5.6 and will double in value on a 17.6% rise in the underlying security.
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Bulls Blast Lyft (LYFT) Stock Following Stellar Week of Ride Volume
By: Schaeffer's Investment Research | March 3, 2021
• Lyft saw its best week of rides last week since the pandemic started
• The equity is up nearly 110% in the last six months
The shares of LYFT Inc (NYSE:LYFT) are up 5.1% to trade at $59.95 at last check, after ride-hailing last week saw its highest level of volume since the start of the Covid-19 pandemic. In response, Lyft said it expects to report smaller losses than previously projected for the first quarter of 2021.
Out of the gate today, Lyft stock raced to an annual high of $60.80. While the shares have been consolidating below this level for the past month, their 20-day moving average contained any sharp pullbacks. Over the last six months, LYFT is up 109.7%.
Drilling down to today's options activity, 8,219 calls have crossed the tape so far, which is three times the average intraday amount. Most popular is the weekly 3/5 61-strike call, where new positions are being opened. This implies that options traders expect a lot of upside for Lyft stock by the end of the week. The April 65 call is also popular today.
The security could soon benefit from a short squeeze as well. Short interest rose 10.4% in the most recent reporting period, and the 24.84 million shares sold short accounts for a healthy 9.9% of the stock's available float.
Premiums are reasonably priced at the moment. The security's Schaeffer's Volatility Index (SVI) of 53% stands in the extremely low 4th percentile of its annual range, implying that options players are pricing in relatively low volatility expectations at the moment. Furthermore, the security's Schaeffer's Volatility Scorecard (SVS) sits at an elevated 86 out of 100, meaning LYFT has exceeded option traders' volatility expectations during the past year.
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Lyft Raises Outlook as Ridesharing Demand Returns Sooner Than Expected
By: Investing.com | March 2, 2021
Shares of Lyft surged in after-hours trading on Tuesday after upgrading its outlook on performance, citing a return to stronger rideshare demand sooner than expected.
LYFT (NASDAQ:LYFT) was up more than 2% on the news.
The adjusted EBITDA loss in the first quarter of 2021 was expected to be $135 million, an improvement from the prior outlook of between $145 million and $150 million. The company attributed the improvement in its outlook for reduced operating expenses and to the contribution of margin, which is expected to be at the top end of the previously provided range.
In February, average daily rideshare rides increased 4.0% month-over-month relative to the average daily rideshare ride volume in January 2021. Rideshare ride volume during the week ending February 28th reached a new record level for 2021 and was the company’s best week since March 2020.
Looking ahead, the company expects rideshare ride volume beginning the week ending March 21, 2021, to show positive year-on-year growth. "This growth trend is expected to continue through the duration of 2021 barring a significant worsening of COVID-19 conditions," it added.
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Lyft Goes Retro to Attract a New Consumer
By: Motley Fool | February 24, 2021
• Lyft is opening the door to a new consumer, but will its convenient new service move the needle for the company?
With so much uncertainty amid the COVID-19 pandemic, it's more important than ever to have access to dependable transportation for goods and services. That's the driving force behind Lyft's (NASDAQ:LYFT) Call A Lyft Ride program, a service aimed toward seniors without smartphones or other consumers who prefer not to use smartphone apps.
The setup is simple: Potential riders, or their family members, can call 631-201-LYFT and book a ride with a Lyft agent. The driver can be expected to arrive shortly afterwards. Agents will be available from Monday to Friday, 8 a.m. to 8 p.m. EST, with payment accepted by debit or credit card over the phone.
Without the app to track the driver-arrival process, consumers using this service will be able to receive texts with important information. After the booking process is completed, the service will provide a link for consumers to track their ride, essentially offering all the advantages of Lyft transportation without riders having to use a smartphone app. The service is currently available in selected Florida cities. While Call A Lyft Ride opens the door to a potential new consumer base, investors should keep in mind that competitor Uber had tried a similar service and later shut the program down.
Call A Lyft Ride isn't the company's only app-less option. Consumers can also request a ride through ride.lyft.com, and get information and updates via text.
Call A Lyft Ride might not be a strategy that moves the needle for Lyft's overall business, but it doesn't mean the strategy isn't worth doing, especially considering it will serve vulnerable consumers in need of transportation. Further, Lyft ride volumes were down 52% and 51% in December and January, respectively, compared to the prior year, with depressed demand from the COVID-19 pandemic. Investors should expect management to be exploring all options for ride volume on its journey toward profitability.
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Lyft's new features make it easier to order and pay for rides for others
By: Engadget | February 11, 2021
• The company wants to help you get your loved ones to their COVID-19 vaccine appointments and more.
Lyft is introducing two new features to help people get to vaccine appointments and other essential destinations. The first, Rides for Others, allows you to order a trip for one of your friends or family members. As the person paying for the ride, you'll get a notification when a driver picks up your loved one and you'll be able to follow their trip progress. Lyft notes the feature will also reduce the inevitable driver confusion that occurred when you ordered a ride for someone else in the past.
Rides for Others is available today across the US. But in California, Oregon and Washington state, the company is piloting another feature called Lyft Family that, as you might have guessed from the name, gives families more robust functionality when it comes to sharing rides. The feature allows you to add up five other family members to your Lyft account and set a single payment method for everyone to use. The idea is that anyone with access to your account can use that payment method if they need help paying for a ride. As the account holder, you have one place where you can see all your family's travel expenses and trip details. You also have the option to request a ride on behalf of your family members.
While not an exact match for the features Lyft announced today, earlier this week Uber detailed an initiative with the similar goal of helping people get to their vaccination appointment. In Uber's case, its partnership with Walgreens aims to help those who live in underserved communities and may not have easy access to pharmacies and clinics.
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How to Trade Lyft After Its Earnings Rally
By: TheStreet | February 10, 2021
• Lyft is hitting new 52-week highs after the company delivered better-than-expected quarterly results. Let's look at the upside and downside on the chart.
It took a year to get back to these levels, but Lyft (LYFT) has finally recouped its losses from the selloff in the first quarter of 2020.
The stock had not had a great run as a public company up until that point. However, shares were finally starting to move higher in February 2020 as investors gained confidence in the business.
Then COVID-19 hit and the stock price was hammered lower. Lyft shares fell in five of six weeks, losing an astounding 73% from peak to trough in that span.
Fast forward to February 2021 and the stock is pushing to its highest level in more than year.
While revenue declined sharply year over year, Lyft delivered a sales beat along with a better-than-expected bottom-line.
Additionally, management provided one line in particular that is giving investors optimism: “We should experience a growth inflection beginning in the second quarter that strengthens in the second half of the year.”
The news also was boosting Uber (UBER), which is set to report earnings on Wednesday after the close of trading.
Trading Lyft
Daily chart of Lyft stock.
Chart courtesy of TrendSpider.com
Notice the big breakout in the fourth quarter, as Lyft stock burst over downtrend resistance (blue line). Not only did the stock leave little doubt about the strength of this move by clearing resistance so dramatically, but it also climbed in seven straight weeks.
The move sent Lyft above its 10-week and 10-month moving averages.
Since then, it has been trending above these measures. That will need to remain true in order for Lyft stock to maintain its trend.
I really liked the most recent test of the 10-week moving average. Granted, Lyft temporarily broke below this measure, but after a long test with $50 resistance, this moving average buoyed the stock before sending it soaring above resistance.
This week’s rally sent shares above the prior 2020 high at $54.50 and up to the 61.8% retracement of the entire trading range.
If Lyft stock can continue over $60.50, it could put a move all the way up toward $72.75 in play, near where the 78.6% retracement sits.
I would love to see the stock hold up over $54.50. If it can’t, it’s not the end of the world. However, bulls will certainly want to see Lyft maintain above prior resistance at $50.
Here’s the bottom line: Above $54.50 is bullish and keeps $60-plus on the table. Below $54.50 is less bullish — but not bearish — and keeps $50 support in the realm of possibilities.
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LYFT Surges on Upbeat Q3 Report, Quicker Road to Recovery
By: Schaeffer's Investment Research | February 10, 2021
• The company reported smaller-expected fourth-quarter losses and a revenue beat
• A slew of bull notes rolled in for the ridesharing giant
The shares of LYFT Inc (NYSE:LYFT) are up 5.8% to trade at $56.74 at last check, after the company reported smaller-than-expected fourth-quarter losses, with a revenue beat to boot. A surge in coronavirus cases and the accompanying efforts to slow the spread of the virus have taken their toll on the ridesharing giant, but the firm said it expects to be profitable by the third quarter -- three months earlier than previous projections showed.
In response to LYFT's upbeat fourth-quarter results, a slew of bull notes have rolled in. In fact, no less than 20 firms have hiked their price targets, with two of the biggest hikes coming from CFRA and Susquehanna to $75 and $80, respectively. Analysts were also already optimistic toward the equity coming into today. Of the 22 in question, 16 carried a "buy" or better rating, while six said "hold."
Digging deeper, Lyft stock is currently trading at its highest level since August of 2019. Furthermore, the equity is poised to notch its fifth consecutive close above $52, which has been an area of resistance on the charts for much of the past year. Over the last nine months, LYFT is up 96.2%.
That analyst optimism is reflected in the options pits, where calls are popular. This is per LYFT's 50-day call/put volume ratio of 2.65, which stands in the 72nd annual percentile at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This suggests calls are being picked up at a faster-than-usual clip.
Drilling down to today's options activity, 47,000 calls have crossed the tape so far, which is four times the average intraday amount. Most popular is the weekly 2/12 60-strike call, followed by the 50-strike call in the same weekly series, with positions being opened at the former.
And while short interest is already down 11.8% in the last two reporting periods, 9.2% of Lyft stock's total available float is currently sold short. This means it is possible some of these calls could be shorts hedging against the potential of some unexpected upside.
Lastly, premiums are reasonably priced at the moment. The security's Schaeffer's Volatility Index (SVI) of 78% stands in the 25th percentile of its annual range, implying that options players are pricing in relatively low volatility expectations at the moment.
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Lyft Net Income 2018-2020...
By: Charlie Bilello | February 9, 2021
• Lyft Net Income...
Q4 '20: -$458 million
Q3 '20: -$460 mil.
Q2 '20: -$327 mil.
Q1 '20: -$398 mil.
Q4 '19: -$356 mil.
Q3 '19: -$463 mil.
Q2 '19: -$644 mil.
Q1 '19: -$1.1 billion
Q4 '18: -$249 mil.
Q3 '18: -$249 mil.
Q2 '18: -$179 mil.
Q1 '18: -$234 mil.
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