How to Invest in Lyft

Lyft, the rideshare company and Uber’s main competitor, was the first tech company of its kind to go public on March 29, 2019 with the apt ticker symbol: LYFT. The company had an ultimately successful IPO, selling over 32.5 million shares at an average of $72 a share. Lyft ended on a high with shares at $78.29 and a market valuation of $22.2 billion. Not too shabby for their first day. The rideshare economy is now worth over a trillion dollars worldwide, making it an important part of the world economy. People can now be a part of this economy as investors, not just as riders or drivers. 

Investing is personal and highly dependent on an individual’s means, goals, and desires. One size does not fit all in the investing world. It is important to do your research before putting your hard earned money into anything. With companies newly on the stock market, doing research is a bit trickier because there is no stock performance history to look through. Instead of looking at the market, you’ll look at the company, their competitors, and their outlook. It’s never wise to invest in a fad or a company with poor prospects. Lyft is still a new company, so there is some huge growth potential, but there are always risks to investing in any company and market. 

Budgets are an important part of life and functioning responsibly. You might even already have a Lyft budget, but this is different from the rides you need to order. You will want to decide how much of your investment portfolio you want to invest. A diversified portfolio is almost always healthier than one focused on any specific company. So it is important to figure out how much you want to invest in specific companies and markets and how much will be invested in funds, like low-cost index funds or mutual funds. 10% is a good round number to dedicate to specific companies like Lyft; it’s enough to make some money without risking your entire portfolio. 

Brokerage accounts are pivotal for investing. Without one, you cannot make investments into specific companies or the stock market, in general. If you already have a brokerage account, great. If not, you can look into brokerage firms like Charles Schwab, Ameritrade, Fidelity, Ally Invest, and so many more. If you are looking to start small perhaps a small investing app like Robinhood, would suit your needs. Depending on your needs and goals, different companies will be better or worse matches. They offer competitive options, so definitely do some comparisons. Once you open a brokerage account, you are ready to start investing!

There are simple ways of investing, and most brokers have websites. Navigate through the website, and you can buy Lyft stock immediately by way of a market order. Or you can wait a little and get a better deal with a limit order meaning you buy only when the market hits a certain price. 

Stocks are personal, so do a little research. Lyft is a newly public company, and it might be the perfect time to invest in the rideshare economy.