RIDEGURU
Only one of the ride-hailing stocks is a buy, according to Stifel analyst Scott Devitt.
He initiated coverage of Uber Technologies Inc. shares UBER, -1.58% with a hold rating on Tuesday, while raising his price target on buy-rated Lyft Inc. sharesLYFT, -2.00% to $76 from $70. Though Devitt is upbeat about more “rational” price activity in the industry, which he expects to boost Lyft’s stock, he still worries about Uber’s valuation as well as its “significantly long path to profitability.”
Lyft also stands to benefit from its partnerships and strategic positioning, according to Devitt. The company has been working with Alphabet Inc.’sGOOG, +0.89% GOOGL, +0.86% Waymo self-driving unit, which he expects will “keep the company on the forefront of innovations in the autonomous vehicle space.” Lyft also became an enrolled Medicaid provider in Arizona last week, which allows the company to service as a covered transportation option for patients traveling to doctors’ appointments.
https://www.marketwatch.com/story/lyft-is-a-better-bet-than-uber-analyst-says-2019-07-02
Comments
Cool, so I'll lose less money with Lyft than with Uber? Good to know.
That's what Wall Street is about these days, no one cares about the bottom line, it's all about top line growth, look at these scooter unicorns. 😆
For real. And if wall street is insane, silicon valley is a whole other level of insanity. The money VCs throw at companies which are barely more than ideas is outrageous. And they just keep shoveling money in to companies like Uber and Lyft which are losing money hand over fist.
In the case of U/L VC got astronomical returns and shifted the risk from private to public hands with their IPO. We’ll see how Wall St. will handle billion dollar quarterly losses.
Medicaid is interesting. Definitely a boost there, though I can't see why Lyft would get it and not Uber. Nevertheless as long as both companies are losing money on every ride I can't see why I should buy them. And when is that gridlock realistically going to end?
Drive sick pax at your own risk, I wouldn't want to get sick for 60 cents a mile. Who knows what they got?
I wouldn't buy either with your money. In fact I shorted Lyft when it went public and got pumped, made more money in couple of weeks than I would make in a month of driving.
Only an idiot would buy either one. Hello, they are both hemorrhaging money people.