Lyft gave out weak guidance, stock being punished. But over the next 5 years, Lyft is growing its earning power. Long term investors might want to keep this stock on the growers at reasonable value list. Lyft finally has gone profitable this year and looks to grow yearly at 20% plus.
If we are going into recession this year or next, lyft could suffer, making the stock cheaper and making new lows. Lyft has debt but also the cash and earning power to service it.
Lyft has a high gross profit margin, which helps as revenue grows. Uber is far large and in more markets, which makes lyft the underdog with luft at 4.4 billion market cap vs uber at 135 billion.
Lyft has something close to a 8% earnings yield at this price near 9. Value investors will be attracted here as an entry. 8 % yield gives somewhat of a margin of safety as its twice what treasuries are paying. 8% earnings yield on a business that can grow earnings at over 20% per year as extremely attractive.
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