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Takeaway: We added LYFT to Investing Ideas on the short side on 5/23.

Editor’s Note: Our Technology analyst Ami Joseph has removed LYFT from his Best Ideas Short list, based on his fundamental research. He does maintain a short bias. The current LYFT short recommendation in Investing Ideas is based primarily on CEO Keith McCullough’s proprietary Risk Ranges market signal.

Stock Report: Lyft (LYFT) - HE LYFT table 05 31 19

THE HEDGEYE EDGE

Lyft (LFYT) bulls point to 95% y/y revenue growth and cheap valuation at ~4x on EV/R for 2019. That’s what they have and that’s it. 

We think the Bears have just about everything else:

  1. A model is landlocked on growth,
  2. Taking share has to be the game plan consistently to drive outperformance,
  3. Back and forth on pricing will keep losses a regular item for investors,
  4. View from inside Lyft that they are NFLX pre-streaming shows how existential autonomous tech is to this company which is a bear case today given how far they are from any decisive path,
  5. Unit penetration curve for North America is fairly steady,
  6. Lack of near-term path to profits,
  7. Lack of disclosure,
  8. Untested management team

In the video excerpt below, from a recent edition of The Macro Show, Technology analyst Ami Joseph lays out his bearish thesis on Lyft. Click here to watch the entire 11-minute video.

Stock Report: Lyft (LYFT) - Technology LYFT forII 5.30.2019 PLAY

ONE-YEAR TRAILING CHART

Stock Report: Lyft (LYFT) - HE LYFT chart 05 31 19