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.
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:
- A model is landlocked on growth,
- Taking share has to be the game plan consistently to drive outperformance,
- Back and forth on pricing will keep losses a regular item for investors,
- 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,
- Unit penetration curve for North America is fairly steady,
- Lack of near-term path to profits,
- Lack of disclosure,
- 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.
ONE-YEAR TRAILING CHART