Lyft: Focus On Profitability

Gary Alexander
31.2K Followers

Summary

  • Lyft has crashed more than 50% over the past year, especially as its growth rates have fallen substantially behind Uber.
  • Still, the popular ride-share app has focused on profitability while Uber has banked on "moonshots"
  • Adjusted EBITDA margins are where Lyft shines over Uber, and the company can be reasonably valued on bottom-line metrics.
  • Today, the stock trades at roughly ~5x forward adjusted EBITDA and ~7x FY24 FCF.

Mobile app Uber on a Apple iPhone XR

5./15 WEST

As the market continues its heady early 2023 recovery, I'm continually looking for beaten-down tech names that are well-poised for recovery. In my view, there continues to be a tremendous opportunity for long-term oriented investors to nab high-quality brands at a

This article was written by

31.2K Followers
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in LYFT over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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