<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="What happened” data-reactid=”11″>What happened
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Shares of Lyft (NASDAQ: LYFT) were staging a comeback last month, after the No. 2 ridesharing service gained alongside rival Uber (NYSE: UBER), following Uber’s first-quarter earnings report and a round of positive analyst ratings after its quiet period ended. Toward the end of the month, the stock got another boost as Lyft’s partnership with Alphabet‘s (NASDAQ: GOOG) (NASDAQ: GOOGL) Waymo began to take shape. ” data-reactid=”12″>Shares of Lyft (NASDAQ: LYFT) were staging a comeback last month, after the No. 2 ridesharing service gained alongside rival Uber (NYSE: UBER), following Uber’s first-quarter earnings report and a round of positive analyst ratings after its quiet period ended. Toward the end of the month, the stock got another boost as Lyft’s partnership with Alphabet‘s (NASDAQ: GOOG) (NASDAQ: GOOGL) Waymo began to take shape.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="According to data from S&P Global Market Intelligence, the stock finished the month up 14%.” data-reactid=”13″>According to data from S&P Global Market Intelligence, the stock finished the month up 14%.
Image source: Lyft
The stock was once again volatile but finished the month on an upswing:
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="LYFT data by YCharts” data-reactid=”40″>LYFT data by YCharts
<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="So what ” data-reactid=”41″>So what
Lyft started off the month on a strong note as it rose with Uber, following comments from Uber CEO Dara Khosrowshahi about the easing of the price war between the two companies. Investors took that as good news for Lyft as well as Uber, since both companies are putting up huge losses as they battle for market share, and higher prices should help them cut their losses.
Lyft also tacked on 6.5% on June 5, when several analysts initiated “buy” ratings on Uber, some of which shared warm words about Lyft as well, being optimistic about the potential for autonomous vehicles and the greater mobility economy, an opportunity that favors both Uber and Lyft.
The stock gave up those gains over the next few sessions but then got another boost when Susquehanna upgraded the stock to “positive” on June 11, citing the company’s cost leverage and the growth opportunity in mobility and transportation.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Finally, at the end of the month, the stock gained over the last two sessions after Lyft launched its partnership with Waymo's AV ridesharing service in Phoenix in a pilot program to pick up Lyft riders. Though the news itself isn't likely to change Lyft's prospects, its partnership with Waymo has a lot of potential, and its relationships with AV tech companies and automakers give it an edge over Uber.” data-reactid=”45″>Finally, at the end of the month, the stock gained over the last two sessions after Lyft launched its partnership with Waymo’s AV ridesharing service in Phoenix in a pilot program to pick up Lyft riders. Though the news itself isn’t likely to change Lyft’s prospects, its partnership with Waymo has a lot of potential, and its relationships with AV tech companies and automakers give it an edge over Uber.
<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Now what ” data-reactid=”46″>Now what
Despite another analyst endorsement in July, from a Stifel analyst who said Lyft was a better buy over Uber, the stock has given up some of last month’s gains. That’s a sign that valuation concerns will continue to dictate the stock’s path until the company can ease concerns about its losses and its future growth as it battles for market share with Uber. Today, Lyft trades nearly 15% below its $72 IPO price, meaning it remains a broken IPO.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content=" More From The Motley Fool ” data-reactid=”48″> More From The Motley Fool
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares) and Alphabet (C shares). The Motley Fool recommends Uber Technologies. The Motley Fool has a disclosure policy.” data-reactid=”57″>Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares) and Alphabet (C shares). The Motley Fool recommends Uber Technologies. The Motley Fool has a disclosure policy.
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