Should you buy Lyft stock? (February 2024)

Published first at https://www.3minutebreakdowns.com Lyft stock analysis. Ticker: $LYFT Lyft reported earnings recently and the stock soared 60% after hours. But shares pulled back after investors learned of a typo in the earnings statement. The press release said that Lyft’s adjusted EBITDA margins would increase by 500 basis points this year but the correct figure should have been 50 basis points which is only 0.5%. Despite this error, Lyft stock is still sharply higher than where it was before the earnings were released. And with a market cap just over 6 billion, there could be more upside ahead. The nature of a platform business like Lyft is that additional revenue comes at little cost. So the business is all about volume. The more trips that pass through the platform the more profits the company makes. But the reason Lyft stock is still down 77% from its IPO is that revenue growth has slowed down. Uber has continually taken market share from the company while adding new segments like deliveries. Last year, Lyft saw 709 million rides through its platform. Uber, meanwhile, reported 26 million rides a day. #investing #stocks #stockstowatch #3mb